China Eases Curbs on $107 Billion India Trade Gap as Flights Resume and Visas Loosen
Updated
Updated · The Assam Tribune · Jul 20
China Eases Curbs on $107 Billion India Trade Gap as Flights Resume and Visas Loosen
2 articles · Updated · The Assam Tribune · Jul 20
Summary
Rare earth magnets, fertilisers and tunnel-boring machines are again flowing more freely from China to India, easing supply pressure on Indian automakers, electronics makers and other manufacturers.
Direct flights resumed in October 2025, visa rules have begun to loosen and new dialogue channels have reopened after most engagement was frozen following the 2020 Galwan clashes.
Modi and Xi restarted top-level contact in October 2024 and followed with an SCO meeting in Tianjin in August 2025, reflecting a push for economic stability as global trade conditions grew less predictable.
India still runs a roughly $107 billion goods deficit with China: imports climbed to nearly $125 billion in 2025 while exports were just over $18 billion, underscoring deep dependence in electronics, machinery and pharma inputs.
New Delhi is pairing the thaw with caution, keeping domestic schemes for rare earths, bulk drugs and electronics to cut long-term reliance even as industry needs Chinese inputs in the near term.