Abstract: Indian-China bilateral trade has risen rapidly in the last two decades. In 2001 China was behind several countries, including Belgium and Singapore, as its share of India's total trade is concerned, China shared 3.5% of India's total trade, while the US shared 14.4%, the UK shared 5.1%, and Belgium shared 4.1% of India's total trade. However, trade has picked up dramatically in the last few years since Chinese became a WTO member. After 2008-09 China has emerged as India's largest trading partner. Since 2009 the trade situation has changed dramatically with a large rise in bilateral imports from India. Not only did China leap in its ranking among India's leading bilateral trade partners, it also sprinkled the Indian market with its exports, causing severe bilateral trade imbalance. It holds almost nine per cent of the total trade in India in 2012. Trade between India and China has been expected to cross US$ 60 billion in 2010 and up to US$ 125 billion in 2012. The projected target was nearly achieved in 2010, when trade reached US$ 61.7 billion. However, due mainly to the global economic slowdown, the projected goal was significantly under-reached to hit the amount of 66.4 billion in 2012. Bilateral trade grew by almost 14 times, from US$ 4.94 billion in 2002 to almost US$ 70.6 billion in 2014 and US$ 70.2 billion in 2016 (India Embassy 2017).