China has emerged as India’s largest trading partner in the first three months of 2026, outpacing the US and consolidating its lead for the 11th consecutive month, according to official data and statements from Beijing.Chinese Ambassador to India Xu Feihong welcomed the development, stating that bilateral trade momentum continues to strengthen between the two neighbours. “Glad to know that China has become India’s largest trading partner in FY2026 — for the 11th straight month,” he said.Data for the April-February 2026 period shows that India-China trade stood at USD 137.0 billion, significantly ahead of the USD 127.8 billion recorded with the US, underscoring a widening gap of nearly USD 10 billion.The figures highlight the deep economic interdependence between Asia’s two largest economies. China continues to dominate in sectors such as electronics, machinery, and active pharmaceutical ingredients, where India remains heavily import-dependent.In contrast, while India-US trade remains robust, it has not kept pace with the surge in China-linked commerce. According to the US data, total goods trade between India and the United States stood at an estimated USD 149.4 billion in 2025. US exports to India rose to USD 45.6 billion, marking a 9.8 per cent increase over 2024, while imports from India climbed sharply to USD 103.8 billion, up 18.9 per cent year-on-year.However, the trade imbalance widened considerably, with the US goods trade deficit with India reaching $58.2 billion in 2025 — a 27.1 per cent increase compared to the previous year.Trade experts note that while India’s exports to the US are expanding rapidly, particularly in services-linked goods and manufacturing segments, China’s entrenched position in India’s supply chains continues to give it a structural advantage.With China as well, though trade volumes have grown exponentially, they have also led to the biggest single trade deficit India is running with any country.“India’s trade deficit concerns are two pronged. One is the actual size of the deficit. Two is the fact that the imbalance has continuously been widening year after year to reach USD 99.21 billion in 2024-2025,” said an official.The latest data is likely to reignite debate within policy circles in New Delhi over the risks of excessive dependence on Chinese imports, especially in strategic sectors, even as efforts to diversify supply chains and boost domestic manufacturing under initiatives like “Make in India” gather pace.