China has regained its position as India's largest trading partner overtaking the US after two years, according to Indian media reports.

The two-way trade between India and China stood at $118.4 billion in fiscal year 2023-24 (FY24) buoyed by increased imports and exports from India.

The latest bilateral trade data was marginally higher than the two-way trade with the US of $118.3 billion in FY24, according to Global Trade Research Initiative (GTRI).

The US lost its crown as India's largest trading partner on having retained the top position for two consecutive years.

India, the third biggest economy in Asia, exported $16.67 billion of items in FY24, posting an 8.7 percent year-on-year increase.

Its imports grew 3.24 percent to $101.7 billion in the same year, reported several Indian media.

The main sectors, which recorded healthy growth in exports to that country, include iron ore, cotton yarn/fabrics/made-ups, handloom fabrics, spices, fruits and vegetables, plastic, and linoleum, according to The Economic Times (ET).

The Economic Times cited the GTRI and said from fiscal year 2019 to FY2024, India's trade dynamics with its top 15 trading partners underwent significant transformations.

This impacted both exports and imports along with the status of trade surplus or deficit across various sectors, it said.

It added that China witnessed a marginal decline in exports by 0.6 percent, from $16.75 billion to $16.66 billion, while imports from China surged by 44.7 percent, from $70.32 billion to $101.75 billion.

"This growth in imports led to an expanding trade deficit, rising from USD 53.57 billion in FY2019 to USD 85.09 billion in FY2024, highlighting concerns over stagnant exports amidst rising imports," GTRI Founder Ajay Srivastava said.

Trade with the US showed growth, with exports increasing significantly by 47.9 percent from $52.41 billion to $77.52 billion, according to The Economic Times report.

India's economic ties with China have been under close scrutiny due to a heavy reliance on Chinese imports in critical sectors such as telecommunications, pharmaceuticals, and advanced technology, said Mint, a business and financial daily of India.

Mint said the GTRI report highlighted significant dependence, noting, "India imported $4.2 billion worth of telecom and smartphone parts, accounting for 44 percent of total imports in this category, indicating significant reliance on Chinese components.

"Laptops and PCs imports from China totalled $3.8 billion, making up 77.7 percent of India's imports in this sector," it said.

In response, India has implemented various measures to reduce this dependency, including production-linked incentive schemes (PLI), anti-dumping duties, and quality control orders, according to the Mint.

Additionally, India's import of lithium-ion batteries for electric vehicles, primarily from China, was valued at $2.2 billion, representing 75 percent of such imports, underscoring the critical role China plays in India's push towards electrification of transport, reports the newspaper.

The report, according to the Mint, also compared other significant trading relationships, noting substantial changes in trade dynamics with countries like Russia and Saudi Arabia.

Russia's trade figures have seen a dramatic increase, with exports growing by 78.3 percent and imports soaring by 952 percent, leading to a significantly widened trade deficit.

In contrast, trade with Saudi Arabia showed a more balanced growth, with exports more than doubling and imports rising at a slower pace, reports Mint.