FY25 trade deficit with China close to $100 bn amid dumping concerns

US remains India's largest trade partner

- SHREYA NANDI

India's trade deficit with China neared $100 billion in FY25, amid escalating concerns of dumping, data released by the commerce department on Wednesday showed.

Chinese imports rose by 11.5 per cent to $113.45 billion, while outbound shipments to the neighbouring country saw 14.5 per cent contraction to $14.2 billion. As a result, the trade deficit with China widened to $99.2 billion in FY25 from $85 billion a year ago. The sharp rise in imports from China has sparked fresh concerns amid the intensifying trade war between Washington and Beijing. Both the countries are slapping more than 100 per cent tariffs on each other. The Indian government fears that escalating costs in the American market may prompt exporters — particularly from countries like China — to divert their shipments to India. This could potentially trigger a surge in imports and put pressure on domestic industries.

Even during March, imports from China grew by a fourth at $9.67 billion, while exports declined by nearly 3 per cent to $1.5 billion.