India is pushing for more balanced trade with China as momentum builds in the bilateral relationship, commerce secretary Rajesh Agrawal has said, underlining New Delhi’s concerns over the widening trade gap.

Both countries have emphasised the need to address each other’s concerns, including what officials have described as structural trade imbalance and supply chain issues.

The Scale of the Imbalance

India runs a large and persistent trade deficit with China, importing far more than it exports. Electronics, machinery, chemicals and active pharmaceutical ingredients dominate the import basket, while Indian exports to China remain narrow in scope.

New Delhi has argued that the imbalance reflects structural barriers rather than a lack of competitiveness, and has pressed Beijing to open its markets wider to Indian goods and services, particularly in sectors such as pharmaceuticals and IT where Indian firms are globally competitive.

Why the Timing Matters

The comments come amid a broader thaw in India-China ties, with high-level engagement resuming after years of strain. Trade is emerging as a central pillar of the renewed dialogue, alongside border and security issues.

For Indian policymakers, balanced trade is not just an economic objective but a strategic one. Reducing dependence on Chinese imports in critical sectors is seen as essential for supply chain resilience. Whether Beijing responds with meaningful market access will be the real test of the current momentum in the relationship.

The push for balance also fits into India’s broader trade strategy, which has sought to diversify both imports and export markets. Policymakers have encouraged domestic manufacturing through production-linked incentive schemes partly to reduce reliance on Chinese inputs in sectors such as electronics and pharmaceuticals. At the same time, Indian exporters complain that non-tariff barriers in China keep their goods out, from lengthy approval processes for drug firms to opaque standards for farm products. Agrawal’s remarks suggest New Delhi will keep pressing these issues in bilateral forums, even as it engages with Beijing on the larger project of stabilising ties.