Economic relations between China and India have entered a promising new phase as bilateral trade surged to an unprecedented $155.6 billion in 2025, marking a substantial 12% year-on-year increase. This breakthrough comes amid improving diplomatic relations and signals growing momentum for deeper economic integration between the two Asian giants.
Chinese Ambassador to India Xu Feihong, speaking at a Chinese New Year reception in New Delhi, highlighted the significance of this milestone, noting that Indian exports to China grew by 9.7% annually. The ambassador emphasized China’s commitment to strengthening strategic alignment with India, enhancing practical cooperation, and boosting people-to-people exchanges. He further affirmed China’s support for India’s BRICS rotating chairmanship and willingness to enhance multilateral coordination.
Business leaders and analysts from both nations express optimism about the relationship’s trajectory. Rajeev Singh, Director-General of the Indian Chamber of Commerce, noted that China and India represent natural economic partners capable of contributing 50% of global GDP growth. He emphasized the importance of building trust and maintaining stability in the current geopolitical climate.
The improved relations are already yielding tangible benefits, with travel restrictions easing and direct flight routes resuming. Air India recently reinstated the Shanghai-New Delhi direct route, following the October restart of daily flights between Kolkata and Guangzhou after a five-year hiatus.
Vijay K. Mishra, Executive Vice-Chairman of the India China Trade Centre, observed that China’s demonstrated economic resilience and commitment to high-quality growth provide strong reassurance to Indian businesses and investors. He noted the vast untapped potential for deeper economic engagement, industrial collaboration, and value-chain integration between the two nations.
Indian entrepreneurs and young leaders echo this sentiment, with Shranik Chopra noting that improved bilateral ties will build greater confidence among business communities on both sides. Himadrish Suwan, Chairman of the Confederation of Young Leaders of India, emphasized the immense potential of the partnership when guided by dialogue, mutual respect, and shared interests.
The relationship’s upward trajectory follows the August meeting between the two countries’ leaders in Tianjin, which marked a turning point in bilateral relations. With record trade figures and renewed diplomatic engagement, 2026 is poised to be a year of significant positive developments in Sino-Indian economic cooperation.