At a time when the global economic recovery is weak，inflation pressure is intensifying，and the risk of spillover from monetary policy changes of major economies is rising，China and India，as the two largest developing countries in Asia，should promote the early completion of the China-India Free Trade Area，which will become an important way for the two countries to cope with complicated international trade disputes and enhance international trade competitiveness. This report mainly adopts the method of qualitative analysis and literature analysis，discusses the new opportunities and major challenges faced by the construction of China-India Free Trade Area，and looks forward to the prospect of the construction of China-India Free Trade Area. The findings show that rising trade protectionism，fluctuating political relations and persistent trade imbalances are the three major challenges facing the construction of the China-India Free Trade Area. The China-India Free Trade Area should be completed at an early date，we should uphold the concept of trade liberalization，push for steady and long-term development of China-India relations，change the development model and improve the trade structure，and properly respond to India’s “De-sinification” policy.