India’s trade deficit with China has surged to a record $99.2 billion in fiscal year 2024/25, largely due to increased imports of electronics and consumer durables. Concerns over dumping and economic dependencies are growing.
India’s trade deficit with China has reached an all-time high of $99.2 billion for the fiscal year 2024/25, reflecting a substantial increase in imports, particularly in electronics and consumer durables. According to trade data, the widening gap is attributed to growing demand for Chinese products in India, even as concerns over potential economic dependencies and the re-routing of Chinese exports through other countries, such as in response to rising U.S. tariffs, continue to mount.
In the wake of these developments, experts warn of the risks of India becoming more reliant on Chinese goods, with fears of Chinese exports being diverted to bypass the U.S. tariffs. The Indian government has expressed concerns and is closely monitoring the situation to prevent dumping practices that could further disturb the local manufacturing industry.
Trade between India and China has been a point of contention for years, with India continuously seeking to balance the flow of imports and the health of its domestic industries. The recent surge in imports, particularly consumer electronics and other durables, underscores the growing demand for Chinese products in India, which poses challenges for the country’s trade balance.
In response to the surge in imports, India is also exploring measures to address potential dumping concerns, as trade experts caution about the long-term economic impact on India’s industries.
