INDIA CHINA Connect

India’s export landscape is shifting from oil to electronics, driven by a 42% surge in electronics exports during the first half of FY26, reaching $22.2 billion.

India's outward remittances under the Liberalised Remittance Scheme (LRS) fell 17.7% YoY in August 2025, reaching $2.6 billion, mainly due to reduced spending on international travel and education amid US visa restrictions.

Diwali 2025 marked a record-breaking ₹6.05 trillion in sales, with significant growth driven by the "Vocal for Local" campaign, reduced GST rates, and high consumer confidence.

India is adopting a stronger, strategic approach to free trade agreements (FTAs), prioritizing national interests and avoiding imbalanced deals, said Commerce Minister Piyush Goyal.

The Jain community, led by the Jain International Trade Organisation (JITO), leveraged its collective buying power to secure ₹21 crore in discounts on 186 luxury cars from brands like BMW, Audi, and Mercedes.

The IMF raised India’s 2025-26 growth forecast to 6.6%, citing strong domestic performance offsetting U.S. tariff impacts.

India’s primary markets have had a remarkable year in 2025, securing the fourth-largest global tally in funds raised via initial public offerings (IPOs).

China's 15th five-year plan aims to address economic challenges as private sector struggles with sluggish demand, regulatory hurdles, and uneven competition with state-owned enterprises (SOEs). Generating 60% of GDP and 80% of urban jobs, private firms remain critical but hesitant to invest.

A sweeping GST reduction on 375 items drove record-breaking Navratri sales in India, marking the highest in over a decade.

India recorded its highest Foreign Direct Investment (FDI) inflows in over four years, with $11.11 billion in July 2025, driven by contributions from Singapore and key sectors like manufacturing and services. Net FDI rose to $5.05 billion, reflecting economic resilience amid global uncertainties. Recent credit rating upgrades by S&P and government reforms, including GST cuts, have bolstered investor confidence. This surge follows a challenging fiscal year but signals a promis

China is advancing the global adoption of its digital yuan (e-CNY) to challenge the US dollar's dominance in cross-border payments. The People's Bank of China (PBOC) launched an International Operations Centre in Shanghai, featuring platforms for efficient transactions, blockchain payments, and digital asset services. Amid trade tensions with the US and stablecoin developments, China is leveraging blockchain technology and international collaborations to expand the e-CNY's fo

India’s IPO market has rebounded impressively, doubling its fundraising to $20.5 billion between October 2024 and September 2025, despite broader market declines. Key drivers include domestic investor interest, high-value IPOs like HDB Financial Services and Hexaware, and sectoral diversity. Over 150 IPOs worth $36.1 billion are in the pipeline, spanning tech, NBFCs, and renewable energy. This momentum signals continued opportunities in the primary market amid secondary marke

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