India’s trade relationship with china has long been defined by an imbalance. According to a recent ICRIER study, india imported goods worth $113.5 billion from china in FY2024–25, while exports stood at a mere $14.3 billion. The yawning $99.2 billion trade deficit reflects not just economic asymmetry but also India’s missed opportunities in key industries.
But the study makes a compelling case: India has an untapped export potential of $161 billion to China. Unlocking this could redefine bilateral trade and position indian industries on stronger global footing.
Where india Can Bridge the Gap
Pharmaceuticals & APIs
India is the world’s largest supplier of generic drugs, yet china dominates APIs (Active Pharmaceutical Ingredients).
Business Idea: Build clusters for API manufacturing with government incentives, reducing dependency on Chinese imports and boosting indian pharma exports.
Textiles & Apparel
China’s aging population and rising wages create a gap in cost-effective apparel manufacturing.
Business Idea: indian firms can target mid-range textile exports to Chinese retailers and e-commerce giants like Alibaba and JD.com.
Agri & Food Processing
India can tap into China’s growing demand for processed food, organic produce, and seafood.
Business Idea: Exporting mangoes, spices, rice, and marine products with branding focused on “authentic indian origin.”
IT & wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital Services
India has a global reputation in software, cloud services, and AI solutions.
Business Idea: Position indian IT firms as backend partners for Chinese startups expanding globally.
Renewable Energy & Green Tech
China leads in solar hardware, but india can supply services in installation, smart grids, and green hydrogen collaboration.
Business Idea: Joint ventures with Chinese manufacturers to set up plants in india for re-export.
Tourism & Education
Pre-COVID, thousands of Chinese students came to india for medical studies. Tourism and education remain undervalued.
Business Idea: Revive bilateral educational programs, yoga retreats, Ayurveda-based wellness tourism.
Strategic Moves for indian Businesses
Brand india in China: indian products often lack visibility in the Chinese market. A collective “Made in India” branding push could change perception.
Leverage FTAs & Trade Corridors: Work through ASEAN, BRICS, and RCEP-adjacent agreements to access Chinese demand indirectly.
Supply Chain Diversification: As Western countries “de-risk” from china, indian businesses can position themselves as alternative suppliers, then use china for scale manufacturing partnerships.
The Road Ahead
The $99.2 billion deficit isn’t just a problem—it’s an opportunity. With $161 billion in untapped export potential, india can recalibrate its trade with china by:
Focusing on value-added exports rather than raw materials.
Building strategic bilateral partnerships in pharma, tech, and food security.
Encouraging Indian SMEs to explore niche markets in China.
If indian businesses seize this moment, the India-China trade narrative can shift from imbalance to opportunity, and from dependence to partnership.
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