Economy 3/66

Amazon will invest $35 billion in India by 2030 to expand AI capabilities, boost exports, and create jobs, building on over $40 billion already invested. The plan targets 3.8 million jobs, $80 billion in e-commerce exports, and widespread AI adoption, including programs for small businesses and students, reinforcing India’s fast-growing digital economy.

Amazon follows Microsoft’s lead with a bold move, unveiling a $35B investment plan for India by 2030

Amazon will invest $35 billion in India by 2030 to expand AI capabilities, boost exports, and create jobs, building on over $40 billion already invested.

Microsoft will invest $17.5 billion in India to expand AI and cloud infrastructure, its largest Asian commitment. The move strengthens India’s data centres, cloud regions and AI capabilities while supporting major skilling initiatives. With new sovereign cloud services and rapid infrastructure expansion, Microsoft positions India as a key global AI hub and deepens its long‑term partnership with the country.

Microsoft’s Massive AI Bet $17.5 Billion in India as a Global Tech Powerhouse

Microsoft will invest $17.5 billion in India to expand AI and cloud infrastructure, its largest Asian commitment.

The IMF forecasts China will grow 5 percent in 2025 and 4.5 percent in 2026, citing stimulus and resilience despite trade tensions. It warns of property‑sector weaknesses, weak demand, and deflation risks, urging a shift toward consumption‑led growth and deeper reforms. Beijing has introduced supportive measures, while Premier Li calls for openness and avoiding politicised trade.

China’s Growth Outlook Brightens as IMF raises growth forecast to 5% for 2025

The IMF forecasts China will grow 5 percent in 2025 and 4.5 percent in 2026, citing stimulus and resilience despite trade tensions.

India must import key components to scale electronics exports, industry leaders said at a Lucknow summit. They highlighted China’s model, India’s cost disadvantages, and the need for a global outlook. Uttar Pradesh was praised for improving its investment climate but urged to boost outreach. Collaboration between government and industry remains essential to strengthen India’s manufacturing ecosystem.

India's Electronics Manufacturing Ambitions Require Strategic Import-Export Balance

India must import key components to scale electronics exports, industry leaders said at a Lucknow summit.

India’s economy grew 8.2 percent in Q2 FY26, driven by strong manufacturing and services. Consumption and investment stayed firm despite lower government spending, while imports outpaced exports. Nominal growth eased due to low inflation. With first‑half growth near 8 percent, India remains on track to exceed 7 percent for FY26, though some moderation is expected ahead.

India’s Growth Momentum Strengthens as Economy Posts Six Quarter High at 8.2%

India’s economy grew 8.2 percent in Q2 FY26, driven by strong manufacturing and services. Consumption and investment stayed firm despite lower government spending, while imports outpaced exports.

India’s July–September 2025 GDP grew 8.2%, with low inflation and financial stability despite global turmoil. Sanjeev Sanyal credits a decade of reforms—from GST, IBC and inflation‑targeting to sector openings and infrastructure push—for boosting productivity. The third Modi government is now rationalising GST, implementing labour codes, and easing QCOs, following a consistent, pragmatic, innovation‑focused policy approach.

Is there a method to Modinomics?

India’s July–September 2025 GDP grew 8.2%, with low inflation and financial stability despite global turmoil. Sanjeev Sanyal credits a decade of reforms—from GST, IBC and inflation‑targeting to sector openings and infrastructure push—for boosting productivity.

India’s exports to China rose 24.7% to $10.03 billion between April and October, driven by petroleum, telecom, and marine goods, even as overall exports stagnated. This growth helped offset the impact of US tariffs. Despite the momentum, India’s trade deficit with China hit $64 billion. Officials view the steady monthly gains as a positive trend for FY26.

India’s Rising Exports to China Offer Cushion Against Global Trade Headwinds

India’s exports to China rose 24.7% to $10.03 billion between April and October, driven by petroleum, telecom, and marine goods, even as overall exports stagnated.

India’s record rice surplus is straining storage and prompting a push for new export opportunities. While production and global share are soaring, weak demand, strong competition, and earlier export bans pose challenges. Exporters aim to enter premium markets like Japan and Southeast Asia by improving quality and supply chains. Success hinges on shifting from volume to high‑value, consistent rice exports.

India’s Rice Mountain: How Can the World’s Biggest Producer Turn Surplus Into Strategy?

India’s record rice surplus is straining storage and prompting a push for new export opportunities.

India’s new Labour Codes replace 29 older laws with a unified system that boosts worker protection, expands social security, and modernises rules for a digital economy. The reforms enhance business clarity, support gig workers, improve mobility of benefits, encourage women’s participation, and increase operational flexibility—strengthening India’s competitiveness and preparing its workforce for future growth.

India’s Labour Codes Usher In a New Era for Workers and Industry

India’s new Labour Codes replace 29 older laws with a unified system that boosts worker protection, expands social security, and modernises rules for a digital economy.

India’s retail market is projected to hit $1 trillion by 2030, powered by higher incomes, digital adoption, and evolving consumer aspirations. Traditional trade will decline as e-commerce, D2C, and quick commerce expand. With 1.1 billion internet users, India’s digital-native brands will thrive, creating culturally rooted yet modern businesses shaping a dynamic, tech-driven retail future.

India’s Retail Revolution: Digital Shoppers and the Rise of a $1 Trillion Market

India’s retail market is projected to hit $1 trillion by 2030, powered by higher incomes, digital adoption, and evolving consumer aspirations.

