India’s exports to China jumped to $2.2 billion in November 2025, up 90 per cent from a year earlier. A widening trade deficit with China may exert pressure on India’s overall external trade numbers and have a bearing on the currency movement. India’s exports to China fell from $23 billion in 2021 to $15.2 billion in 2022 and stayed low through 2024. “This has pushed India’s trade deficit with China from $64.7 billion in 2021 to $94.5 billion in 2024, and an expected $106 billion in 2025,” Srivastava observed. In contrast, India’s exports to China are driven by petrochemical by-product naphtha, iron ore and shrimp.

Source: The Telegraph December 20, 2025 05:10 UTC