Union Finance Minister Nirmala Sitharaman has said that China’s non-tariff barriers remain a significant hurdle for Indian exporters, limiting market access for products such as generic medicines, bovine meat and agricultural produce. Her remarks come amid a widening trade deficit between India and China.
Speaking at a conversation hosted by the Atlantic Council on the sidelines of the International Monetary Fund–World Bank annual meetings in Bangkok, Sitharaman said India had repeatedly sought better access for its products in China, but progress had remained limited despite years of discussions.
“A decade has gone by consistently putting up a case for market access for Indian products but non-tariff barriers have been very strong and China uses non-tariff barriers unhesitatingly. Non-tariff barriers are the biggest hurdle in the trade between India and China,” she said, as reported by Business Standard.
India’s Trade Deficit with China Widens
According to the newspaper report, India’s trade deficit with China more than doubled to USD 112 billion in FY2026 from USD 52.7 billion in FY2016.
The report’s accompanying trade data shows the deficit with China at USD 112 billion in FY2026, compared with USD 73.3 billion in FY2022. For April–August FY2027, the reported figure stood at USD 55.9 billion.
Sitharaman said New Delhi had repeatedly sought market access for products in which India has a competitive advantage. However, progress had been constrained by issues including sanitary and phytosanitary measures and other regulatory requirements.
India Calls for Review of ASEAN Trade Agreement
The Finance Minister also called for a review of India’s trade agreement with the Association of Southeast Asian Nations (ASEAN), arguing that its benefits had been unevenly distributed.
The newspaper’s accompanying figures show India’s trade deficit with ASEAN increasing from USD 25.7 billion in FY2022 to USD 51.5 billion in FY2026. The reported deficit for April–August FY2027 was USD 17.6 billion.
The figures have renewed attention on the balance of trade and market access under India’s regional trade arrangements.
China Signals Willingness to Address Trade Concerns
Responding to Sitharaman’s remarks, China’s Foreign Ministry said Beijing was prepared to work with New Delhi to address each other’s economic and trade concerns in a balanced manner and promote the steady development of bilateral relations.
Chinese Foreign Ministry spokesperson Mao Ning said, as reported by PTI, that China did not aim for a trade surplus.
Sitharaman’s comments followed remarks by Commerce Minister Piyush Goyal, who said India was working to develop relations with China “once again”, while cautioning that the outcome remained uncertain.
The discussion highlights continuing concerns over market access, regulatory barriers and trade imbalances as India seeks improved export opportunities in China and reviews the outcomes of its existing trade agreements.