India-China trade talks likely ahead of Xi’s India visit

India is likely to send a high-level delegation to China early next week, possibly led by Commerce Secretary Rajesh Agrawal, to advance talks on pending trade and investment issues. Ahead of President Xi Jinping’s expected visit to New Delhi for the BRICS Summit later this month, the talks would include widening trade imbalance and restrictions on Chinese investments, sources said.

“Both India and China are keen to deepen bilateral trade and investment ties amid growing geopolitical uncertainties and the US tariff onslaught. The proposed meeting between Chinese President Xi Jinping and Prime Minister Narendra Modi in New Delhi is likely to give fresh impetus to economic engagement between the two countries. The likely visit of the Indian delegation to China on September 7-8 could help firm up the agenda,” an industry source told businessline.

The proposed visit has not been confirmed by the Commerce Department. However, three industry sources said inputs had been sought from exporters on tariff and non-tariff barriers in China ahead of the high-level delegation’s meetings.

“Exporters were asked to highlight any difficulties faced in accessing the Chinese market, including non-tariff barriers, regulatory requirements, customs procedures, product-specific restrictions and other impediments to exports,” the sources said.

New Delhi is likely to flag concerns over its widening trade deficit with China, the need for greater market access, disruptions caused by sudden restrictions on critical inputs and technology, tariff and non-tariff barriers, and rejection of business visas, the source said. Beijing, meanwhile, is expected to seek further easing of restrictions on Chinese investments in India, including faster approvals and greater scope for investment in non-strategic sectors.

Bilateral merchandise trade between India and China rose to around $151.1 billion in FY26, with India’s exports climbing 36.7 per cent to $19.47 billion. However, imports from China grew 16 per cent to $131.63 billion, widening India’s trade deficit to a record $112.16 billion from $99.2 billion in FY25.

New Delhi is particularly concerned about its dependence on China for machinery, electronics and electronic components, lithium-ion batteries, fertilizers and other intermediate and capital goods. The proposed delegation’s visit comes amid a gradual thaw in bilateral ties, which had nosedived after the Galwan Valley clashes in 2020, following efforts by the two sides to stabilise relations and resolve outstanding border issues.

Xi is expected to visit India for the BRICS Summit on September 12-13, which would be his first visit to the country in seven years. Apart from trade and investment, Modi and Xi are expected to discuss progress in stabilising the border, resumption of direct air connectivity and easing of visa restrictions, besides exchanging views on global trade and the impact of US tariff measures.