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INDIA CHINA Connect

Economy

India’s exports to the US fell 12.88% in February amid tariff changes, with a temporary 10% duty replacing steep earlier levies. Imports from the US surged, adding trade pressures. Meanwhile, India’s deficit with China crossed $102 billion, as strong exports contrast with heavy reliance on imports. Overall, the merchandise trade deficit widened year-on-year.

India’s exports to the US fell 12.88% in February amid tariff changes, with a temporary 10% duty replacing steep earlier levies. Imports from the US surged, adding trade pressures. Meanwhile, India’s deficit with China crossed $102 billion, as strong exports contrast with heavy reliance on imports. Overall, the merchandise trade deficit widened year-on-year.

US-bound exports decline 13%, India’s trade deficit with China crosses $100 billion

Apple boosted iPhone production in India by 53% to 55 million units in 2025, now accounting for about 25% of its global output. The shift diversifies supply chains beyond China amid U.S. tariffs. Despite higher costs, government incentives drive growth. India assembles iPhone 17 and older models, generating $9 billion revenue, with retail and Apple Pay expansion planned.

Apple boosted iPhone production in India by 53% to 55 million units in 2025, now accounting for about 25% of its global output. The shift diversifies supply chains beyond China amid U.S. tariffs. Despite higher costs, government incentives drive growth. India assembles iPhone 17 and older models, generating $9 billion revenue, with retail and Apple Pay expansion planned.

iPhone Output Surges 53% - Apple now makes about 25% of iPhones in India

India’s Union Cabinet eased FDI rules for neighbors by amending Press Note 3 of 2020, relaxing prior approval requirements. The policy covers China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan. Despite this, China’s FDI share remains low at 0.32% ($2.51 billion). Meanwhile, India’s trade deficit with China widened to $99.2 billion in 2024–25, highlighting ongoing economic imbalances.

India’s Union Cabinet eased FDI rules for neighbors by amending Press Note 3 of 2020, relaxing prior approval requirements. The policy covers China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan. Despite this, China’s FDI share remains low at 0.32% ($2.51 billion). Meanwhile, India’s trade deficit with China widened to $99.2 billion in 2024–25, highlighting ongoing economic imbalances.

India Relaxes FDI Rules for Neighbouring Nations, Including China, in Key Policy Shift

Politics

China’s 15th Five-Year Plan (2026) marks a shift from high-speed to high-quality growth, targeting 4.5–5% with reform, innovation, and sustainability toward 2035 goals. It accelerates AI-driven smart economy transformation, expands global opening-up, and strengthens China-India ties, highlighted by record $155.6 billion trade and BRICS cooperation, signaling modernization momentum and new business opportunities.

China’s 15th Five-Year Plan (2026) marks a shift from high-speed to high-quality growth, targeting 4.5–5% with reform, innovation, and sustainability toward 2035 goals. It accelerates AI-driven smart economy transformation, expands global opening-up, and strengthens China-India ties, highlighted by record $155.6 billion trade and BRICS cooperation, signaling modernization momentum and new business opportunities.

H.E. Mr. Xu Feihong, Chinese Ambassador to India publishes an article titled "Four Signals Conveyed by China's Two Sessions" in The New Indian Express

Wang Yi urged India and China to act as partners, not rivals, highlighting improved ties after Modi–Xi meetings in Kazan and Tianjin. Trade and exchanges hit new highs, with emphasis on border peace, economic growth, and regional stability. He called for cooperation within BRICS and the Global South, as relations recover from Ladakh tensions, signaling renewed diplomatic momentum.

Wang Yi urged India and China to act as partners, not rivals, highlighting improved ties after Modi–Xi meetings in Kazan and Tianjin. Trade and exchanges hit new highs, with emphasis on border peace, economic growth, and regional stability. He called for cooperation within BRICS and the Global South, as relations recover from Ladakh tensions, signaling renewed diplomatic momentum.

India, China should see each other as partners: Chinese foreign minister

India-China ties improved after the October 2024 border agreement, with Modi-Xi meetings restoring dialogue. Normalization includes resumed flights, tourist visas, and the Kailash Mansarovar Yatra. The government may ease Press Note 3 restrictions by introducing a ‘de-minimis’ threshold for smaller investments. Strategically, this aligns with global “China Plus One” manufacturing strategies, balancing diplomacy and economic opportunity.

India-China ties improved after the October 2024 border agreement, with Modi-Xi meetings restoring dialogue. Normalization includes resumed flights, tourist visas, and the Kailash Mansarovar Yatra. The government may ease Press Note 3 restrictions by introducing a ‘de-minimis’ threshold for smaller investments. Strategically, this aligns with global “China Plus One” manufacturing strategies, balancing diplomacy and economic opportunity.

India-China Relations 2.0: A New Dawn for Economic Cooperation

International

Between 2020 and 2025, BYD overtook Tesla in over 20 markets, becoming the world’s top EV seller. Operating in 113 countries, it achieved a breakthrough in the UK. Competitive pricing and in-house battery production fuel its edge. Expansion spans Europe, South America, and Southeast Asia, despite regulatory hurdles. Domestic sales pressures accelerate overseas manufacturing, strengthening BYD’s global strategy.

