Immense disparity in trade volumes drive deficit with China past $100 billion mark

India’s trade deficit with China has officially crossed the $100 billion threshold during the first nine months of the year, driven by a continuous surge in inbound shipments. According to trade data released by China’s General Administration of Customs, total two-way commerce expanded significantly, with Indian imports rising to over $125 billion. Although Indian exports experienced an impressive growth rate of more than 40%, the immense disparity in trade volumes has resulted in a widening deficit of $105.93 billion. The Indian government, including Prime Minister Mr Narendra Modi and External Affairs Minister Mr S. Jaishankar, have repeatedly raised concerns regarding this structural imbalance during high-level diplomatic and bilateral meetings with Beijing. Economic analysts emphasise that addressing market access barriers and enhancing domestic manufacturing capabilities remain critical to reducing this heavy reliance, as per a report.

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