India-China Trade Deficit to Hit $106 Billion by 2025: GTRI Warns

• India's trade deficit with China is projected to reach $106 billion in 2025, up from $94.5 billion in 2024, as imports outpace exports.
• Exports to China have largely stagnated, falling from $23 billion in 2021 to an estimated $17.5 billion in 2025, while imports surged from $87.7 billion in 2021 to an estimated $123.5 billion in 2025.
• GTRI highlights that nearly 80% of India's imports from China are concentrated in electronics, machinery, organic chemicals, and plastics, making quick substitution difficult.
• Minister Jitin Prasada stated the deficit is due to essential imports like raw materials, intermediate goods, and capital goods, crucial for India's manufacturing and exports.
• An Inter-Ministerial Committee has been formed to address the trade imbalance, while recent data shows a positive trend with India's exports to China rising 90% in November.

Why It Matters: India's trade deficit with China is set to widen significantly by 2025 due to surging imports of critical goods.