INDIA CHINA Connect

India plans to integrate its UPI system with Indonesia’s payment network, boosting digital transactions. UPI transactions are projected to hit 241.62 billion by FY26, valued at $3.31 trillion. Bilateral trade reached $24.78 billion, with India facing a $15.8 billion trade deficit. Agreements in defense, healthcare, steel, and port development further strengthen ties.

The discovery of two 2,000-year-old gold rings in western Thailand, one inscribed with "pusarakhitasa" in Brahmi script, highlights Thailand's Iron Age (1,500–2,500 years ago). Unearthed alongside eight skeletons bearing gold, bronze jewelry, and pottery, the findings bolster evidence of early trade links between India and Southeast Asia.

Total deal value soared to $36.3 billion in Q2 2026, doubling quarter-over-quarter. However, deal volume dropped 18% to 565 transactions. Outbound M&A accounted for 84% of the value at $23.44 billion. Private equity decreased to $8.4 billion over 325 deals. Despite a funding slowdown, four new unicorns emerged.

The global toy market is projected to reach $179 billion by 2032. In India, the market is expected to hit $5 billion by 2034. Import reductions of 71% were noted by FY26 compared to 2019, while exports reached $186 million. The National Action Plan seeks to establish clusters to enhance the production of “Made in India” toys.

Afternoon naps are integral to Chinese culture, with 72% favoring naps lasting at least 30 minutes. Ancient medical texts endorse midday rest, and despite the demanding "996" work culture, napping remains prevalent. Notably, Shanxi province is celebrated for its nap-friendly practices.

Domestic investors increased their investments by 80% year-over-year, reaching $2.6 billion in H1 2026. Institutional inflows hit a six-year high at $4.5 billion, a 50% rise. Office assets saw a significant surge of 167% to $1.88 billion. However, residential inflows declined by 43% to $470 million. Chennai and Bengaluru contributed 27% of total investments.

Ayush exports surged from $1.09 billion in 2014 to $2.16 billion in 2023, with Ayurveda products now reaching 150 countries. India hosts over 355,000 practitioners, though 95% are domestic. A new roadmap proposes a global registry, licensing reforms, and WHO-supported research. The focus is shifting from raw herb exports to high-value formulations and medical travel.

The corporate bond market grew from $115.8 billion in FY12 to $621.1 billion in FY26, with banks still providing 65% of corporate funding. Retail trades exceeded 2.84 million, while foreign investors held 5.4% of bonds. Market depth is evolving due to reforms, digital platforms, and new products.

PM Modi, alongside President Prabowo Subianto, visited Indonesia’s Prambanan Temple, a UNESCO site showcasing 1,200 years of Hindu heritage. They launched a joint conservation and restoration initiative, emphasizing cultural diplomacy within the Comprehensive Strategic Partnership. The project will be led with support from India’s Archaeological Survey of India (ASI).

DeepSeek is creating an AI inference chip to decrease dependence on Nvidia and Huawei hardware, with Huawei dominating half of China's $50 billion AI chip market. U.S. export restrictions limit access to Nvidia's advanced chips. DeepSeek aims to raise $7 billion, achieving a valuation between $52 and $59 billion.