India-China Trade Reaches Record USD 155 Billion

India–China economic relations have entered a renewed phase of engagement, with bilateral trade touching a historic high in 2025. The milestone reflects a gradual stabilisation of ties after years of diplomatic strain, alongside expanding commercial linkages between Asia’s two largest economies. Chinese officials have described the trajectory as a “new level of improvement”, signalling cautious optimism in bilateral relations.

Record Growth in Bilateral Trade

India–China bilateral trade reached USD 155.6 billion in 2025, marking a year-on-year growth of over 12 per cent. The figure represents the highest trade volume recorded between the two countries. India’s exports to China rose by 9.7 per cent during the year, underlining growing demand for Indian goods despite persistent trade imbalances. The data highlights the expanding scale of economic interdependence amid broader geopolitical complexities.

Diplomatic Signals and Leadership Engagement

The improvement in ties follows a high-level meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping in Tianjin in August 2025. According to Chinese officials, the meeting marked a shift from a “reset and fresh start” towards sustained engagement. Exchanges at diplomatic, economic, and institutional levels have since increased, contributing to greater policy coordination.

Multilateral Cooperation and Global South Focus

China has reiterated its support for India’s presidency of BRICS and expressed readiness to strengthen coordination on multilateral platforms. Emphasis has been placed on aligning development strategies to expand mutual economic benefits. Both sides have highlighted cooperation in support of the Global South, positioning India–China engagement within a broader framework of emerging economy leadership.

Important Facts for Exams

• India–China bilateral trade crossed USD 155 billion in 2025, the highest ever recorded.
• India’s exports to China grew by nearly 10 per cent year-on-year.
• The Tianjin meeting in August 2025 marked a diplomatic reset in bilateral relations.
• China has publicly supported India’s BRICS presidency.

Economic Potential and Strategic Caution

Chinese officials have stressed the need for closer alignment of development strategies to further expand economic cooperation. While trade growth underscores strong commercial complementarities, strategic caution continues to shape engagement. The emphasis remains on stability, predictability, and gradual confidence-building as both countries navigate competition alongside cooperation in regional and global affairs.