India China Trade
As of 2023-24, China was India’s fourth-largest trading partner in export.
Last updated: Apr, 2026
Introduction
India and China, as major economies in Asia and the global landscape, have developed an extensive and evolving engagement over the decades. India was the earliest country outside the socialist bloc to formally recognise the People’s Republic of China, establishing diplomatic ties in April 1950. Economic interaction between the two countries has been supported by institutional arrangements, including an agreement to address cross-border taxation issues concluded in 1994.
India-China Trade
- Bilateral trade between India and China in FY26 (till November 2025) stood at US$ 96.46 billion against US$ 127.69 billion in FY25.
- In FY26 (till November 2025), China stood as India’s fourth-largest export destination with around 3.94% share in total exports for the year.
- China occupies the 23rd position in foreign direct investment (FDI) equity inflows into India with a cumulative FDI amount of US$ 2.51 billion from April 2000 to September 2025.
Major exports from India to China
- India’s export to China stood at US$ 12.20 billion in FY26 (till November 2025) and US$ 14.25 billion in FY25.
- India exported 4,613 commodities to China in FY26 (till November 2025).
- Major exported items from India to China include electrical machinery and equipment and parts (US$ 2.00 billion), followed by mineral fuels, mineral oils and products of their distillation (US$ 1.78 billion), ores, slag and ash (US$ 1.01 billion), fish and crustaceans, molluscs and other aquatic invertebrates (US$ 956.23 million), nuclear reactors, boilers, machinery and mechanical appliances and parts (US$ 798.45 million), organic chemicals (US$ 782.06 million), and salt, sulphur, earths and stone, plastering materials, lime and cement (US$ 573.81 million), etc. in FY26 (till November 2025).
Major imports by India from China
- Imports from China to India stood at US$ 84.26 billion in FY26 (till November 2025) and US$ 113.45 billion in FY25.
- India imported 7,588 commodities from China in FY26 (till November 2025).
- Major items imported from China include electrical machinery and equipment and parts (US$ 28.66 billion), followed by nuclear reactors, boilers, machinery and mechanical appliances and parts (US$ 18.84 billion), organic chemicals (US$ 7.62 billion), plastic and articles thereof (US$ 4.55 billion), vehicles other than railway or tramway rolling stock and parts (US$ 1.82 billion), fertilisers (US$ 1.81 billion), optical, photographic, medical and precision instruments and apparatus (US$ 1.71 billion), and aluminium and articles (US$ 1.70 billion), etc. in FY26 (till October 2025)
Recent Trends and Developments
- Senior officials from India and China held a fresh round of consultations in Beijing, with both sides noting positive progress in stabilising and rebuilding bilateral relations. The discussions, led by Joint Secretary (East Asia) Mr. Sujit Ghosh, were described as constructive and forward-looking, focusing on people-centric engagement, planned exchanges, and trade and commercial issues, including the early resolution of export control concerns.
- Prime Minister Mr. Narendra Modi met Chinese President Mr. Xi Jinping on the sidelines of the SCO Summit in Tianjin on August 31, 2025, where both leaders welcomed positive momentum in bilateral ties and reaffirmed that India and China are development partners. They underscored the importance of border peace, people-to-people exchanges, balanced trade, and cooperation on regional and global issues, while committing to managing differences through dialogue and mutual respect.
- On January 27, 2025, Foreign Secretary Mr. Vikram Misri met Chinese Foreign Minister Mr. Wang Yi in Beijing to advance the normalisation of India-China relations. The discussions focused on implementing leaders' consensus, enhancing mutual understanding, and resuming practical cooperation across various sectors.
- In July 2024, Syama Prasad Mookerjee Port, Kolkata, in partnership with Pacific International Lines (PIL), has inaugurated the China Calcutta Service (CCS) at the Kolkata Dock System. This direct weekly service from China to Kolkata aims to reduce transit times from Far East Ports, enhancing connectivity and efficiency for stakeholders.
- As of September 15, 2022, 33 projects (25 Sovereign, 11 Non-Sovereign) have been approved for financing of US$ 8.75 billion.
- New Development Bank (NDB) which has established its office in Shanghai, opened its India Regional Office in Gujarat International Finance Tec-City in June 2022. India is the biggest borrower in NDB with 19 projects approved with a commitment of US$ 6.92 billion as on August 31, 2022.
- A bilateral meeting between India and China was held at the third G20 Finance Ministers and Central Bank Governors (FMCBG) meeting at Gandhinagar on July 18, 2023. During the meeting, Union Finance Minister Ms. Nirmala Sitharaman met Mr. Liu Kun, Minister of Finance, People’s Republic of China. The Ministers discussed G20 Finance agenda and the state of their economies, inflation, and trade and recognized the importance of a good business environment for economic growth and development.
Investments and Economic Relations
- The bilateral trade between India and China has grown four-fold in the past decade. The India-China trade crossed US$ 100 billion for the fourth consecutive year, as it amounted to US$ 127.71 billion in FY25.
- As of September 2024, China was ranked as the 22nd largest foreign investor in India, having made cumulative investments amounting to US$ 2.50 billion since April 2000. China investments constitute approximately 0.35% of the total foreign direct investment (FDI) inflow into India.
- With increasing bilateral trade in the last few years, many Indian companies have started setting up Chinese operations to service both their Indian and MNC clientele in China. Apart from this, more than 100 Chinese companies have established offices/operations in India. Many big Chinese names in the field of machinery and infrastructure construction have won projects in India and have opened project offices in India.
Conclusion
India-China economic engagement remains a key pillar of their overall relationship, reflecting the scale and influence of the two largest emerging economies. Recent high-level political guidance and official consultations have reinforced a pragmatic approach focused on stability, dialogue, and people-centric engagement. Both sides are working to expand trade and investment ties in a more balanced manner, including addressing market access and export-related concerns. As India and China position themselves as development partners, their economic interaction continues to shape regional and global economic dynamics.
Contacts
- Embassy of India, Beijing, China
Mr. Pradeep Kumar Rawat (Ambassador);
Contact: amboffice.beijing@mea.gov.in,
Ms. T. Angeline Premalatha (Deputy Chief of Mission);
Contact: dcmoffice.beijing@mea.gov.in
Mr. Karthik Gurunathan Iyer (Counsellor, Political, Information and S&T);
Contact: cpol.beijing@mea.gov.in
Address: No.5, Liang Ma Qiao Bei Jie, Chaoyang, District, Beijing 100600 China
Tel: +86-10-8531 2500/2501/2502/2503
Website - www.eoibeijing.gov.in - Embassy of China in India
Ambassador: H.E. Mr. Xu Feihong
Address: 50-D, Shantipath, Chanakyapuri, New Delhi-110021.
Tel: +91-11-26112345
Email: chinaemb_in@mfa.gov.cn
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