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Orgo-Life the new way to the future Advertising by AdpathwayIndia and China seek stronger economic ties, but trade imbalance, border tensions and limited Chinese investment remain key hurdles
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Last Updated :
Sep 14 2026 | 11:41 PM
IST
India and China sought to enhance their economic cooperation on the sidelines of the just-concluded Brics Leaders’ Summit despite differences over the allocation of technologies, minerals, and border issues. The world’s second and sixth largest economies together now constitute over 80 per cent of the combined gross domestic product (GDP) of Brics and almost 20
Though China has been in a tight race with the US to be India's largest trading partner, having been so in 2025, bilateral merchandise trade between the two nations accounted for merely 12 per cent of intra-Brics trade and under 1 per cent of global trade in recent years. This trade is also one-sided, as imports from China accounted for an 87.32 per cent share in total bilateral trade between the two countries.
Border issues remain a major stumbling block to scaling up economic relations between the two nations. Following the Galwan skirmishes, foreign direct investment (FDI) equity inflow from China slowed after India imposed curbs. The recent relaxations are yet to show in FDI numbers.
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