In 2025, the economic relationship between India and China reached an unpredictable milestone, with bilateral trade reaching a record $155 billion. This achievement represents 12% year-on-year growth, marking a reset and a fresh start for two Asian giants. According to Chinese Ambassador Xu Feihong, the increase in trade between India and China represents a significant improvement in diplomatic relations.
This diplomatic shift is attributed to a key meeting between Prime Minister Narendra Modi and President Xi Jinping in August 2024, which helped resolve previous differences. This meeting between the top leaders was a game-changer. It successfully moved both countries away from a tense military face-off and started a new chapter together, focusing on growth and peace.
By aligning their growth plans, India and China are finding common ground for China’s global goals and India’s philosophy that “the world is one family.” This indicates that the countries have established a friendly relationship and will work together in the future on platforms such as BRICS.
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Border tensions between the two countries cooled in late 2024, making it easier for people to travel for business and tourism. This $155 billion milestone marks a fresh start for the two countries, focusing on business and leaving behind old arguments, enabling both to grow together.
