However, India's trade deficit with China has also widened, increasing by approximately 17% to $99.2 billion in 2024-25, compared to $85.07 billion in the prior fiscal year.

The ongoing trade tensions between the US and China have escalated, with the US imposing a staggering 245% tariff on Chinese goods, prompting China to retaliate with a 125% tariff on US imports.

The DGTR plays a crucial role in implementing trade remedial measures, including anti-dumping and countervailing duties, to safeguard the domestic industry from unfair trade practices.

These high tariffs are expected to shift trade dynamics, potentially diverting trade flows towards India.

China continues to be India's second-largest trading partner, with total trade reaching $127.7 billion in the fiscal year 2024-25, a notable increase from $118.4 billion in the previous year.

Products currently under investigation for anti-dumping measures include vitamin-A palmitate, insoluble sulphur, aluminum foil, plastic processing machines, digital offset printing plates, and decor paper.

In this context, India's exports to China have suffered a decline of 14.5%, totaling $14.25 billion, while imports surged by 11.52% to $113.45 billion.

To manage the rising imports and protect domestic industries, the Indian government has established an inter-ministerial import surge monitoring group.

In March 2025, the Directorate General of Trade Remedies (DGTR) issued final findings in 13 anti-dumping cases, primarily targeting products imported from China.

Of the 13 cases investigated by the DGTR, 12 are focused on Chinese products, while the remaining cases involve imports from the European Union, Japan, Taiwan, Russia, and Thailand.