India's Trade Deficit with China Surges to Record $112bn Despite Diplomatic Thaw
India’s trade deficit with China has ballooned to $112 billion this year, driven by a heavy reliance on Chinese industrial components rather than finished goods. While diplomatic ties have improved following the 2025 border de-escalation, economic dependence remains acute. Experts warn that without significant shifts in domestic manufacturing capabilities and reciprocal market access, India’s growing export sector may inadvertently deepen its vulnerability to Beijing’s supply chains.