Whalesbook
China Becomes India's Top Trade Partner Again
China has reclaimed its position as India's leading trading partner in fiscal year 2025-26. This marks a return to a role China last held between fiscal years 2013-14 and 2017-18, and again in 2020-21. The surge in bilateral trade was largely driven by a significant 36.66% increase in India's exports to China, which reached $19.47 billion. However, imports from China also saw a substantial 16% rise to $131.63 billion, contributing to the record trade imbalance.
India's Trade with the U.S.
In contrast, India's trade relationship with the United States showed a different trend. Exports to the U.S. experienced only marginal growth of 0.92%, totaling $87.3 billion in the last fiscal year. Imports from the U.S. increased by a more notable 15.95% to $52.9 billion. As a result, India's trade surplus with the U.S. narrowed considerably to $34.4 billion, down from $40.89 billion in the preceding fiscal year. The U.S. had been India's largest trading partner for the four fiscal years leading up to 2024-25.
Export Performance Beyond Top Partners
Beyond China and the U.S., India recorded negative export growth in FY26 with several other key partners, including the Netherlands, the United Kingdom, Singapore, and Australia. Conversely, the country saw significant positive export growth in shipments to the UAE, Germany, and Brazil, among other destinations.
Key Import Trends
On the import side, India noted negative growth from suppliers like Russia, Iraq, and Indonesia. However, positive import growth was registered from traditional partners including the UAE, Saudi Arabia, Japan, and South Korea. This intricate network of trade relationships highlights China's growing influence, presenting both new challenges and opportunities for India's economy.