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INDUQIN - India China Connect, India China Connect, India China Update

INDIA CHINA Connect

Economy

Urban areas are projected to generate 70% of India’s GDP in 2025–26, up from 45% in the 1990s, with the urban population set to reach 600 million by 2036. Urban local bodies have grown 8.56% since 2016. Tier-II and Tier-III cities are rising as investment hubs, backed by ₹5,000 crore allocations, led by Ahmedabad and Pune.

Urban areas are projected to generate 70% of India’s GDP in 2025–26, up from 45% in the 1990s, with the urban population set to reach 600 million by 2036. Urban local bodies have grown 8.56% since 2016. Tier-II and Tier-III cities are rising as investment hubs, backed by ₹5,000 crore allocations, led by Ahmedabad and Pune.

India’s Urban Surge: accounts for 70% of GDP in FY26: Dun & Bradstreet report

India has become the leading overseas market for Japanese firms, with client inquiries up over 50% in FY2024. Mizuho’s Avendus acquisition signals efforts to strengthen the India–Japan financial corridor, alongside multibillion-dollar investments by major Japanese banks. India’s youthful demographics, digital expansion, and low credit penetration promise long-term growth, while Japan’s saturated domestic market drives overseas diversification.

India has become the leading overseas market for Japanese firms, with client inquiries up over 50% in FY2024. Mizuho’s Avendus acquisition signals efforts to strengthen the India–Japan financial corridor, alongside multibillion-dollar investments by major Japanese banks. India’s youthful demographics, digital expansion, and low credit penetration promise long-term growth, while Japan’s saturated domestic market drives overseas diversification.

Japan’s Banking Giants Deepen Their Bet on India’s Growth Story

A proposed India–US trade deal could lift India’s annual trade surplus by $45 billion and boost exports by over $100 billion. Tariff cuts to 18% would enhance competitiveness, potentially adding 1.1% to GDP and saving $3 billion in forex annually. Key sectors include machinery, pharma, textiles, autos, gems, seafood, and agriculture, while reinforcing China+1 manufacturing diversification strategies.

A proposed India–US trade deal could lift India’s annual trade surplus by $45 billion and boost exports by over $100 billion. Tariff cuts to 18% would enhance competitiveness, potentially adding 1.1% to GDP and saving $3 billion in forex annually. Key sectors include machinery, pharma, textiles, autos, gems, seafood, and agriculture, while reinforcing China+1 manufacturing diversification strategies.

India–US trade deal could lift surplus by $45 bn, exports could top $100 bn annually: SBI Report

Politics

Chinese Ambassador Xu Feihong signaled renewed momentum in India–China ties during Spring Festival events, emphasizing deep civilizational links and expanding academic exchanges. He noted shared values of harmony, self-reliance, and support for the Global South. Bilateral trade reached a record $155.6 billion in 2025, while resumed travel, pilgrimages, and flights strengthened people-to-people connections.

Chinese Ambassador Xu Feihong signaled renewed momentum in India–China ties during Spring Festival events, emphasizing deep civilizational links and expanding academic exchanges. He noted shared values of harmony, self-reliance, and support for the Global South. Bilateral trade reached a record $155.6 billion in 2025, while resumed travel, pilgrimages, and flights strengthened people-to-people connections.

'Culture, Trade, Trust': China New Momentum In India Ties

India is cautiously considering a phased reopening of economic engagement with China, tied to reciprocal steps. Global trade uncertainty and possible US tariff pressures frame the talks. New Delhi prefers selective, incremental easing over sweeping changes. Visa and travel rules are already relaxed, investment restrictions reviewed, while Press Note 3 remains pivotal, with any revisions carefully negotiated going forward nationally.

India is cautiously considering a phased reopening of economic engagement with China, tied to reciprocal steps. Global trade uncertainty and possible US tariff pressures frame the talks. New Delhi prefers selective, incremental easing over sweeping changes. Visa and travel rules are already relaxed, investment restrictions reviewed, while Press Note 3 remains pivotal, with any revisions carefully negotiated going forward nationally.

