India-China Bilateral Trade: China has emerged as the largest trading partner of India. Between April 2025 and March 2026, bilateral trade between India and China reached $151.1 billion. China surpassed the United States to become India's largest trading partner. The US was India's largest trading partner for four consecutive years till 2024-25.
China remained India’s major source of imports. India's imports from China rose 16 per cent to $131.63 billion in FY26. India's exports to China increased 36.66 per cent to $19.47 billion during the last fiscal year. The trade deficit between both countries was at an all-time high of $112.6 billion in 2025-26.
In contrast, India's imports from the US rose to $52.90 billion in 2025-26. Despite tariff-related uncertainties, the US remained India’s top export destination in FY26. India's exports to the US were recorded at $87.31 billion during April 2025 to March 2026.
China was India's top trading partner from 2013-14 to 2017-18 and again in 2020-21. In 2021-22, the US overtook China to become India's top trading partner for four consecutive years.
What was the first trade agreement between India and China?
The 1954 Sino-Indo Agreement, also called the Panchsheel Agreement, officially the Agreement on Trade and Intercourse between India and the Tibet Region of China was the first official trade agreement between India and China that was signed on 29 April 1954 in Peking, Beijing. The preamble of the agreement stated the Five Principles of Peaceful Coexistence (Panchsheel).
In 1984, India and China signed a trade agreement granting each other Most Favoured Nation (MFN) status to boost trade relations, which included reciprocal trade concessions, lower tariffs on over 200 products from India and around 188 products from China.
While the year 1950 saw the establishment of diplimatic relations between India and China. India-China trade relations date back to the 2nd century B.C. via the Silk Road.
What does India export to China?
India mainly exports iron ore, light naphtha, p-xylene, shrimps, and castor oil to China. Look at the list of key products that China imports from India.
- Grams, rice, and pulses
- Ores and concentrates (Chrome Ore, Kyanite Ore, Manganese Ore)
- Vegetable oils
- Wood and timber
- Hides and skins
- Paraffin wax
- Vehicles
- Chemicals, chemical products and drugs and medicines
What does India import from China?
China remains India’s major source of imports. India maily imports machinery, telecommunication equipment and parts, electronics, personal computers, monolithic integrated circuits, lithium-ion batteries, and fertilizers.
- Cereals (rice, green beans, soyabeans, and cereals other than rice)
- Machinery
- Minerals
- Silk and related products
- Animal Products
- Paper and Stationery
- Chemicals
- Oils
