India’s exports to China grew 40% in the first three quarters to $20 billion, although the trade deficit with China has continued to widen, already crossing $100 billion this year, according to data released Wednesday by China’s General Administration of Customs (GAC).
India’s major exports to China this year have included seafood products, naphtha, and printed circuit boards, which, until recently, India was buying in bulk from the neighbouring country. Two-way trade between January and September was up 25.4% to $144.45 billion, while India’s imports from China continued to rise, up 23.3% to $125.19 billion. Indian exports to China registered a robust 40.7% growth, albeit from a much smaller base, to $19.26 billion after the first three quarters, already reaching last year’s total. Exports to China have, however, shown some promise, up by 40.7%.
Indian officials say that while there is no expectation for trade to be perfectly balanced, the broader concern is the heavily lopsided trade relationship, a lack of market access for Indian firms, and the nature of India’s imports. the continued reliance on finished goods, including large quantities of electronics and machinery, remains a concern While India requires large amounts of intermediates from China for manufacturing. India is also concerned about Chinese export controls in an increasing number of sectors, from fertilisers to rare earths.
At last month’s meeting in New Delhi, both leaders “underlined the need to address each other’s concerns, including structural trade imbalance and supply chain issues, and facilitation of meaningful and predictable market access”, a statement from the Ministry of External Affairs said. Both leaders also “took note of the progress in people-to-people ties and underscored the need to further promote cultural exchanges, business linkages and greater mobility between the two countries”, the statement said, following the normalisation of relations since the October 2024 meeting between the two leaders.
