India’s exports to China grow 40%, deficit crosses $100 bn, Pg1

Key Highlights:

• India's trade deficit with China surpassed $100 billion in the first nine months of 2026, reaching $105.93 billion.
• Indian exports to China grew by 40.7% to $19.26 billion between January and September 2026.
• Total bilateral trade between the two countries increased by 25.4% to $144.45 billion during the same period.
• India's imports from China rose by 23.3% to $125.19 billion.
• The widening trade imbalance was a key discussion point between Prime Minister Narendra Modi and Chinese President Xi Jinping at the recent BRICS summit.

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Detailed Insights:

• The current trade deficit is on track to exceed last year's record figure of $116.12 billion.
• Despite significant export growth, India's exports to China remain a much smaller base compared to imports.
• India's major exports to China include seafood products, naphtha, and printed circuit boards.
• India's imports from China are largely finished goods, including electronics and machinery, and intermediates for manufacturing.
• Concerns persist regarding the heavily lopsided trade relationship, limited market access for Indian firms, and the nature of India's imports.
• Both leaders emphasized the need to address structural trade imbalances, supply chain issues, and facilitate predictable market access.
• India is also concerned about China's increasing export controls on various sectors, such as fertilizers and rare earths.

Key Concepts Involved:

• Trade Deficit: Occurs when a country's imports exceed its exports, resulting in a negative balance of trade.
• Market Access: The ability of a country's goods and services to enter the markets of another country.
• Supply Chain Issues: Disruptions or inefficiencies in the network of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.