India Targets Major Export Growth in China and ASEAN Markets
India is positioning itself to become a major exporter of goods and services to China and the Association of Southeast Asian Nations (ASEAN) region, according to Commerce and Industry Minister Piyush Goyal. Speaking during an official visit to The Hague, Goyal stated that New Delhi seeks to open international markets on a reciprocal basis while managing bilateral trade ties through established legal and judicial frameworks.
Hague: Commerce and Industry Minister #PiyushGoyal has expressed hope that India would emerge as a major exporter of goods and services to China and the #ASEAN region in the coming years. Goyal said he held meetings with his Chinese counterpart in Yaounde, Cameroon, and in New…
The strategic push comes against the backdrop of a widening trade deficit and recent diplomatic efforts by both nations to rebuild economic and political channels following years of friction. Bilateral trade between India and China reached $127.7 billion in the 2025–26 fiscal year, marking a 7.9 per cent increase from $118.39 billion the previous year.
Trade Deficit and Surging Exports Define Bilateral Growth
Economic exchanges between India and China continue to expand despite a heavily lopsided trade balance. India’s exports to China climbed 36.62 per cent to $19.47 billion in 2025–26, up from $14.25 billion a year earlier. Conversely, imports from China rose 16 per cent to $131.62 billion during the same period.
This growth widened India’s trade deficit with its second-largest trading partner to $99.19 billion for the fiscal year, compared to $85 billion in 2024–25. Addressing reporters in the Netherlands, Goyal emphasized that while Beijing supplies critical intermediate goods and raw materials, India insists on fair pricing and open trade rules.
If in any particular product, we find that the fair play or pricing is not proper, then there’s an established judicial process, which is conducted,
Goyal said.
In addition to trade volume concerns, foreign direct investment policies remain restricted. India maintains a tightened foreign direct investment policy regarding countries that share a land border with it, adding a layer of regulatory oversight to Chinese capital inflows.
Diplomatic Rebuilding and New Regional Challenges
Goyal’s trade projections follow a series of diplomatic steps taken to mend bilateral relations after they came under severe strain following the deadly Galwan Valley clashes in 2020. The two neighbours began to repair their relations following a meeting between Modi and Xi in the Russian city of Kazan in October 2024 that was held after the face-off ended. The minister said he held meetings with his Chinese counterpart on the sidelines of the BRICS summit in New Delhi. Just weeks prior to his remarks in The Hague, Goyal noted on October 14 that while India is working to rebuild relations with China, the last word on this journey has not yet been scripted.
Operational hurdles have also emerged alongside diplomatic progress. When questioned regarding China’s newly implemented export controls on key industrial machinery—specifically tunnel boring machines (TBMs)—Goyal stated, We will work on it
. These export restrictions threaten to impact several infrastructure projects across India, including underground metro systems, high-speed rail lines and tunnels in various locations, including border areas.
Frequently Asked Questions
What countries make up the ASEAN region mentioned in trade projections?
The Association of Southeast Asian Nations comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
How much did India-China bilateral trade grow in the 2025–26 fiscal year?
Bilateral trade rose by 7.9 per cent to reach $127.7 billion in 2025–26, up from $118.39 billion in 2024–25.
What specific machinery restrictions are currently causing concern for Indian infrastructure projects?
China has imposed new export controls on key machinery, notably tunnel boring machines and related items, which could affect underground metro systems, high-speed rail lines, and tunnels in various locations, including border areas.
We are looking to open markets in different countries on a reciprocal basis for our goods and services. And I do hope that in the years to come, we will see India becoming a major exporter of goods and services to China and the ASEAN region also,
Goyal told reporters in The Hague.
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