India’s China Trade Gap Swells to $151 Billion as Import Dependence Deepens
Updated
Updated · The New York Times · Sep 12
India’s China Trade Gap Swells to $151 Billion as Import Dependence Deepens
1 articles · Updated · The New York Times · Sep 12
Summary
$151 billion in annual two-way trade has left India buying about seven times more from China than it sells there, underscoring a widening imbalance despite years of efforts to cut reliance.
Chinese machinery, electronic components, rare-earth magnets and pharmaceutical ingredients remain embedded in Indian factories, making Beijing central to India’s manufacturing and industrial expansion.
That dependence now carries added costs: pricier Chinese imports are widening India’s overall trade deficit and pressuring the rupee as the U.S.-Israeli war with Iran lifts energy prices.
The imbalance has deepened even after a 2020 Himalayan border clash killed at least 24 soldiers and froze high-level diplomacy; Xi Jinping is due in India on Saturday for his first visit in more than six years.
India’s struggle mirrors broader global concern over China’s export dominance after Beijing posted a record trade surplus of nearly $1.2 trillion last year.