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INDIA CHINA Connect

Economy

The United States reduced additional tariffs on Indian goods from 50% to 18%, improving export competitiveness. Textiles, leather, and seafood are key beneficiaries. The move followed Modi–Trump phone talks signaling warmer bilateral ties. India now enjoys a tariff edge over several Asian peers, while Trump’s energy and Russia-related claims remain unconfirmed by New Delhi, according to recent official statements there.

The United States reduced additional tariffs on Indian goods from 50% to 18%, improving export competitiveness. Textiles, leather, and seafood are key beneficiaries. The move followed Modi–Trump phone talks signaling warmer bilateral ties. India now enjoys a tariff edge over several Asian peers, while Trump’s energy and Russia-related claims remain unconfirmed by New Delhi, according to recent official statements there.

India–US Trade Breakthrough Lowers Tariffs to 18%, Signals New Momentum in Bilateral Ties

Global real GDP growth is projected at 3.1% in 2026, led largely by emerging markets. China and India together generate over 43% of worldwide growth, at 26.6% and 17% respectively. Advanced economies are losing influence, with the U.S. and EU contributing about 16%. Asia-Pacific dominates regionally, accounting for nearly 60% of global growth, underscoring shifting economic power in coming years.

Global real GDP growth is projected at 3.1% in 2026, led largely by emerging markets. China and India together generate over 43% of worldwide growth, at 26.6% and 17% respectively. Advanced economies are losing influence, with the U.S. and EU contributing about 16%. Asia-Pacific dominates regionally, accounting for nearly 60% of global growth, underscoring shifting economic power in coming years.

China and India Powering Global Economic Growth in 2026

Larry Fink calls the next 20–25 years the “Era of India,” naming it his top long-term investment destination. He expects 8–10% growth for the next decade or more. Strong domestic savings, supported by foreign capital, underpin this outlook. Broader market participation and sustained AI investment are seen as critical for India’s future global leadership and economic transformation over the long term.

Larry Fink calls the next 20–25 years the “Era of India,” naming it his top long-term investment destination. He expects 8–10% growth for the next decade or more. Strong domestic savings, supported by foreign capital, underpin this outlook. Broader market participation and sustained AI investment are seen as critical for India’s future global leadership and economic transformation over the long term.

Next 20-25 years will be era of India: BlackRock CEO Larry Fink

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

Indian student interest shifted sharply in 2025, with Europe seeing strong growth as the US and Canada declined. US-bound Indian students dropped nearly 30% due to tighter visas and rising costs. European destinations grew 62%, led by Germany, Italy, and France. Lower tuition fees, better return on investment, and student-friendly immigration and work policies are driving Europe’s increasing appeal among Indian students.

Indian student interest shifted sharply in 2025, with Europe seeing strong growth as the US and Canada declined. US-bound Indian students dropped nearly 30% due to tighter visas and rising costs. European destinations grew 62%, led by Germany, Italy, and France. Lower tuition fees, better return on investment, and student-friendly immigration and work policies are driving Europe’s increasing appeal among Indian students.

Europe as a Preferrence for Indian Students; US sees 30% drop in 2025

India is considering linking UPI with Alipay+ to enable seamless cross‑border digital payments. This could allow Indian travelers to use UPI at millions of international merchants. While UPI processes around 18 billion transactions monthly and Alipay+ offers wide global reach, discussions signal cautious warming of India–China ties and remain subject to security, regulatory, and geopolitical scrutiny.

India is considering linking UPI with Alipay+ to enable seamless cross‑border digital payments. This could allow Indian travelers to use UPI at millions of international merchants. While UPI processes around 18 billion transactions monthly and Alipay+ offers wide global reach, discussions signal cautious warming of India–China ties and remain subject to security, regulatory, and geopolitical scrutiny.

India Weighs Alipay+ Link-Up to Expand UPI’s Global Reach

India's Union Budget 2026 proposes a tax holiday until 2047 for foreign cloud companies operating India-based data centres. The move aims to attract global investment and strengthen digital infrastructure. While global income of foreign providers is exempt, Indian resellers remain taxable. The policy is expected to boost data centre investment, job creation, and position India as a global cloud and AI hub.

India's Union Budget 2026 proposes a tax holiday until 2047 for foreign cloud companies operating India-based data centres. The move aims to attract global investment and strengthen digital infrastructure. While global income of foreign providers is exempt, Indian resellers remain taxable. The policy is expected to boost data centre investment, job creation, and position India as a global cloud and AI hub.