India Weighs a Gradual Reset in Economic Engagement With China

Sergio Gor stresses that India–US relations remain resilient despite policy differences, supported by the personal rapport between President Trump and Prime Minister Modi. Trade and tariff talks are difficult but ongoing. The US views India as its most critical strategic partner, with cooperation spanning trade, security, technology, and health, reinforcing a broad and durable bilateral partnership.

Sergio Gor stresses that India–US relations remain resilient despite policy differences, supported by the personal rapport between President Trump and Prime Minister Modi. Trade and tariff talks are difficult but ongoing. The US views India as its most critical strategic partner, with cooperation spanning trade, security, technology, and health, reinforcing a broad and durable bilateral partnership.

US Envoy-Designate Highlights Enduring India–US Partnership Amid Trade Talks

International

For the first time, three Indian Air Force instructors have been deployed to RAF Valley to train UK fast-jet pilots on Hawk T2 and Texan T1 aircraft. The two-year posting enhances structured bilateral training. With Indian instructors now present across major UK military academies, the move underscores deepening India–UK strategic defence ties and growing interoperability.

For the first time, three Indian Air Force instructors have been deployed to RAF Valley to train UK fast-jet pilots on Hawk T2 and Texan T1 aircraft. The two-year posting enhances structured bilateral training. With Indian instructors now present across major UK military academies, the move underscores deepening India–UK strategic defence ties and growing interoperability.

Indian Air Force Instructors to Train UK Fast-Jet Pilots in Landmark Defence Exchange

India is emerging as a leading global AI player ahead of the AI Impact Summit, driven by deep tech talent, national strategy, and supportive policies. The IndiaAI Mission seeks to expand computing capacity, boost startups, and advance multilingual AI. With 100 million weekly OpenAI users and strong student engagement, India emphasizes access, adoption, and agency for inclusive, democratic AI growth.

India is emerging as a leading global AI player ahead of the AI Impact Summit, driven by deep tech talent, national strategy, and supportive policies. The IndiaAI Mission seeks to expand computing capacity, boost startups, and advance multilingual AI. With 100 million weekly OpenAI users and strong student engagement, India emphasizes access, adoption, and agency for inclusive, democratic AI growth.

Sam Altman: India Equipped to Lead Global AI Push; OpenAI Plans Government Collaboration

India Stack—Aadhaar, UPI, and e-KYC—has become a global model for digital financial inclusion, with nearly 100 countries exploring replication. India is central to Accion’s strategy, drawing strong fintech investment across stages. Effective regulation, especially RBI leadership, underpins success. Reaching the next billion—rural communities, women, and farmers—will demand deeper innovation and stronger institutions.

India Stack—Aadhaar, UPI, and e-KYC—has become a global model for digital financial inclusion, with nearly 100 countries exploring replication. India is central to Accion’s strategy, drawing strong fintech investment across stages. Effective regulation, especially RBI leadership, underpins success. Reaching the next billion—rural communities, women, and farmers—will demand deeper innovation and stronger institutions.

Nearly 100 Nations Seek to Emulate India Stack’s Transformational Model: Accion President Michael Schlein

Culture

Mahashivaratri 2026 was celebrated at the 9th-century Prambanan Temple, restoring it as a vibrant center of worship. The lighting of 1,008 lamps and devotional chants symbolized unity and awakening. Sacred processions and Abhisekam rituals highlighted purification and harmony. Tradition blended with technology through performances and video mapping, reinforcing interfaith harmony and strengthening India–Indonesia cultural ties.

Mahashivaratri 2026 was celebrated at the 9th-century Prambanan Temple, restoring it as a vibrant center of worship. The lighting of 1,008 lamps and devotional chants symbolized unity and awakening. Sacred processions and Abhisekam rituals highlighted purification and harmony. Tradition blended with technology through performances and video mapping, reinforcing interfaith harmony and strengthening India–Indonesia cultural ties.

