Total imports from China for the financial year ending March climbed to $113.5 billion. In contrast, India’s exports fell to $14.3 billion— marking a sharp annual decline and placing export figures below levels last seen in 2013-14
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India’s trade deficit with China widened to a record $99.2 billion in the 2024-25 fiscal year, driven by a surge in imports of electronics, batteries and solar components, even as exports fell sharply, official data showed on Wednesday.
In March alone, imports from China rose more than 25 per cent year-on-year to $9.7 billion, while exports to its northern neighbour dropped 14.5 per cent to $1.5 billion, according to detailed figures released by India’s commerce ministry.
Total imports from China for the financial year ending March climbed to $113.5 billion. In contrast, India’s exports fell to $14.3 billion — marking a sharp annual decline and placing export figures below levels last seen in 2013-14, despite a comparatively stronger rupee during that period.
“This is a wake-up call for India, as the rising imports reflect deeper structural dependencies of the Indian economy,” said Ajay Srivastava, founder of the Global Trade Initiative, a Delhi-based trade policy think tank.
Srivastava pointed to India’s growing exports of electronics, pharmaceuticals, and engineering goods— sectors that rely heavily on imported components from China— as a key driver of the trade imbalance. He warned that Chinese imports could rise by as much as 20 per cent in the current fiscal year as Chinese exporters seek to re-route goods away from the United States in the wake of new American tariffs.
Last week, US President Donald Trump announced a 90-day pause on tariff hikes for major trading partners, including India, while sharply increasing levies on Chinese goods. The move has raised concerns among Indian officials and industry watchers about a potential flood of redirected Chinese exports into Indian markets.
Officials said the Indian government is preparing to establish a monitoring unit to track low-cost imports, particularly from China, and is cautioning domestic firms against aiding foreign exporters in evading US tariffs.
China remained India’s second-largest trading partner in 2024-25, with total bilateral trade amounting to $127.7 billion, behind the United States.
The government has not indicated whether new tariff or non-tariff barriers are being considered, but trade experts expect pressure to mount on India’s manufacturing sector, which remains vulnerable to foreign supply shocks and pricing pressure.
