Modi’s China Mission Gets Tough: India Faces $99 Billion Trade Deficit

Business News: In the last five years, there has been a significant increase in trade relations between India and China. However, this increase did not prove to be very beneficial for India, as during this period India suffered huge losses. The latest figures show that India's trade deficit with China has increased to more than $99 billion.

Changing picture after the pandemic

When the whole world was looking for an alternative to China after Covid-19, India was considered a reliable option. Many countries, including the US, had hoped that India could become a major economic power in place of China. But the situation proved to be the opposite. Trade between India and China not only continued but increased even more.

US tariffs and new equations

The high tariffs imposed by the US have created tensions in India-US relations. This is the reason why India has started giving new importance to dialogue with China. Prime Minister Narendra Modi has arrived on a visit to China after almost seven years, where he is meeting President Xi Jinping. In this visit, along with discussions on trade agreements between the two countries, measures to get out of US tariffs will also be considered.

China's stance and diplomacy

Some time ago, the Chinese Foreign Minister visited India. During this visit, the two countries agreed on many issues, which indicates that Beijing is also keen to improve relations with India. Experts say that the deepening dispute between America and China has brought India and China closer again.

Trade increased despite the Galwan dispute

After the Galwan Valley conflict, the demand for a boycott of Chinese products intensified in India. Many apps were banned, and consumers tried to distance themselves from Chinese goods. But the figures show that despite this, trade between India and China increased further. Imports from China increased rapidly, while India's exports decreased. The result was that the trade between the two countries reached around $128 billion in FY 2025, in which India suffered a loss of more than $99 billion.

Challenges facing India

The biggest challenge for India is how to stop its growing deficit. Experts suggest that India will have to strengthen domestic industries, promote exports, and focus on new markets. Only then will dependence on China decrease and the economic balance be in India's favor.