Historic Mahashivaratri Celebration Illuminates Prambanan Mahashivagriha, Indonesia

Urban Indian households are adopting AI-powered cooking systems to manage time pressures and inconsistent domestic help. Priced between ₹25,000 and over ₹1.5 lakh, these devices signal early premiumisation. Brands promote automated, home-style meals with minimal oversight. While adoption is growing, the appliances mainly supplement traditional kitchens. Chefs remain skeptical, arguing machines cannot recreate the emotion, memory, and cultural identity embedded in cooking.

Urban Indian households are adopting AI-powered cooking systems to manage time pressures and inconsistent domestic help. Priced between ₹25,000 and over ₹1.5 lakh, these devices signal early premiumisation. Brands promote automated, home-style meals with minimal oversight. While adoption is growing, the appliances mainly supplement traditional kitchens. Chefs remain skeptical, arguing machines cannot recreate the emotion, memory, and cultural identity embedded in cooking.

When Algorithms Enter the Kitchen: Can AI Redefine the Indian Dinner Table?

May the new year bring you happiness, good health, prosperity, and peace. May your home be filled with laughter, your heart with contentment, and your path with success. Wishing you and your loved ones a joyful and prosperous Chinese New Year! Gong Xi Fa Cai!

May the new year bring you happiness, good health, prosperity, and peace. May your home be filled with laughter, your heart with contentment, and your path with success. Wishing you and your loved ones a joyful and prosperous Chinese New Year! Gong Xi Fa Cai!

Welcoming Prosperity and Joy: Chinese New Year Greetings

Insight

China’s rapid AI progress challenges assumptions of U.S. tech dominance. Beijing is pouring billions into development, including an $8.69 billion national fund and a sweeping “AI+” integration strategy. Firms like Huawei and advances in domestic chips are closing gaps with Nvidia. A growing China-centered tech sphere may spread across developing markets, while U.S. AI spending raises sustainability and return concerns.

China’s rapid AI progress challenges assumptions of U.S. tech dominance. Beijing is pouring billions into development, including an $8.69 billion national fund and a sweeping “AI+” integration strategy. Firms like Huawei and advances in domestic chips are closing gaps with Nvidia. A growing China-centered tech sphere may spread across developing markets, while U.S. AI spending raises sustainability and return concerns.

China’s Expanding AI Ambitions Signal a New Era in the Global Tech Race

Slow-moving demographic forces may transform the global system more profoundly than headline crises. Over the next 10–15 years, 1.2 billion young people in developing countries will reach working age, but only 400 million jobs are expected, creating a vast shortfall. This gap poses development, economic, and security risks, yet early investment can convert it into opportunity.

Slow-moving demographic forces may transform the global system more profoundly than headline crises. Over the next 10–15 years, 1.2 billion young people in developing countries will reach working age, but only 400 million jobs are expected, creating a vast shortfall. This gap poses development, economic, and security risks, yet early investment can convert it into opportunity.

How to generate employment for the world's 1.2 billion new workers

India has electrified 99.4% of its Broad Gauge rail network, nearing full transition. Since 2014, 46,900 route km have been electrified, with ₹29,826 crore invested between 2020 and 2025. Diesel use fell 62%—1.78 billion litres—in 2024–25 versus 2016–17, reducing crude imports and costs. Bio-toilets and stronger waste management systems have been deployed nationwide.

India has electrified 99.4% of its Broad Gauge rail network, nearing full transition. Since 2014, 46,900 route km have been electrified, with ₹29,826 crore invested between 2020 and 2025. Diesel use fell 62%—1.78 billion litres—in 2024–25 versus 2016–17, reducing crude imports and costs. Bio-toilets and stronger waste management systems have been deployed nationwide.

Rail electrification drive: Diesel use falls 1.78 billion liters since 2016-17; 99.4% broad gauge network now electrified

India China News, India China Connect, India China update

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