India and China are caught in a classic geopolitical paradox: pulling apart politically while growing closer economically.
Six years of border tensions, tighter investment scrutiny and mounting security concerns have done little to cool commercial reality.
Bilateral trade surged to a record $151.1 billion in FY26, with China overtaking the United States as India’s largest trading partner.
Indian exports to China jumped 36.6% to $19.47 billion while imports rose 16% to $131.63 billion.
That momentum has carried into FY27, with Indian exports rising nearly 26% year on year in April-May.
