India’s trade deficit with China has hit a new high-almost touching $100 billion. In the 2024–25 financial year, India imported goods worth $113.45 billion from China, which is a big jump from the year before. But exports? They dropped sharply to just $14.25 billion. That means we’re spending a lot more on buying things from China than we’re earning by selling to them.

What are we importing? Everything from electronics, electric vehicle batteries, and solar panels to machinery and chemicals. Experts say this shows how much we depend on Chinese products for key industries. Even our own government schemes like the PLI (Production Linked Incentive), meant to boost Indian manufacturing, rely heavily on parts and materials made in China. That’s a real problem.

Now, there’s another twist. The US just slapped a 245% tariff on Chinese goods. That means Chinese companies will look for new markets-and India could become one of them. Officials are worried. There’s talk of Chinese goods being rerouted into India through ASEAN countries using free trade deals. The government has started monitoring imports more closely to prevent a flood of cheap goods.

China has informally offered to fix the imbalance by buying more Indian products. But experts warn that’s not enough. India needs to build strong, self-reliant supply chains and boost competitiveness. This isn’t just about trade numbers anymore. It’s about long-term economic strength. Because without strong manufacturing at home, we’ll keep losing ground-and the gap will only grow.