China's trade barriers biggest hurdle in bilateral ties, says Nirmala Sitharaman; flags $100 billion deficit
Economic Times 1 hr ago·16 Oct 2026, 4:07 am
India’s finance minister Nirmala Sitharaman told parliament that the country’s trade gap with China has widened to more than $100 billion this year. She said that beyond the headline figure, a series of non‑tariff measures imposed by Beijing are limiting Indian goods, particularly generic medicines, from reaching Chinese shelves.
For investors, the widening deficit signals pressure on Indian exporters and could weigh on sectors that rely heavily on the Chinese market. A persistent shortfall may also affect the rupee and broader sentiment toward companies with significant China exposure.
Going forward, markets will be watching for any diplomatic or policy moves aimed at easing those barriers, as well as quarterly trade data that could show whether the gap narrows. Updates from trade talks or regulatory changes in either country could shift expectations for export‑driven earnings.
Excerpt from Economic Times
Nirmala Sitharaman has identified China's constraints on Indian exports as a crucial hindrance to trade advancement. The finance minister reported a staggering trade deficit exceeding $100 billion with China this year, even with improved diplomatic relations. She noted that non-tariff barriers obstruct Indian…Read the original at Economic Times
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