Current Affairs - Economy - Discussion

In FY 2025–26, China emerged as India’s top trading partner, surpassing the United States after four years. The total bilateral trade between India and China reached $151.1 billion, reflecting strong economic engagement despite geopolitical tensions. However, this growth also highlighted a significant trade imbalance, with India’s imports from China far exceeding its exports. The surge in imports, especially in sectors like electronics and machinery, contributed to a record-high trade deficit. This development underscores the evolving dynamics of global trade and India’s increasing reliance on Chinese goods.