Between 2020 and 2025, BYD overtook Tesla in over 20 markets, becoming the world’s top EV seller. Operating in 113 countries, it achieved a breakthrough in the UK. Competitive pricing and in-house battery production fuel its edge. Expansion spans Europe, South America, and Southeast Asia, despite regulatory hurdles. Domestic sales pressures accelerate overseas manufacturing, strengthening BYD’s global strategy.

BYD Outpaced Tesla in Key Markets in just five years

India is highly vulnerable to Middle East oil disruptions, holding only 74 days of reserves. In contrast, China has six months, Japan 254 days, and South Korea 208 days. India relies on the Middle East for 55% of its oil, with half passing through the crucial Strait of Hormuz, highlighting its strategic risk amid regional tensions.

India is highly vulnerable to Middle East oil disruptions, holding only 74 days of reserves. In contrast, China has six months, Japan 254 days, and South Korea 208 days. India relies on the Middle East for 55% of its oil, with half passing through the crucial Strait of Hormuz, highlighting its strategic risk amid regional tensions.

Oil Vulnerability: India Most Exposed to Middle East Supply Disruptions

Over 9.3 million Indians in the Persian Gulf send $125B in remittances annually, the world’s highest. The Gulf conflict has shut the Strait of Hormuz, crippling hubs like Dubai. With India importing 90% of its oil from the region, the crisis threatens currency stability and the economic mobility of millions dependent on Gulf jobs and remittance flows.

Over 9.3 million Indians in the Persian Gulf send $125B in remittances annually, the world’s highest. The Gulf conflict has shut the Strait of Hormuz, crippling hubs like Dubai. With India importing 90% of its oil from the region, the crisis threatens currency stability and the economic mobility of millions dependent on Gulf jobs and remittance flows.

India's Global Economic Influence Showcased by Powerful Gulf Partnership

Culture

Between 2010 and 2020, Buddhists were the only major religious group to see a global decline. Pew Research Center data shows their numbers fell from about 343 million to 324 million—a 5% drop. This unusual trend contrasts with overall global growth, as other major religions expanded while the world’s population rose by 12% during the decade.

Between 2010 and 2020, Buddhists were the only major religious group to see a global decline. Pew Research Center data shows their numbers fell from about 343 million to 324 million—a 5% drop. This unusual trend contrasts with overall global growth, as other major religions expanded while the world’s population rose by 12% during the decade.

Why the Global Buddhist Population Declined Between 2010 and 2020

Women make up 17.5% of IndiGo and 16% of Air India pilots — triple the global average. IndiGo employs over 1,000 women pilots, with women forming 45% of its workforce across operations, finance, digital, and leadership. Air India reports rising female roles in airport operations and security. Both airlines reaffirm commitment to diversity and expanding women’s aviation careers.

Women make up 17.5% of IndiGo and 16% of Air India pilots — triple the global average. IndiGo employs over 1,000 women pilots, with women forming 45% of its workforce across operations, finance, digital, and leadership. Air India reports rising female roles in airport operations and security. Both airlines reaffirm commitment to diversity and expanding women’s aviation careers.

India’s Skies See Rising Number of Women Pilots as Airlines Outpace Global Average

'Virtually unbeatable' India win praise after third T20 World

'Virtually unbeatable' India win praise after third T20 World

'Virtually unbeatable' India win praise after third T20 World

Insight

India’s aviation rules mandate at least 60% of seats free from extra selection charges, curbing surge pricing during peak demand. They ensure fare transparency, stabilize ticket costs, and guarantee families under one PNR sit together. Clearer baggage, pet, and passenger rights policies strengthen consumer protection, supporting fairness and trust in India’s rapidly expanding airline market.

India’s aviation rules mandate at least 60% of seats free from extra selection charges, curbing surge pricing during peak demand. They ensure fare transparency, stabilize ticket costs, and guarantee families under one PNR sit together. Clearer baggage, pet, and passenger rights policies strengthen consumer protection, supporting fairness and trust in India’s rapidly expanding airline market.

Major Boost for Flyers in India: 60% seats on flights to be free

The Middle East remains vital for global energy and trade stability, with recent tensions underscoring risks to security and maritime routes. India and China hold growing stakes in regional peace: China advances infrastructure and mediation via BRI, while India pursues strategic autonomy and balanced engagement. Cooperation between both powers could reinforce multipolar stability worldwide.

The Middle East remains vital for global energy and trade stability, with recent tensions underscoring risks to security and maritime routes. India and China hold growing stakes in regional peace: China advances infrastructure and mediation via BRI, while India pursues strategic autonomy and balanced engagement. Cooperation between both powers could reinforce multipolar stability worldwide.

Rising Eastern Powers and the Middle East: How India and China Can Shape a More Stable Global Future

FY26 passenger vehicle sales are projected at ~4.7 million units, driven by strong domestic demand despite logistics and freight challenges. Dealers face 10–15% lower shipments, missing opportunities, while rising costs pressure margins. SUVs dominate market share, and localisation above 70–80% enhances resilience. The industry is expected to surpass 5 million units in FY27.

FY26 passenger vehicle sales are projected at ~4.7 million units, driven by strong domestic demand despite logistics and freight challenges. Dealers face 10–15% lower shipments, missing opportunities, while rising costs pressure margins. SUVs dominate market share, and localisation above 70–80% enhances resilience. The industry is expected to surpass 5 million units in FY27.

India’s Passenger Vehicle Market Defies Headwinds, Eyes Record-Breaking Year Ahead

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