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INDIA CHINA Connect

Economy

The IMF has raised India’s 2025 growth forecast to 7.3%, driven by stronger corporate earnings and economic momentum. Growth is expected to ease to 6.4% in 2026–27 but remain above global averages. India is set to outperform major economies and lead emerging Asia, as global growth holds at 3.3% amid AI investment, despite risks from valuations, trade tensions, and geopolitics.

The IMF has raised India’s 2025 growth forecast to 7.3%, driven by stronger corporate earnings and economic momentum. Growth is expected to ease to 6.4% in 2026–27 but remain above global averages. India is set to outperform major economies and lead emerging Asia, as global growth holds at 3.3% amid AI investment, despite risks from valuations, trade tensions, and geopolitics.

IMF Lifts India’s Growth Forecast to 7.3% as Earnings Rebound and Global Economy Stabilises

India and the UAE aim to reach $200 billion in bilateral trade by 2032 under CEPA, underscoring closer economic ties. A long‑term LNG agreement strengthens India’s energy security. Cooperation in defence, space, and supercomputing signals high‑tech alignment, while investments in Dholera SIR and GIFT City deepen industrial and financial integration, complemented by strong cultural and people‑to‑people links.

India and the UAE aim to reach $200 billion in bilateral trade by 2032 under CEPA, underscoring closer economic ties. A long‑term LNG agreement strengthens India’s energy security. Cooperation in defence, space, and supercomputing signals high‑tech alignment, while investments in Dholera SIR and GIFT City deepen industrial and financial integration, complemented by strong cultural and people‑to‑people links.

India–UAE Set Trade Goal to $200 billion by 2032; deals on LNG, defence, and space

Startup India marks a decade with startups raising $151 billion and producing 118 unicorns. More than 25,000 funding rounds since 2016 have made India a major global startup hub. Registered startups grew from 500 to over 200,000, supported by policy reforms. After funding peaked in 2021–22 and slowed post‑2022, attention is shifting to sustainable, execution‑focused, deep‑tech‑driven growth.

Startup India marks a decade with startups raising $151 billion and producing 118 unicorns. More than 25,000 funding rounds since 2016 have made India a major global startup hub. Registered startups grew from 500 to over 200,000, supported by policy reforms. After funding peaked in 2021–22 and slowed post‑2022, attention is shifting to sustainable, execution‑focused, deep‑tech‑driven growth.

A Decade of Startup India: $151 billion raised, 118 unicorns minted

Politics

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

President Xi Jinping said China’s anti-corruption campaign remains complex and long-term, urging stricter Party self-governance and zero tolerance for graft. Speaking to discipline watchdogs, he called for curbing collusion between officials and business, strengthening oversight, enforcing discipline, and sustaining reforms to ensure officials neither dare nor desire to be corrupt.

President Xi Jinping said China’s anti-corruption campaign remains complex and long-term, urging stricter Party self-governance and zero tolerance for graft. Speaking to discipline watchdogs, he called for curbing collusion between officials and business, strengthening oversight, enforcing discipline, and sustaining reforms to ensure officials neither dare nor desire to be corrupt.

Xi Jinping Reaffirms Zero-Tolerance Stance as China Intensifies Anti-Corruption Drive

International

The long‑negotiated India–EU free trade agreement, launched in 2007, is nearing conclusion at the January 27 summit. Covering markets of almost two billion people, the deal seeks to expand trade and investment, strengthen supply‑chain resilience, and deliver gains in market access, exports, services growth, and strategic economic diversification amid global disruptions.

The long‑negotiated India–EU free trade agreement, launched in 2007, is nearing conclusion at the January 27 summit. Covering markets of almost two billion people, the deal seeks to expand trade and investment, strengthen supply‑chain resilience, and deliver gains in market access, exports, services growth, and strategic economic diversification amid global disruptions.

Mother of all deals - India and the EU on the Brink of a Landmark Trade Pact

Temu’s cross‑border market share jumped from under 1% in 2022 to 24%, equaling Amazon worldwide. Amazon’s share has slipped as Chinese platforms expand. Shein remained stable, while AliExpress and eBay declined. Temu’s rise reflects low‑cost Chinese sourcing, heavy marketing, and fast global rollout, though upcoming US and EU regulations could alter competition.

Temu’s cross‑border market share jumped from under 1% in 2022 to 24%, equaling Amazon worldwide. Amazon’s share has slipped as Chinese platforms expand. Shein remained stable, while AliExpress and eBay declined. Temu’s rise reflects low‑cost Chinese sourcing, heavy marketing, and fast global rollout, though upcoming US and EU regulations could alter competition.

Temu’s Rapid Rise Redraws the Map of Global Cross-Border Shopping

Trump’s welfare data triggered online backlash, even though India was not among high-usage countries. Evidence shows Indian-Americans have low welfare dependence, high incomes and strong workforce participation. Despite being only 1.5% of the U.S. population, they contribute 5–6% of tax revenues and play outsized roles in innovation, leadership and job creation.

