Overview
- Finance Minister Nirmala Sitharaman said on Friday that China’s extensive use of non‑tariff barriers, especially phytosanitary rules that block plant and food shipments, is the main reason Indian exports struggle to reach the Chinese market.
- China Customs data for January–September 2026 show India’s trade deficit with China widened past $100 billion to about $105.9 billion, driven by much larger Chinese exports to India than Indian shipments to China.
- Sitharaman named sectors hit by these restrictions, including generic pharmaceuticals, bovine meat, vegetables and other perishables, and said India has not used retaliatory tariffs or countervailing duties, preferring negotiation.
- Beijing’s foreign ministry responded that China does not seek a trade surplus and is willing to work with India to address mutual trade concerns, while New Delhi advances parallel measures including a review of the ASEAN pact and rupee‑based settlement plans.
- The push for market access is tied to broader economic pressures: India’s heavy oil and fertiliser import bill has weakened the rupee, prompted RBI intervention, and makes improved export access and alternative settlement tools important to ease currency and balance‑of‑payments stress.