China trade with India grows, but deficit widens despite surge

India's trade with China has shown unexpected growth momentum in recent periods, marking a notable uptick in bilateral commerce between the two Asian giants. However, this expansion comes on the back of a modest baseline, offering little relief to New Delhi's persistent trade deficit with its northern neighbor.

The increase in bilateral trade volumes reflects rising imports of Chinese goods into Indian markets across various sectors. Yet this growth remains heavily skewed in China's favor, with Beijing's exports to India substantially outpacing Indian shipments to Chinese markets. The asymmetry underscores structural challenges in the trade relationship between the two nations.

Analysts note that while the overall trade figures show movement, the fundamental imbalance persists largely unaddressed. India's trade deficit with China remains among the largest bilateral deficits the country faces globally, reflecting India's heavy reliance on Chinese imports ranging from electronics to raw materials.

The development comes amid broader efforts by New Delhi to diversify its trade partnerships and reduce dependency on single trading partners. Indian policymakers have been working to boost domestic manufacturing and seek alternative suppliers, though progress in narrowing the China deficit has remained elusive. The widening gap continues to draw scrutiny from both government and business circles in India.