India-China Trade Soars to Record High, Envoy Highlights Improved Relations
Bilateral trade between India and China has reached a record high of USD 155.6 billion in 2025, marking a significant milestone in the economic relationship between the two nations. The year-on-year growth of over 12% underscores the strengthening of ties, particularly after a prolonged period of military stand-off.
Chinese Ambassador to India, Xu Feihong, speaking at a Chinese New Year event in New Delhi, emphasized the positive trajectory of relations. He noted that the ties have moved to "a new level of improvement" following a crucial meeting between Prime Minister Narendra Modi and President Xi Jinping in Tianjin in August of last year. This meeting appears to have paved the way for enhanced economic and cultural exchanges.
The surge in trade is not the only indicator of improving relations. Ambassador Xu highlighted that India's exports to China experienced a growth of 9.7% in 2025, demonstrating the increasing potential for trade cooperation. Furthermore, practical measures facilitating people-to-people exchanges have been implemented. India has resumed issuing tourist visas to Chinese citizens, and direct flights between the two countries have been restored, easing travel and fostering greater interaction.
In addition to economic progress, religious exchanges have also seen a positive development. China has resumed the Kailash Mansarovar Yatra, allowing nearly 20,000 Indian pilgrims to visit the sacred mountain and holy lake in the Xizang region. This resumption signifies a restoration of normalcy in cultural and religious interactions.
Ambassador Xu also touched upon broader global initiatives. He referenced President Xi Jinping's Global Governance Initiative, aimed at creating a more just and equitable global governance system. He affirmed China's commitment to true multilateralism, safeguarding the global free trade system, and ensuring stable supply chains. China also expressed support for India's BRICS presidency in 2026 and a willingness to strengthen multilateral coordination to advance the development of the Global South.
The growing trade and improving relations occur against a backdrop of complex geopolitical dynamics. Despite historical border disputes and military conflicts, both countries have successfully rebuilt diplomatic and economic ties since the late 1980s. The current progress suggests a commitment to aligning strategies for mutual growth, with both nations emphasizing economic cooperation and shared cultural values. Ambassador Xu drew parallels between China's vision of a "world of great harmony" and India's philosophy of Vasudhaiva Kutumbakam, underscoring the potential for collaboration on a global scale.