China Becomes India’s Top Trading Partner in FY2025-26, Overtakes United States

In the Financial year of 2025-2026 China has become the India’s top trading partner. With this China have surpassed the United States with the total bilateral trade reached to $151.1 billion. This marks the shift after the US hold the top position for the past four years. The development also highlights the growing economic ties between India and China despite the ongoing strategic and geopolitical challenges.

Trade Deficit With China Record High

As the trade has been rose but the India’s trade deficit with China has widened significantly with the $112.16 billion and which is the highest ever.

Also the imports from the China rose to $131.63 billion while the exports stood at only $19.47 billion and this difference in the numbers shows the clear imbalance.

This growing deficit reflects the India’s heavy dependence on the Chinese goods and specially in the sectors like electronics and machinery.

India’s Trade with the US

In comparison, India’s trade with the United States showed the trade surplus though it have declined slightly.

Exports to the US has reached at the $87.3 billion while the imports stood at the $52.9 billion and which resulted in the surplus of $34.4 billion.

This indicates the more balanced and favorable trade relationship while compared to China.

Export and Import Trends

India have recorded the strong export growth to China by rising by over 36% while the imports increased by around 16%.

Meanwhile the exports to several countries like Germany, UAE and Brazil have saw growth.

Also the some markets such as the UK and Bangladesh have experienced a decline.

On the import side India have saw increased imports from countries like Japan, Germany and UAE which is showcasing the changing global trade patterns.

Question

Q. Which country became India’s largest trading partner in FY 2025-26?

A. United States
B. China
C. UAE
D. Germany