India–China Trade Hits record $155 billion as Diplomatic Engagement Deepens in 2025

• India–China bilateral trade reached a record $155 billion in 2025.

• Trade growth exceeded 12%, highlighting expanding economic engagement.

• China backed India’s BRICS presidency and stronger multilateral cooperation.

• Modi–Xi Tianjin meeting revitalized diplomatic and people-to-people ties.

• India’s exports to China rose nearly 10%, signaling growth potential.

Economic engagement between India and China reached an unprecedented milestone in 2025, with bilateral trade touching a record level of about $155 billion. The figure represents an annual growth of over 12%, underscoring the continued expansion of commercial ties between the two Asian giants, according to remarks made by Chinese Ambassador to India Xu Feihong.

Speaking at an event marking the Chinese New Year, the envoy said Beijing supports India’s presidency of BRICS and is keen to strengthen multilateral cooperation with New Delhi. He added that China is prepared to work closely with India to advance development priorities across the Global South, highlighting shared responsibilities in an increasingly interconnected world. His comments were reported by news agency PTI.

Ambassador Xu also pointed to high-level political engagement as a catalyst for the recent improvement in relations. He described the meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping in Tianjin last August as a turning point, noting that it helped inject new momentum into bilateral ties. According to him, the interaction paved the way for progress not only at the diplomatic level but also in people-to-people exchanges.

Recalling the meeting, Xu said it marked a transition in relations, taking them from a phase of recalibration toward a period of renewed cooperation. Since then, contacts between the two countries across multiple levels have become more frequent, he observed, contributing to a steady broadening of engagement.

Economic cooperation has been a key beneficiary of this shift. Xu highlighted that trade volumes surged to approximately $155.6 billion in 2025, reflecting robust growth compared to the previous year. He also noted that India’s exports to China increased by nearly 10%, a development he said points to untapped potential for deeper and more balanced trade ties.

Beyond commerce, the ambassador drew parallels between the development philosophies of the two nations. He said China’s emphasis on self-reliance resonates with India’s Atmanirbhar Bharat initiative, while Beijing’s vision of global harmony mirrors India’s principle of Vasudhaiva Kutumbakam, which views the world as one family.

Emphasizing cultural and strategic alignment, Xu said China is ready to collaborate with India by drawing on shared civilizational wisdom and reinforcing the understanding that both countries are partners rather than rivals. Aligning development strategies, he added, could help expand mutual gains and deliver outcomes beneficial to both sides.

Relations between New Delhi and Beijing have shown signs of steady improvement in recent months, following concerted efforts to restore ties that were badly affected by the Galwan Valley clashes in June 2020. That prolonged military standoff effectively concluded in October 2024, creating space for a gradual normalization of bilateral engagement.