Finance Minister Nirmala Sitharaman told the Atlantic Council that India’s trade deficit with China widened to $105.93 billion in the first nine months of 2026, a 20.7 percent jump from the same period a year earlier.
She cited non‑tariff barriers—phytosanitary rules, import licensing and quality‑control checks—as the main impediment to Indian exports, especially in generic drugs, perishable foods and livestock products.
China’s foreign ministry spokesperson Mao Ning responded on Friday, saying Beijing was ready to work with New Delhi to resolve ‘each other’s economic and trade concerns in a balanced way’ and that questions should be directed to relevant authorities.
Sitharaman stressed that India prefers negotiation over punitive tariffs, noting that even a 40.7 percent rise in Indian exports to China still leaves a heavy imbalance because Chinese imports dwarf Indian exports.
Both sides have signaled a willingness to enhance dialogue; commerce secretary Rajesh Agrawal said discussions are ongoing, and a bilateral trade forum is expected to take place in the coming weeks to tackle the barriers.