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As of the year 2025-26, China has regained its leading status as India's largest trading partner after four years in a row, replacing the United States. Government data show that bilateral trade between India and China was at an all-time high of 151.1 billion.

The export of India to China was decreased from 36.66 to 19.47 billion, whereas imports were increased from 16 to 131.63 billion. This propelled the trade deficit of China to an all-time high of 112.16 billion, which is compared to the prior position of 99.2 billion.

The US fell behind by a trade volume of approximately $140.2 billion and a decline in the surplus of $34.4 billion. In major industries such as electronics, machinery, and active pharmaceutical ingredients, China is now on the frontlines, with India largely a heavily imported industry.

Leading analysts observe that although the change illuminates robust economic relations, the growing deficit creates issues over the dependence on imports and the imperative to keep up manufacturing domestically, as witnessed in programs such as Atmanirbhar Bharat.