India China Trade
As of 2023-24, China was India’s fourth-largest trading partner in export.
Last updated: Feb, 2025
Introduction
The relationship between the two giants of Asia, and the world, has been progressing at a tremendous pace. On April 1, 1950, India became the first non-socialist bloc country to establish diplomatic relations with the People’s Republic of China. A Double Taxation Agreement was signed between India and China on July 18, 1994. The two countries have also shown interest in taking part in a multilateral trade system as per the WTO commitments. Today, India and China are top trading partners and maintain significant economic and bilateral relations.
India-China Trade
- Bilateral trade between India and China in FY24 stood at US$ 118.40 billion against US$ 113.83 billion in FY23 with a growth of 4%.
- According to the latest data from the Global Trade Research Initiative (GTRI), In FY24, China has once again become India’s top trading partner, surpassing the United States after a two-year gap.
- In FY24, China had a 15.06% share in India's total imports. India imported goods worth US$ 675.42 billion from the world, including goods worth US$ 101.74 billion from China.
- China occupies the 22nd position in FDI equity inflows into India with a cumulative FDI amount of US$ 2.50 billion from April 2000-September 2024.
Major exported items from India to China with amount & quantity
- India exported 4,186 commodities to China in FY24.
- India’s export to China stood at US$ 16.65 billion in FY24 and US$ 15.30 billion in FY23.
- Major exported items from India to China include Iron ores (US$ 3.63 billion), followed by Engineering Goods (US$ 2.65 billion), Marine Products (US$ 1.37 billion), Organic and Inorganic Chemicals (US$ 1.23 billion), Petroleum Products (US$ 1.16 billion), etc. in FY24.
- Major exported items from India to China include ores, slag and ash (US$ 1.22 billion), mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes (US$ 846.93 million), organic chemicals (US$ 835.63 million), fish and crustaceans, molluscs and other aquatic invertebrates (US$ 801.62 million), nuclear reactors, boilers, machinery and mechanical appliances; parts thereof (US$ 774.96 million) during April-November 2024.
- India’s export to China stood at US$ 9.20 billion during April-November 2024.
Major imported items by India from China with amount & quantity
- India imported 7,521 commodities from China in FY24.
- Imports from China to India stood at US$ 101.74 billion in FY24 and US$ 98.50 billion in FY23.
- Major items imported from China include electrical machinery and equipment (US$ 31.35 billion), followed by nuclear reactors and parts (US$ 22.47 billion), organic chemicals (US$ 11.49 billion), plastic and articles (US$ 5.66 billion), and fertilizers (US$ 2.25 billion) etc. in FY24.
- Major items imported from China include electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts (US$ 24.44 billion), nuclear reactors, boilers, machinery and mechanical appliances; parts thereof (US$ 16.98 billion), organic chemicals (US$ 7.75 billion), plastic and articles thereof (US$ 4.2 billion), iron and steel (US$ 1.8 billion) during April-November 2024.
- Imports from China to India stood at US$ 74.41 billion during April 2024.
Recent Trends and Developments
- In July 2024, Syama Prasad Mookerjee Port, Kolkata, in partnership with Pacific International Lines (PIL), has inaugurated the China Calcutta Service (CCS) at the Kolkata Dock System. This direct weekly service from China to Kolkata aims to reduce transit times from Far East Ports, enhancing connectivity and efficiency for stakeholders.
- As of September 15, 2022, 33 projects (25 Sovereign, 11 Non-Sovereign) have been approved for financing of US$ 8.75 billion.
- New Development Bank (NDB) which has established its office in Shanghai, opened its India Regional Office in Gujarat International Finance Tec-City in June 2022. India is the biggest borrower in NDB with 19 projects approved with a commitment of US$ 6.92 billion as on August 31, 2022.
- A bilateral meeting between India and China was held at the third G20 Finance Ministers and Central Bank Governors (FMCBG) meeting at Gandhinagar on July 18, 2023. During the meeting, Union Finance Minister Ms. Nirmala Sitharaman met Mr. Liu Kun, Minister of Finance, People’s Republic of China. The Ministers discussed G20 Finance agenda and the state of their economies, inflation, and trade and recognized the importance of a good business environment for economic growth and development.
Investments and Economic Relations
- The bilateral trade between India and China has grown four-fold in the past decade. The India-China trade crossed US$ 100 billion for the third consecutive year as it amounted to US$ 118.40 billion in FY24.
- As of September 2024, China was ranked as the 22nd largest foreign investor in India, having made cumulative investments amounting to US$ 2.50 billion since April 2000. China investments constitute approximately 0.35% of the total foreign direct investment (FDI) inflow into India.
- With increasing bilateral trade in the last few years, many Indian companies have started setting up Chinese operations to service both their Indian and MNC clientele in China. Apart from this, more than 100 Chinese companies have established offices/operations in India. Many big Chinese names in the field of machinery and infrastructure construction have won projects in India and have opened project offices in India.
Conclusion
China has already been the top trading partner of India in recent times. The economic relationship between the two countries is one of the most significant bilateral relations in the contemporary global economic scenario. India has also made sustained efforts to achieve a more balanced trade with China, including bilateral engagements to address the non-tariff barriers on Indian exports to China. With the great exchange of goods and services, the two nations have been moving forward at an incredible pace and represent the most dynamic economies which are emerging as new trendsetters in international relations.
Contacts
- Embassy of India, Beijing, China
Address: No.5, Liang Ma Qiao Bei Jie,
Chaoyang, District, Beijing 100600 China
Tel: +86-10-8531 2500/2501/2502/2503
Website - www.eoibeijing.gov.in
Mr. Pradeep Kumar Rawat (Ambassador)
Contact: amboffice.beijing@mea.gov.in
Ms. T. Angeline Premalatha (Counsellor)
Contact: pr.scooffice@mea.gov.in
Mr. Abhishek Shukla (Deputy Chief of Mission)
Contact: dcmoffice.beijing@mea.gov.in - Embassy of China in India
Ambassador: Xu Feihong
Address: 50-D, Shantipath, Chanakyapuri, New Delhi-1
Email: chinaemb_in@mfa.gov.cn
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