India-China trade deficit tops US$105 bn in January-September 2026
Why in the news
Data released by Chinese customs on 14 October 2026 showed that India’s trade deficit with China went past US$100 billion within the first nine months of 2026.
Key facts
- Trade deficit: US$105.93 billion in January-September 2026, up 20.7%.
- Bilateral trade: US$144.45 billion, an increase of 25.4%.
- China’s exports to India: US$125.19 billion, up 23.3%, led by electronics, machinery and chemicals.
- India’s exports to China: US$19.26 billion, up 40.7%, mostly ores, fuels, seafood and farm goods.
| Indicator | Jan-Sep 2026 (Chinese data) | FY 2025-26 (Indian data) |
|---|---|---|
| Total trade | US$144.45 bn | US$151.1 bn |
| India’s imports from China | US$125.19 bn | US$131.63 bn (+16%) |
| India’s exports to China | US$19.26 bn | US$19.47 bn (+36.66%) |
About India-China trade data
China reports trade on a calendar-year basis (January-December), while India’s Commerce Ministry uses the April-March financial year, so the two sets of figures are not directly comparable. As per the Commerce Ministry, the deficit with China in FY 2025-26 was the highest ever. India has long pressed Beijing to open its markets for Indian IT services, pharmaceuticals and agricultural products, with limited results.
Exam angle
- Composition: China ships electronics, machinery and chemicals; India sends mainly primary goods.
- Note the growth rates: deficit +20.7%, total trade +25.4%, Indian exports +40.7%.
- Know the reporting difference: calendar year (China) versus financial year (India).