India's trade deficit with China has gone past $100 billion for the first time, touching about $102 billion during FY 2025–26 (April–February).
- A trade deficit arises when a country's imports exceed its exports over a period.
- India buys high-value items from China such as electronics, machinery, telecom equipment and Active Pharmaceutical Ingredients (APIs).
- India's exports to China – mostly petroleum products, copper items and some electronics – are of lower value.
- The gap raises concerns over the current account deficit, dependence on Chinese imports in key sectors and limited market access.