India-China Trade Deficit
Structural Imbalance
India-China bilateral trade hit a record $155.6 billion in 2025, but the trade deficit widened to a record $116 billion. India's exports to China were $19.75 billion, while imports from China surged to $135.87 billion, driven by electronics, machinery, organic chemicals, and plastics.
- 2025 bilateral trade: $155.6 billion (12% YoY increase)
- 2025 trade deficit: $116 billion (up from $99 billion in 2024)
- India's exports to China: $19.75 billion — concentrated in raw materials (iron ore, cotton, organic chemicals)
- India's imports from China: $135.87 billion — dominated by electronics, telecom equipment, machinery, active pharmaceutical ingredients (APIs)
- India imported 93% of rare earth magnets from China in FY 2024-25
- China controls 60%+ of global rare earth mining and 80%+ of processing
- India launched the National Critical Mineral Mission (NCMM) in 2024 and approved a Rs 73 billion scheme for rare earth permanent magnet manufacturing in November 2025
● Tracked since February 11, 2026 · last seen April 02, 2026 · updates as the daily brief publishes
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