India’s trade with the US hit $131.84 billion in FY25, making it the top partner for the fourth straight year. Meanwhile, trade with China rose to $127.7 billion, but with a growing imbalance. India’s trade deficit with China jumped 17%, sparking concerns ahead of looming tariff impacts and possible goods dumping.

BulletsIn

• US top trading partner for India in FY25 at $131.84 billion
• Fourth consecutive year US holds this position
• China second at $127.7 billion in FY25, up from $118.4 billion
• India’s exports to China fell 14.5% to $14.25 billion
• Imports from China rose 11.5% to $113.45 billion
• Trade deficit with China widened 17% to $99.2 billion
• US tariffs on Chinese goods (up to 145%) not fully felt yet
• Risk of China dumping cheap goods into Indian market
• Tariffs initially announced by Trump paused temporarily
• Pressure on India to manage trade ties amid global shifts