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Modi, Xi Jinping to Discuss India-China Trade Imbalance
Narendra Modi and Xi Jinping are expected to talk about trade between India and China.
Their meeting is planned for Saturday evening in New Delhi.
India buys much more from China than it sells to China.
This gap grew to $112.16 billion in 2025-26.
India’s exports to China also increased during that year.
Many Chinese imports are parts and machines used by Indian factories.
China supplies a large share of India’s electronics, machinery, and computer imports.
The two countries may discuss how to make their trade more balanced and reliable.
Prime Minister Narendra Modi and Chinese President Xi Jinping are scheduled to meet in New Delhi on Saturday evening.
The leaders are expected to discuss bilateral trade and investment, especially India’s growing trade deficit with China.
India’s exports to China rose 36.62% to $19.47 billion in 2025-26, while imports rose 16.03% to $131.63 billion.
India’s trade deficit with China increased to $112.16 billion in 2025-26 from $99.21 billion the previous year.
Electronics, machinery, computers, and organic chemicals make up roughly 66% of India’s imports from China, creating supply-chain vulnerabilities.
- Who
- Prime Minister Narendra Modi and Chinese President Xi Jinping.
- What
- A meeting focused on India-China bilateral trade, investment, and India’s trade deficit.
- Where
- New Delhi, India.
- When
- Saturday evening; the article identifies the figures as covering 2025-26.
- Why
- To address India’s growing trade imbalance and the importance of Chinese industrial inputs to Indian manufacturing and supply chains.
Trade-Balance Concerns
Industrial-Input Perspective
Growing deficit
Trade-Balance Concerns
India’s trade deficit with China has expanded substantially, reaching $112.16 billion in 2025-26 and raising concerns about creating more balanced trade.
Industrial-Input Perspective
The deficit partly reflects imports of industrial inputs, components, and capital goods used by Indian manufacturers rather than only consumer products.
Supply-chain dependence
Trade-Balance Concerns
India’s reliance on China for electronics, machinery, computers, and critical minerals creates vulnerabilities for renewable energy, electric vehicle, and defence supply chains.
Industrial-Input Perspective
These imports are described as important inputs that help Indian manufacturers produce goods and create jobs.
Key facts
- India’s exports to China
- $19.47 billion in 2025-26, up 36.62% from $14.25 billion.
- India’s imports from China
- $131.63 billion in 2025-26, up 16.03% from $113.46 billion.
- Trade deficit
- $112.16 billion in 2025-26, compared with $99.21 billion in 2024-25.
- Total merchandise trade
- $151.10 billion in 2025-26, up 18.31%.
- Largest trading partner
- China became India’s largest trading partner, overtaking the United States.
- Major import sectors
- Electronics, machinery, computers, and organic chemicals account for roughly 66% of imports from China.
- Supply-chain exposure
- China supplies around 43% of India’s electronics imports and 40% of machinery and computer imports.
Sources
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