India Unveils 20-Year Tax Break for Global Data Centers

Culture

Research confirms millet-based agriculture as the dietary foundation in Lüliang during the Eastern Zhou Dynasty. Isotope analysis reveals notable population movement and cultural interaction in this frontier region. Despite diverse burial customs, communities shared common food practices. The findings highlight Lüliang’s integrative role in early Chinese civilization formation and demonstrate how scientific techniques can precisely trace ancient diet and migration patterns.

Research confirms millet-based agriculture as the dietary foundation in Lüliang during the Eastern Zhou Dynasty. Isotope analysis reveals notable population movement and cultural interaction in this frontier region. Despite diverse burial customs, communities shared common food practices. The findings highlight Lüliang’s integrative role in early Chinese civilization formation and demonstrate how scientific techniques can precisely trace ancient diet and migration patterns.

Millet staple food in ancient China, Lüliang 2,000 years ago: archaeological analyses

Indian cuisine became an unexpected highlight at Davos alongside WEF meetings. Akshaya Patra Foundation’s khichdi drew long queues of global delegates, offering warmth in freezing Swiss weather. Samosas and pakoras were also popular. Social media buzz around the food reflected India’s growing cultural visibility and expanding economic influence on the global stage.

Indian cuisine became an unexpected highlight at Davos alongside WEF meetings. Akshaya Patra Foundation’s khichdi drew long queues of global delegates, offering warmth in freezing Swiss weather. Samosas and pakoras were also popular. Social media buzz around the food reflected India’s growing cultural visibility and expanding economic influence on the global stage.

From Boardrooms to Food Stalls: Indian Cuisine Steals the Spotlight at Davos

The UK’s first national Hindu NHS Network has been launched to support Hindu staff and improve culturally sensitive patient care. It addresses gaps in faith representation and understanding, promotes Hindu chaplaincy, prayer spaces, end‑of‑life care, and appropriate vegetarian food, and seeks to empower staff through visibility, leadership opportunities, career development, and fair workplace practices across the NHS.

The UK’s first national Hindu NHS Network has been launched to support Hindu staff and improve culturally sensitive patient care. It addresses gaps in faith representation and understanding, promotes Hindu chaplaincy, prayer spaces, end‑of‑life care, and appropriate vegetarian food, and seeks to empower staff through visibility, leadership opportunities, career development, and fair workplace practices across the NHS.

NHS Launches First National Hindu Network to Support Staff and Patients

Insight

Indian households are steadily reallocating savings from traditional deposits to equities and market-linked instruments. The equity and mutual fund share of household savings climbed from about 2% in FY12 to over 15% in FY25. Surging SIP inflows show disciplined long-term investing. Declining reliance on term deposits reflects diversification, not replacement, while rising direct and indirect participation has substantially increased household equity wealth.

Indian households are steadily reallocating savings from traditional deposits to equities and market-linked instruments. The equity and mutual fund share of household savings climbed from about 2% in FY12 to over 15% in FY25. Surging SIP inflows show disciplined long-term investing. Declining reliance on term deposits reflects diversification, not replacement, while rising direct and indirect participation has substantially increased household equity wealth.

India Economic Survey: Mutual funds' share of household savings jumps sevenfold, FDs slip to 35%

China is executing the world’s largest energy expansion to power future industries. In 2024, it added 543 GW of capacity—more than India’s entire system and faster than the US. The strategy emphasizes energy security, reduced imports, and low power costs, spanning solar, wind, coal, nuclear, and hydropower, with grid efficiency and market reforms next.

China is executing the world’s largest energy expansion to power future industries. In 2024, it added 543 GW of capacity—more than India’s entire system and faster than the US. The strategy emphasizes energy security, reduced imports, and low power costs, spanning solar, wind, coal, nuclear, and hydropower, with grid efficiency and market reforms next.

China’s Power Surge: Inside the World’s Most Ambitious Energy Expansion

India’s Bharatmala Pariyojana has completed over 21,700 km of highways by December 2025. The programme targets 34,800 km to improve connectivity and cut logistics costs. Projects spanning 26,425 km have been awarded, with ₹4.93 lakh crore spent. The initiative prioritizes freight corridors, urban decongestion, regional inclusion, and completion of all projects by FY 2027–28 across states nationwide under the plan.

India’s Bharatmala Pariyojana has completed over 21,700 km of highways by December 2025. The programme targets 34,800 km to improve connectivity and cut logistics costs. Projects spanning 26,425 km have been awarded, with ₹4.93 lakh crore spent. The initiative prioritizes freight corridors, urban decongestion, regional inclusion, and completion of all projects by FY 2027–28 across states nationwide under the plan.

Bharatmala Gains Momentum as India Crosses 21,000 Km Milestone in Highway Construction

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