“India’s relationship with China is economically consequential, politically sensitive, and strategically constrained. In FY2024–25, India–China merchandise trade was valued at US$127.7 billion, with India importing US$113.5 billion and exporting only US$14.3 billion. The resulting deficit, at around US$99.2 billion, was the highest India has ever recorded with any single country. These figures highlight how deeply Chinese goods, machinery, components, and intermediates remain embedded in India’s industrial system. Electronics, chemicals, machinery, pharmaceuticals, renewable-energy equipment, batteries, and a range of manufacturing inputs continue to move through China-linked supply chains before reaching Indian factories and consumers. China also accounts for roughly 16 percent of India’s total imports in FY 2024-25, making it India’s largest import source. These trends suggest that this relationship should be viewed as both an economic reality and a strategic problem.”
“India’s limited stabilisation with China should not be seen as a drift away from the United States (US), but as part of its broader strategy of preserving strategic autonomy while expanding domestic capabilities and external partnerships…”