New Delhi: Government data showed that China has overtaken the United States to emerge as India’s largest trading partner in the period 2025-2026, with bilateral trade reaching US$151.1 billion, while the country’s trade deficit with Beijing widened to US$112.16 billion during this period.
The US has been India’s largest trading partner for four consecutive years until 2024-25.
India’s exports to China rose by 36.66 per cent to US$19.47 billion during the last fiscal year, while imports increased by 16 per cent to US$131.63 billion. The trade deficit swelled to an all-time high of US$112.6 billion in 2025-26 from US$99.2 billion in 2024-25.
On the other hand, the country’s exports to the US rose marginally by 0.92 percent to US$87.3 billion during the last fiscal year, while imports increased by 15.95 percent to US$52.9 billion. The trade surplus fell to US$34.4 billion in 2025-26 from US$40.89 billion in 2024-25.
According to Commerce Ministry data, China was India’s largest trading partner from 2013-14 to 2017-18 and also in 2020-21. Before China, the UAE was the country’s largest trading partner. The United States has been the largest partner since 2021-2022.
The major trading partners with which India registered negative export growth in 2025-26 are Netherlands, UK, Singapore, Bangladesh, Saudi Arabia, Australia, France, South Africa and Malaysia.
However, exports to UAE, Germany, Hong Kong, Italy, Nepal, Brazil, Spain, Belgium and Vietnam registered positive growth in the last fiscal year.
The major trading partners with which India registered negative import growth in 2025-26 are Russia, Iraq, Indonesia, Australia, Qatar and Taiwan.
However, imports from UAE, Saudi Arabia, Hong Kong, Switzerland, Singapore, Japan, Korea, Germany, Thailand and Malaysia recorded positive growth in the last financial year.
