India’s bilateral trade with China rose nearly 29 per cent year-on-year to $91.76 billion in April-September 2026-27, making Beijing India’s largest trading partner in the first half of the financial year, according to commerce ministry data.Two-way trade between India and China stood at $71.24 billion in the corresponding period of 2025-26.China moved ahead of the US, with India’s trade with Washington rising 16.5 per cent to $83.14 billion during the first six months of the current fiscal year, compared with $71.39 billion a year earlier.India’s exports to China increased 36 per cent to $11.41 billion during April-September, from $8.38 billion in the year-ago period. Imports from China grew 27.82 per cent to $80.34 billion, against $62.86 billion previously.The faster growth in imports widened India’s trade deficit with China to $68.93 billion in the first half of FY27, from $54.06 billion in the corresponding period last year, the data showed.
India-US trade rises, but surplus narrows
India’s bilateral trade with the US increased to $83.14 billion in April-September 2026-27 from $71.39 billion in the year-ago period.Exports to the US rose 11.11 per cent to $50.81 billion from $45.73 billion, while imports increased 25.98 per cent to $32.32 billion from $25.66 billion, according to the commerce ministry data.As imports grew faster than exports, India’s trade surplus with the US narrowed to $18.49 billion from $20.07 billion in the first half of 2025-26.Despite tariff-related disruptions, the US remained India’s largest merchandise export destination during the period. Commerce secretary Rajesh Agrawal said negotiations for the proposed India-US trade agreement were progressing in the right direction and that both sides were working to conclude it at the earliest.“The negotiations are in the right direction. Probably, we are in a very good zone. We anticipate closing the deal and signing it at the earliest possible time,” Agrawal said.He said the agreement would depend on the finalisation of the broader US tariff framework, with a parallel process underway under Section 301. India is seeking preferential access to the American market to help its exporters compete with those from other countries, he added.
India looks to rebuild trade ties with China
The increase in trade with China comes as New Delhi signals efforts to improve bilateral relations. Commerce and industry minister Piyush Goyal said on Wednesday that India was working to rebuild its relationship with China, but the last word on the process had not yet been scripted.Commerce secretary Rajesh Agrawal also said the two countries were in contact on trade-related issues.“There are discussions going on on both sides on trade issues also…constant discussions will help improve the trade ties between the two countries,” he told reporters, according to news agency PTI.
Exports rise across markets in first half of FY27
The commerce ministry data also showed substantial changes in India’s trade with other countries during April-September 2026-27.Exports to Singapore rose 103 per cent, while shipments to Tanzania increased 122.5 per cent. However, exports to the UAE, the Netherlands and Saudi Arabia declined.On the imports side, inbound shipments from Oman rose 210.9 per cent, while imports from Brazil increased sharply, with the data citing a rise of 143.13 per cent. Imports from the UAE, Saudi Arabia and Switzerland declined.Separately, India’s merchandise exports rose 23.04 per cent year-on-year to $44.4 billion in September, while imports increased 8 per cent to $74.61 billion, according to government data.The merchandise trade deficit narrowed to $30.21 billion in September from $33 billion a year earlier, although it widened from $26.86 billion in August.Cumulatively, merchandise exports rose 18.51 per cent to $259.89 billion during April-September 2026-27, while imports increased 16.31 per cent to $437.53 billion. The trade deficit for the first half of the fiscal year widened to $177.64 billion from $156.88 billion in the corresponding period of 2025-26.Agrawal said exports were maintaining their growth trend and expressed hope that merchandise exports could exceed $500 billion if the momentum continued. India’s merchandise exports stood at $442 billion in 2025-26.
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