Answer: China
Notes: China has become India’s largest trading partner in 2025–26, surpassing the United States after four years. India–China bilateral trade reached $151.1 billion, with a record trade deficit of about $112 billion in China’s favour. India’s exports to China rose by 36.66% to $19.47 billion, while imports increased to $131.63 billion, widening the deficit. With the United States, India’s exports grew marginally to $87.3 billion, while imports rose to $52.9 billion, reducing the trade surplus. India recorded negative export growth with partners like Netherlands, UK, Singapore, Bangladesh, and Saudi Arabia. Positive export growth was seen with UAE, Germany, Italy, Brazil, Spain, and Vietnam.
