India’s trade pattern changed in the financial year 2025–26, as China became the country’s largest trading partner. This shift shows changing global trends and India’s strong dependence on Chinese imports, even though exports are also growing.

Thank you for reading this post, don't forget to subscribe!

China India Trade FY26: China Overtakes US

In China India Trade FY26, total trade between India and China reached USD 151.1 billion. China again took the top position as India’s biggest trading partner, a role it held in earlier years too. The United States, which was number one for the last four years, is now in second place.

China India Trade FY26: Imports Increase Trade Gap

A major reason behind this change is the rise in imports from China. India’s imports grew by 16% to USD 131.63 billion. Exports also increased by 36.66% to USD 19.47 billion. However, the trade deficit became wider, reaching a record USD 112.6 billion. This shows India still depends heavily on Chinese products like electronics, machinery, and raw materials.

China India Trade FY26: India-US Trade Trends

Trade between India and the United States showed slower growth. Exports from India to the US increased slightly by 0.92% to USD 87.3 billion. Imports from the US rose by 15.95% to USD 52.9 billion. As a result, India’s trade surplus with the US reduced to USD 34.4 billion from USD 40.89 billion in the previous year.

Global Trade Trends for India

India’s trade with other countries also showed mixed results. Exports increased to countries like the UAE, Germany, Brazil, and Vietnam. At the same time, exports dropped to markets such as the Netherlands, the UK, and Bangladesh. Imports grew from Saudi Arabia, Japan, and Germany, while imports from Russia, Iraq, and Indonesia declined. These changes reflect a complex and shifting global trade environment.

India’s trade in FY26 highlights both opportunities and challenges as the country balances growth with rising imports.