INDIA CHINA Connect

Prime Minister Narendra Modi, in his Navratri message, introduced the Next Generation GST reforms, reducing tax slabs to 5% and 18%, benefiting essentials like food and medicines. These reforms, along with income tax cuts, aim to save citizens ₹2.5 lakh crore, boosting affordability and aspirations. Emphasizing "Aatmanirbhar Bharat," he urged support for Indian-made products, promoting local manufacturing and MSME growth. Modi reiterated India’s goal of “Viksit Bharat” by 204

Nabard’s September 2025 survey highlights cautious optimism among rural households, with 72.8% expecting income growth, slightly down from July's 74.7%. While income stagnation rose to 44.5%, fewer reported losses. Consumption remains resilient, but severe floods and GST changes influenced spending trends. Borrowing shifted toward formal sources, and infrastructure improvements and government welfare schemes continue to support rural incomes. The survey underscores the import

Union Finance Minister Nirmala Sitharaman highlighted GST reforms' transformative impact, infusing ₹2 trillion into the economy and reducing tax burdens on citizens. Key changes include shifting 99% of items from the 12% slab to 5%, benefiting the middle class. GST revenues rose to ₹22.08 trillion, with taxpayers increasing from 6.5 million to 15.1 million. Sitharaman emphasized these reforms significantly boost affordability, economic inclusivity, and India’s growth trajecto

India has witnessed a remarkable rise in millionaire households, doubling from 4.58 lakh in 2021 to 8.71 lakh in 2025, with one added every 30 minutes. Maharashtra leads with 1,78,600 households, followed by Delhi and Bengaluru. Key drivers include robust equity markets, surging gold prices, and luxury consumption. Despite this growth, wealth remains concentrated, with ultra-rich status elusive. India is poised to become the fastest-growing wealth hub globally.

India’s exports rose 6.7% YoY to $35.1 billion in August, aided by a low base but challenged by US tariffs and global uncertainties. Imports dropped 10.13%, narrowing the trade deficit to $26.49 billion. Services exports grew 12.18%, with a surplus of $16.61 billion. Non-petroleum exports increased 6.1%, driven by electronics and pharmaceuticals. However, escalating US tariffs may impact September exports, with government reforms aiming to boost competitiveness.

Accelerated AI adoption in India could contribute $500-600 billion to GDP by 2035, driven by productivity gains in financial services and manufacturing. A NITI Aayog report highlights AI’s potential to close the gap between India’s projected $6.6 trillion GDP and its $8.3 trillion target under the Viksit Bharat 2047 framework. Key sectors like space tech, R&D, and financial innovation could fuel growth, with new initiatives fostering AI-driven economic transformation.

India’s unemployment rate fell to 5.1% in August 2025, its second consecutive monthly decline, driven by improvements in rural and male employment. Rural unemployment dropped to 4.3%, while male unemployment hit a five-month low at 5%. Women’s Worker Population Ratio (WPR) and Labour Force Participation Rate (LFPR) also rose, reflecting increased workforce involvement. The Periodic Labour Force Survey (PLFS) highlights a positive recovery in India’s labour market across rural

India’s bioeconomy has grown from 10billionin2014to10 billion in 2014 to 10billionin2014to165.7 billion in 2024, with a $300 billion target by 2030. Key sectors include BioIndustrial, BioPharma, BioAgri, and BioResearch. India leads in vaccine production, achieving 20% ethanol blending ahead of schedule, boosting farmer incomes, energy security, and sustainability. The BioE3 Policy promotes green growth and regenerative practices, positioning India as a global leader in biote

India's real estate sector is projected to grow into a USD 5–10 trillion market by 2047, contributing nearly 20% to the GDP. This growth, driven by urbanization, infrastructure development, and investor interest, will see residential, commercial, and industrial real estate flourish. Emerging segments like data centers and co-living spaces are set to expand, while REITs will play a key role. The sector aims to enhance both economic growth and citizens’ quality of life.