Airbus projects Asia-Pacific will need 19,560 new aircraft in 20 years, nearly half of global demand, with India and China driving growth. Passenger traffic is set to rise 4.4% annually, spurring massive infrastructure upgrades like Navi Mumbai and Noida airports. IndiGo and Akasa Air will launch operations from Navi Mumbai, marking India’s expanding aviation future.

Asia-Pacific’s Aviation Boom Takes Flight with India and China at the Helm

Airbus projects Asia-Pacific will need 19,560 new aircraft in 20 years, nearly half of global demand, with India and China driving growth.

Goldman Sachs predicts emerging markets, led by India and China, will outperform developed economies over the next decade, delivering 10.9% annual returns. Strong earnings growth, favorable demographics, and policy reforms drive this optimism. Despite high valuations, global equities are expected to deliver steady long-term gains, with diversification into emerging markets offering the best opportunities.

Emerging Markets Set to Shine: Goldman Sachs Predicts Decade of Strong Equity Gains

Goldman Sachs predicts emerging markets, led by India and China, will outperform developed economies over the next decade, delivering 10.9% annual returns.

India is fast-tracking Press Note 3 (PN3) approvals for Indo-Chinese joint ventures as relations with Beijing improve. Dixon Technologies, Micromax, and Uno Minda await clearances for projects in electronics and automotive manufacturing. Faster approvals under PN3 and new incentives like ECMS and PLI are attracting significant investments, boosting India’s localization and manufacturing value chain.

India Fast-Tracks Approvals for Indo-Chinese JVs as Business Ties Warm Up

India is fast-tracking Press Note 3 (PN3) approvals for Indo-Chinese joint ventures as relations with Beijing improve.

Japan’s car giants—Toyota, Suzuki, and Honda—are investing billions in India, shifting focus from an increasingly competitive China. Toyota and Suzuki plan major capacity expansions and new models, while Honda eyes India as an EV export hub. Favorable policies, cost advantages, and India’s growth make it an attractive alternative, solidifying Japan’s strategic automotive pivot to India.

Japan’s Auto Giants Drive India Investments Amid Shift from China

Japan’s car giants—Toyota, Suzuki, and Honda—are investing billions in India, shifting focus from an increasingly competitive China.

India’s GST cut on nearly 400 products fueled an 8.5% rise in festive spending from September 22 to October 21, totaling ₹6 trillion. Strong sales of cars, jewelry, and appliances signaled revived consumer demand. Automakers led gains, with Hyundai, Tata, and Mahindra reporting record sales. While economists caution about pent-up demand and economic headwinds, businesses remain optimistic that India’s consumption momentum will stay strong into early 2025.

India’s Tax Cuts Ignite Festive Shopping Frenzy, Powering Economic Optimism

India’s GST cut on nearly 400 products fueled an 8.5% rise in festive spending from September 22 to October 21, totaling ₹6 trillion.

India is poised to become a $10 trillion economy by 2040, emerging as the world’s third largest, according to DBS Bank’s Radhika Rao. The transformation hinges on four pillars—the 4Ds: Development, Diversification, Digitalisation, and Decarbonisation. These focus on infrastructure, trade expansion, technological innovation, and green growth. Together, they outline a roadmap for India’s sustainable rise toward Viksit Bharat (Developed India) by 2047.

India’s Economic Crossroads: The Four Pillars Driving a $10 Trillion Future

India is poised to become a $10 trillion economy by 2040, emerging as the world’s third largest, according to DBS Bank’s Radhika Rao.

India is set to remain a global growth leader with a projected 6.6% GDP rise in 2025–26, driven by strong domestic demand, manufacturing recovery, and service-sector expansion, according to the IMF. It is expected to outpace China’s 4.8% growth.

Tariffs cannot slow India: IMF growth forecast to 6.6%

India is set to remain a global growth leader with a projected 6.6% GDP rise in 2025–26, driven by strong domestic demand, manufacturing recovery, and service-sector expansion, according to the IMF.

This Diwali, credit card spending surged, with 42% of users spending over ₹50,000, driven by cashback, rewards, and offers. A Paisabazaar survey of 2,300 respondents revealed 91% planned purchases around card benefits, with home appliances (25%), gadgets (23%), and apparel (22%) topping categories.

Festive Spending Soars: 42% spent over ₹50,000 on credit cards

This Diwali, credit card spending surged, with 42% of users spending over ₹50,000, driven by cashback, rewards, and offers.

The RBI's Payments Systems Report highlights UPI as India's leading retail payment system, accounting for 84.8% of transactions. UPI volumes surged from 1,079 crore in 2019 to 17,221 crore in 2024, with transaction values rising from $221.7 billion to $2.97 trillion.

UPI drives 85% of India’s digital payments, transaction value jumps to $ 3 Trillion: RBI

The RBI's Payments Systems Report highlights UPI as India's leading retail payment system, accounting for 84.8% of transactions.

China's billionaire population has soared to a record 1,434 individuals, reflecting a 31% increase, fueled by stock market rallies and growth in sectors like technology, EVs, and biotech.

China added almost one billionaire a day in 2024: Hurun list

China's billionaire population has soared to a record 1,434 individuals, reflecting a 31% increase, fueled by stock market rallies and growth in sectors like technology, EVs, and biotech.

INDIA CHINA Connect