Industry Odisha Bureau, Aug 2: China has reportedly overtaken the United States of America (USA) as India’s trading partner so far India’s trade position with the USA and China in the fiscal year 2025-26 (FY26) is concerned.
Media reports, citing analyses and views of analysts and financial experts, stated that, “China overtook the US as India’s largest trading partner with bilateral trade at USD 151.1 billion and a record trade deficit of USD 112.16 billion, while India’s surplus with the US fell to USD 34.4 billion in FY26 (2025-26).”
In the context of India’s trade with China, media reports, citing statistics of analysts and financial experts, stated that, “The total trade amounted USD 151.1 billion in FY26, up from USD 139.2 billion in FY25 (2024-25), while the trade deficit posted USD 112.16 billion in FY26, the highest on record, up from USD 99.2 billion in FY25. Accordingly, exports to China recorded USD 19.47 billion, +36.66% year-on-year (YoY), while imports from China registered USD 131.63 billion, +16% YoY.”
On the contrary, India’s total trade with the USA reportedly recorded “USD 127.8 billion in FY26, with trade balance a surplus of USD 34.41 billion, down from USD 40.89 billion in FY25, while India’s exports to the USA posted USD 87.31 billion, +0.92% YoY , and India’s imports from the USA marked USD 52.90 billion, +15.95% YoY.”
Reportedly, “The US remains India’s second-largest trading partner, but the surplus narrowed due to sharp import growth.”
Media reports, citing analysts and financial experts, summed up that, “FY26 marked a structural shift as China became India’s largest trading partner with a record trade deficit, while the US remained a major partner but with a smaller surplus due to higher imports. China’s rapid export growth and sustained import demand pushed it ahead of the US in FY26.”
Pertinent to note here that, China reportedly became “India’s top trading partner for the first time since 2013–14, surpassing the US and UAE.”
