India’s bilateral trade with China saw a significant rebound during the first half of the current financial year, with total volume rising by nearly 29 percent compared to the same period last year. According to data released by the Union Ministry of Commerce, the trade value between the two nations reached $91.76 billion for the April-September period of 2026-27, up from $71.24 billion recorded in the first half of the 2025-26 fiscal year. This growth effectively pushed Beijing ahead of Washington as India’s largest trading partner during the initial six months of the fiscal year.
While trade with China expanded rapidly, economic activity between India and the United States also maintained a positive trajectory. Two-way trade with the US grew by 16.5 percent, reaching $83.14 billion in the first half of FY27, compared to $71.39 billion in the previous year. Despite this increase, India’s trade surplus with the US narrowed to $18.49 billion, down from $20.07 billion a year earlier, as growth in imports from the American market outpaced the rise in exports.
A detailed breakdown of the commerce ministry data highlights that India’s exports to China climbed by 36 percent to $11.41 billion. However, imports from China surged by 27.82 percent to reach $80.34 billion, leading to a wider trade deficit of $68.93 billion. In contrast, India’s merchandise exports to the US grew by 11.11 percent to $50.81 billion, while imports increased by approximately 26 percent to $32.32 billion.
The shift in trade dynamics comes against the backdrop of official efforts by New Delhi to reset relations with Beijing. Commerce and Industry Minister Piyush Goyal stated recently that India is actively working to rebuild its bilateral relationship with China. Furthermore, Commerce Secretary Rajesh Agrawal confirmed that representatives from both nations are in constant contact, engaging in discussions regarding trade-related issues to foster better economic ties.
Regarding the ongoing engagement with the US, Secretary Agrawal noted that negotiations for a proposed trade agreement are moving in the right direction. He indicated that officials are working toward a timely conclusion of the deal, which remains subject to the finalization of broader US tariff frameworks. India is reportedly seeking preferential market access to ensure its exporters remain competitive on the global stage.
Beyond the major economies, India’s trade performance remained diverse across global markets. Exports to Singapore saw a significant uptick of 103 percent, while shipments to Tanzania grew by 122.5 percent. Conversely, exports to regions including the UAE, the Netherlands, and Saudi Arabia experienced a decline. On the import front, shipments from Oman surged by 210.9 percent, and imports from Brazil saw a sharp increase of over 143 percent, while arrivals from the UAE, Saudi Arabia, and Switzerland recorded a drop.
Nationally, India’s merchandise exports rose by 18.51 percent to $259.89 billion for the first half of the fiscal year, with total imports increasing by 16.31 percent to $437.53 billion. While the cumulative trade deficit for the first half of the year widened to $177.64 billion from $156.88 billion in the previous year, officials remain optimistic. Secretary Agrawal suggested that if the current growth momentum persists, India’s annual merchandise exports could potentially surpass the $500 billion mark by the end of the fiscal year.
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