India’s Q1 FY26 GDP growth of 7.8% underscores the economy's resilience and strength, supported by robust private consumption, investment, and a standout services sector. S&P’s credit rating upgrade highlights improved inflation trends and infrastructure investments, while rural wages and agricultural growth further reinforce economic stability. The services sector, driven by tourism, housing loans, and low inflation, has been a key growth engine. Despite global challenges li

India has seen a remarkable surge in business registrations, with 20,170 companies and 6,939 LLPs incorporated in August, reflecting investor confidence despite global uncertainties and new US tariffs. Key factors include India's 7.8% GDP growth in Q2, domestic reforms like GST, and a strong services sector. Trade agreements with the UK and ongoing talks with the EU and US further bolster prospects. While challenges remain, India is poised to maintain its status as the world’

India’s economy is projected to reach $20.7 trillion (PPP) by 2030 and $34.2 trillion by 2038, potentially becoming the second-largest economy globally. EY’s 2025 report highlights India’s strong fundamentals, including high savings, skilled workforce, and advanced technology capabilities, enabling resilience amid global challenges like U.S. tariffs. Though these tariffs may impact export sectors, strategic measures could minimize effects on GDP. With robust trade ties and su

Prime Minister Narendra Modi, speaking at the ET World Leaders Forum 2025, highlighted India’s growing influence on the global economy, with experts forecasting a 20% contribution in the coming years. He credited a decade of macroeconomic stability for India’s resilience, citing fiscal deficit reduction and robust fundamentals. PM Modi emphasized transformative progress, noting achievements in space missions, defense production, and semiconductor manufacturing. He outlined re

India is implementing GST reforms, consolidating tax slabs to 5% and 18%, to boost consumption and ease compliance. Labour-intensive sectors like textiles and leather may benefit from lower rates. The Pradhan Mantri Viksit Bharat Rozgar Yojana aims to create 3.5 crore jobs with ₹1 lakh crore in funding. Amid U.S. tariff hikes, India is focusing on its domestic market, providing credit support to businesses and promoting competitiveness. These efforts aim to strengthen resilie

India is set to exceed last year’s export performance despite facing a 50% tariff increase by the US, which could reduce exports to the US by 40%. Commerce Minister Piyush Goyal expressed optimism, emphasizing India’s resilience and global trade ambitions. With record-breaking exports of $824.9 billion last year and ongoing trade agreements with various nations, India’s economic growth remains strong. Goyal highlighted India’s demographic and economic advantages, underscoring

India's diamond industry, centered in Surat, faces challenges from U.S. tariffs, global disruptions, and the rise of lab-grown diamonds. Once a global leader, exporting $13.2 billion in 2024-25, the sector struggles with a 52.1% tariff on U.S. imports, pandemic impacts, and reduced demand. Employment for over 2 million workers has been hit hard. However, growth in India's domestic jewelry market and diversification into new regions like Latin America offer hope. Adapting to s

India’s venture capital sector is rebounding strongly in 2025 after a slow 2024, raising $3.2 billion so far, surpassing last year’s $2.7 billion. Key players like Accel and A91 Partners are driving momentum, with total fundraising potentially reaching $4.6 billion. Improved startup quality, attractive valuations, and better exit opportunities, including IPOs from firms like Lenskart and Meesho, are fueling growth. India’s macroeconomic stability and rising global investor in

US tariffs on Indian exports, raised to 50%, are unlikely to significantly impact India’s growth due to its limited export dependency, as per S&P Global Ratings. Moody’s predicts a minor 0.3% GDP dip in 2025-26, while strong domestic demand and services will offset losses. Key sectors like pharmaceuticals remain exempt, and India’s diversified oil imports reduce energy risks. Despite challenges to manufacturing ambitions, India’s large domestic market and "China plus one" str

The IMF revised India’s growth forecast to 6.4% for 2025 and 2026, up from earlier estimates of 6.2% and 6.3%, reaffirming its lead as the fastest-growing major economy. Global growth was also upgraded to 3.0% in 2025 and 3.1% in 2026, driven by reduced tariff impacts, a weaker US dollar, and fiscal expansion. India’s robust performance, supported by external stability, outpaces China and the US. Despite risks like tariff uncertainties, the IMF highlights trade negotiations a

The India-UK Comprehensive Economic and Trade Agreement (CETA) marks a major milestone in India’s global trade strategy. Spearheaded by Piyush Goyal, it boosts market access, eliminates tariffs on 99% of goods, and is set to double bilateral trade to $100 billion by 2030. CETA empowers farmers, artisans, fishermen, and small businesses, creating numerous jobs and improving exports in textiles, agriculture, and services. It reflects India’s innovative FTA approach, aligning wi