India's trade deficit with China widens to nearly $100 billion

India's trade deficit with China surged to a record level in the fiscal year ended March 31, almost touching the $100 billion-mark, latest government data showed, even as officials fear that the Indian market may see a deluge of Chinese goods, with the US threatening a 245% tariff on imports from China.

- Rajeev Jayaswal

NEW DELHI:

India exported goods worth $14.25 billion to China in 2024-25, a 14.4% dip from $16.66 billion the previous financial year (2023-24), according to detailed trade data released by the commerce ministry on Wednesday.

In 2024-25, India imported Chinese merchandise worth $113.45 billion, a 11.5% jump from $101.73 billion imported the previous financial year. The data showed India's imports from China registered a robust double-digit growth while Indian exports to the country contracted, leading to a huge trade deficit of $99.2 billion.

At least two officials dealing with trade matters expressed concern that the US' huge retaliatory tariff on Chinese goods could see US-bound shipments diverting to other markets, including India, either directly or through a third country. The government has set up an import monitoring mechanism to take prompt and timely action against such dumping, they added, requesting anonymity. Besides China, imports from some of the 10 ASEAN countries would be under vigil as Chinese goods could use the bloc's free trade agreement with India to indirectly access the Indian market.