India–China Trade Touches Record $155 Billion in 2025, Even as Political Ties Remain Uneasy

India and China recorded their highest-ever bilateral trade in 2025, with total commerce touching $155 billion, underscoring a growing economic interdependence that continues to defy persistent political and strategic tensions between the two Asian neighbours.

According to official data, trade volumes expanded despite unresolved border disputes, muted diplomatic engagement, and India’s stated push to reduce reliance on Chinese imports. The milestone reflects the resilience of commercial linkages, driven largely by India’s demand for Chinese-manufactured goods, electronics, machinery, pharmaceuticals, and intermediate industrial inputs.

However, the headline figure masks a deeply asymmetrical trade relationship. China remains India’s largest trading partner, but the balance is heavily skewed in Beijing’s favour. India’s trade deficit with China widened further in 2025, reinforcing concerns within New Delhi about supply chain dependence and domestic manufacturing competitiveness.

Indian exports to China. primarily iron ore, chemicals, agricultural commodities, and select engineering goods, saw only modest growth, while imports surged at a faster pace. This trend persists even as the Indian government promotes diversification strategies, import substitution, and production-linked incentive (PLI) schemes aimed at boosting local manufacturing.

The record trade numbers highlight a central contradiction in India–China relations: strategic mistrust coexisting with economic pragmatism. While political relations remain strained and high-level dialogue limited, business flows continue largely uninterrupted, suggesting that commercial compulsions, for now, outweigh geopolitical caution.