INDIA CHINA Connect

US-sanctioned Chinese firms boosted science-linked patent activity by 72% by leveraging public academic literature after losing access to restricted tech. This may foster distinct US and China-led tech ecosystems. Despite rapid growth, Chinese firms lag behind US companies in patent depth. However, China's rare earth dominance provides a counterbalance in the ongoing technology rivalry.

India leads as the top origin for immigrant billionaires in the US, with 19 on Forbes' 2026 list. Seven new Indian-American billionaires joined this year, including Hemant Taneja and Shyam Sankar. Vinod Khosla is the wealthiest, valued at USD 13.9 billion. Forbes reports 144 immigrant billionaires in total, amassing a combined wealth of USD 2.2 trillion.

India assembles nearly all phones sold locally, but only adds less than 20% in value. The ECMS initiative targets boosting local mobile component production to nearly 50% by FY32. The scheme's budget has risen to around USD 4.21 billion, with approved projects involving approximately USD 7.32 billion in investments, focusing on PCBs, displays, cameras, batteries, and enclosures.

Moody's upgraded India's FY27 real GDP growth forecast to 7% from 6%, citing resilience amid Middle East tensions and high oil prices. GDP growth was 7.8% in April-June, surpassing expectations, driven by robust consumption, investment, manufacturing, and services. However, risks persist from oil prices, inflation, tariffs, rupee pressure, and fiscal challenges.

Indian student departures for education abroad dropped from 908,364 in 2023 to 626,606 in 2025 due to rising costs, visa limits, and political uncertainty. Indian universities, like IITs and IISc, are gaining global recognition. Students prefer foreign university programs offered domestically, adopting a model of studying in India first and seeking overseas exposure later.

Hong Kong retained its position as Asia's leading financial hub for the fourth consecutive GFCI edition and ranked third globally, following New York and London. It excelled in financial sector development, fintech, investment management, and insurance, with assets under management hitting USD 2.95 trillion by 2025. Shanghai, Shenzhen, Tokyo, and Seoul enhanced Asia-Pacific's influence in the top 10.

India's private space sector is rapidly expanding in communication, surveillance, satellites, and launch services, aiming to increase its share of the global space economy from 2–2.5% to 8–10%. The space economy is projected to grow from USD 8.5 billion to USD 44 billion. Key milestones by firms like Skyroot highlight progress, though a dedicated Space Act is needed for regulation clarity.

India-US space relations are evolving from cooperation to co-creation, highlighted by joint efforts on instruments, startups, and data. Ambassador Sergio Gor cited NISAR's role in disaster response and noted NASA's invitation to ISRO for the Moon base program. He encouraged Indian space startups to explore American markets and investors, marking a significant partnership expansion in space exploration.

China inaugurated the 134.2 km Pinglu Canal, connecting Nanning to the Beibu Gulf, eliminating a 560 km detour via Guangzhou for inland shipments. With a cost of USD 10.8 billion, it accommodates 5,000-tonne vessels, potentially saving over USD 52.6 million annually in transport costs. China-Asean trade rose to USD 862.75 billion in eight months, a 25.6% increase.

India and China have resumed trade discussions post-BRICS Summit, focusing on India's trade deficit and market access. Economic ties had weakened since 2020. Meanwhile, India expects the India-New Zealand FTA to start in October and is advancing trade negotiations with Canada and the U.S.