Trump’s welfare data triggered online backlash, even though India was not among high-usage countries. Evidence shows Indian-Americans have low welfare dependence, high incomes and strong workforce participation. Despite being only 1.5% of the U.S. population, they contribute 5–6% of tax revenues and play outsized roles in innovation, leadership and job creation.

Facts Speak Louder: Why Indian Americans Are Among America’s Greatest Assets

Culture

The initiative revives India’s 2,000-year-old stitched-shipbuilding tradition, retracing historic India–West Asia trade routes without engine power. Inspired by Ajanta cave art and built through Navy–Culture Ministry collaboration, it showcases indigenous craftsmanship and maritime symbolism. The project strengthens India–Oman cultural ties and promotes heritage-led, eco-friendly maritime cooperation.

The initiative revives India’s 2,000-year-old stitched-shipbuilding tradition, retracing historic India–West Asia trade routes without engine power. Inspired by Ajanta cave art and built through Navy–Culture Ministry collaboration, it showcases indigenous craftsmanship and maritime symbolism. The project strengthens India–Oman cultural ties and promotes heritage-led, eco-friendly maritime cooperation.

INSV Kaundinya’s 2000-year-old technique Revives India’s Ancient Maritime Legacy

PM Modi described the Somnath Temple as a symbol of India’s enduring faith, resilience and civilisational continuity. He recalled ancestral sacrifices to protect it, saying repeated destruction failed to erase its spiritual identity. Modi alleged history was whitewashed by downplaying ideological attacks. Somnath Swabhiman Parv commemorates 1,000 years of devotion, resilience and national pride.

PM Modi described the Somnath Temple as a symbol of India’s enduring faith, resilience and civilisational continuity. He recalled ancestral sacrifices to protect it, saying repeated destruction failed to erase its spiritual identity. Modi alleged history was whitewashed by downplaying ideological attacks. Somnath Swabhiman Parv commemorates 1,000 years of devotion, resilience and national pride.

Somnath at a Millennium: Modi Highlights a Legacy of Faith, Resistance, and Renewal

The first gallery of Delhi’s Yuge Yugeen Bharat Museum will open by year-end in the North Block. Envisioned as the world’s largest museum, it will house 80,000–100,000 artefacts across repurposed North and South Blocks. Spanning 155,000 sqm, nearly 30 thematic galleries will trace 5,000 years of Indian civilisation, attracting an estimated 10 million visitors annually.

The first gallery of Delhi’s Yuge Yugeen Bharat Museum will open by year-end in the North Block. Envisioned as the world’s largest museum, it will house 80,000–100,000 artefacts across repurposed North and South Blocks. Spanning 155,000 sqm, nearly 30 thematic galleries will trace 5,000 years of Indian civilisation, attracting an estimated 10 million visitors annually.

'Yuge Yugeen Bharat Museum’: India’s 5,000-year journey under one roof

Insight

Advanced mobility and clean‑energy technologies in China are shifting from pilots to everyday use. Heavy state investment is speeding adoption of EVs, battery swapping, autonomous vehicles, drones, and high‑speed rail. Automation is transforming logistics and urban transit efficiency. China’s scale, pace, and risk tolerance drive global leadership, despite debt pressures, regulatory constraints, and uneven outcomes.

Advanced mobility and clean‑energy technologies in China are shifting from pilots to everyday use. Heavy state investment is speeding adoption of EVs, battery swapping, autonomous vehicles, drones, and high‑speed rail. Automation is transforming logistics and urban transit efficiency. China’s scale, pace, and risk tolerance drive global leadership, despite debt pressures, regulatory constraints, and uneven outcomes.

China Pushes Transportation and Energy Technologies Into Daily

India is projected to reach the World Bank’s upper‑middle‑income category by 2030, with per capita GNI nearing $4,000. Economic growth has accelerated, pushing GDP toward $5 trillion, while per capita income has doubled since 2009. India’s global growth ranking has improved markedly, and sustained momentum underpins its long‑term ambition of becoming a high‑income economy.

India is projected to reach the World Bank’s upper‑middle‑income category by 2030, with per capita GNI nearing $4,000. Economic growth has accelerated, pushing GDP toward $5 trillion, while per capita income has doubled since 2009. India’s global growth ranking has improved markedly, and sustained momentum underpins its long‑term ambition of becoming a high‑income economy.

India’s Ascent: On Track to Join the Upper-Middle-Income League by 2030

China’s population declined for a fourth consecutive year in 2025, falling by 3.39 million. Births dropped to a record low of 7.92 million as fertility stayed far below replacement, while deaths rose to their highest rate since 1968. Pro‑birth incentives have failed, and a shrinking workforce with rapid ageing poses serious long‑term economic risks.

China’s population declined for a fourth consecutive year in 2025, falling by 3.39 million. Births dropped to a record low of 7.92 million as fertility stayed far below replacement, while deaths rose to their highest rate since 1968. Pro‑birth incentives have failed, and a shrinking workforce with rapid ageing poses serious long‑term economic risks.

China’s Demographic Slide Deepens as Births Hit Historic Lows

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