China has overtaken the United States to become India’s largest trading partner in the 2025-26 financial year, according to Beijing’s embassy in India. Bilateral trade between the two Asian giants reached $137 billion between April 2025 and February 2026, surpassing India’s trade with the United States, which stood at $127.8 billion during the same period. Xu Feihong, China’s ambassador in New Delhi, highlighted the milestone on social media, noting that China has held the top trading position for 11 consecutive months.
The development marks a significant shift, as the United States had been India’s largest trading partner for four consecutive years until 2024-25. Chinese officials have emphasized that bilateral trade will remain resilient despite global uncertainties. Qin Jie, China’s consul general in Mumbai, stated that the robust economic relationship reflects the scale and stability of both economies and their commitment to multilateral trade and cultural exchange.
The rise of China as India’s leading trade partner comes amid a complex backdrop of trade tensions between New Delhi and Washington. In August 2025, the US imposed 50% tariffs on certain Indian imports, including punitive measures related to India’s purchases of Russian oil. An interim trade deal announced in February 2026 reduced these tariffs to 18%, but negotiations stalled following a US Supreme Court ruling that struck down key Trump-era tariffs.
Meanwhile, India has pursued broader trade diversification, signing agreements with the European Union, the United Kingdom, Oman, and New Zealand over the past year. The surge in trade with China underscores a strategic pivot in India’s economic partnerships and highlights shifting dynamics in global trade flows.
