India Courts Chinese Firms as Bilateral Trade Hits Record $151 Billion

• Ambassador Vikram Doraiswami met Chinese firms to deepen commercial ties.

• China became India’s top trading partner in FY26 with $151.1 billion trade.

• India’s exports to China surged 36.66% to $19.47 billion.

• Trade deficit widened to $112.16 billion.

• India pushes for better access for pharma, IT and farm exports.

India’s envoy to China, Vikram Doraiswami, has stepped up outreach to leading Chinese companies, signaling New Delhi’s intent to reinvigorate business engagement between the two nations. During a luncheon meeting held on July 7, the ambassador interacted with senior executives and long-standing supporters of India-China ties, reiterating the embassy’s commitment to supporting stronger commercial partnerships.

According to a statement shared by the Indian Embassy on social media platform X, Doraiswami exchanged perspectives with corporate leaders and assured them that the mission stands ready to assist businesses seeking opportunities in India. The initiative comes at a time when economic relations between the two Asian giants are regaining momentum.

The renewed engagement follows fresh trade data showing that China surpassed the United States to become India’s largest trading partner in the financial year 2025–26. Bilateral trade between the two countries climbed to $151.1 billion, reflecting the scale and complexity of their economic interdependence.

Earlier this month, Doraiswami publicly emphasized that Chinese investments could play a constructive role in stabilizing and strengthening the broader bilateral relationship. He noted that as ties gradually move toward normalization, the Government of India has introduced measures aimed at reopening avenues for Chinese enterprises to invest in the Indian market. The comments were widely interpreted as a reference to the easing of regulatory restrictions that had tightened in recent years.

Addressing a panel discussion at the World Peace Forum hosted by Tsinghua University, the ambassador underscored the embassy’s willingness not only to facilitate investments but also to address concerns raised by Chinese firms. He indicated that Indian authorities are prepared to provide greater support and guidance to companies exploring opportunities in India.

Beyond investment flows, Doraiswami also advocated for enhanced trade balance through stronger Indian exports, particularly in the pharmaceutical sector. He highlighted the potential mutual gains from expanding access for India’s high-quality generic medicines to the Chinese market. These products already serve major markets such as the United States and other global destinations, and India hopes similar pathways can be created in China.

In parallel, the ambassador recently met Wang Liping, Director General of the Department of Asian Affairs at China’s Ministry of Commerce. Their discussions focused on identifying measures that could further stimulate two-way trade and address existing bottlenecks.

Trade statistics underscore both the progress and the imbalance in the relationship. India’s exports to China jumped 36.66% to $19.47 billion in FY26, demonstrating robust growth in outbound shipments. Imports from China also increased, rising 16% to $131.63 billion. As a result, India’s trade deficit with China widened to a record $112.16 billion, compared with $99.2 billion in the previous fiscal year.

Despite repeated appeals from New Delhi for improved access for its information technology services, pharmaceuticals and agricultural goods, tangible breakthroughs have remained limited. Nevertheless, ongoing diplomatic and commercial engagement suggests that both sides recognize trade and investment as pivotal pillars of their broader relationship.

With trade volumes at historic highs and official outreach intensifying, the coming months may determine whether economic cooperation can serve as a stabilizing force in India-China relations.