INDIA CHINA Connect

India’s Finance Minister, Nirmala Sitharaman, reinforced the government's commitment to economic growth as a key policy goal at the launch of “A World in Flux: India’s Economic Priorities.” She credited public capital spending for sustaining growth amid global uncertainty and outlined three key priorities: fostering job creation, amplifying the Global South’s voice, and balancing fiscal prudence with growth. Sitharaman also emphasized strengthening FDI policies and reforming

India is considering a policy shift to allow Chinese firms to invest up to 24% in Indian companies without security clearances, potentially easing investment hurdles. Current rules, introduced in 2020 amid national security concerns, mandate approvals for such investments. The proposal, under review by key ministries, aligns with the Economic Survey 2024's call to relax restrictions on Chinese FDI, aiming to enhance global supply chain participation and exports. This move coi

India’s exports surged in Q1 FY26, driven by electronics (47% growth to USD 12.41 billion), apparel (USD 4.19 billion), and marine products (USD 1.95 billion). The United States dominated as the top market across sectors, highlighting India’s growing reliance on mature economies. Diversification, skilled manufacturing, and enhanced logistics bolstered competitiveness. Automobile exports also hit record highs, led by Maruti Suzuki. This growth underscores India’s expanding glo

Non-Resident Indians (NRIs) must file income tax returns (ITRs) for compliance, refunds, and loss carryovers if earning taxable Indian income, like NRO account interest, rent, or capital gains. Disclosures include Indian income, assets, and TDS details, with a pre-validated Indian bank account required for refunds. NRIs can claim deductions (e.g., under Sections 80C, 80D) and avoid double taxation through DTAA provisions by filing Form 67. Most NRIs use Form ITR-2. Accurate f

Finance Minister Nirmala Sitharaman, speaking at the IICA North East Conclave in Shillong, emphasized the need for globalization tailored to local needs and capitalism driven by ethical principles. Highlighting gaps in logistics, she called for improved infrastructure to boost the economic potential of India’s north-east. Sitharaman praised the region’s entrepreneurial spirit, noting 2,300 startups, and stressed the importance of institutions like IIM Shillong and IICA in fos

China's GDP is set to exceed 140 trillion yuan ($19.5 trillion) in 2025, reflecting its economic resilience amid trade tensions and deflation. The 14th five-year plan (2021–2025) prioritized growth, innovation, sustainability, and improved livelihoods, achieving an average 5.4% annual growth despite COVID-19. Strengthened manufacturing and self-reliance in technology showcased adaptability. As the 15th five-year plan (2026–2030) takes shape, policymakers aim to boost domestic

Affluent Indian investors are shifting from cash-heavy portfolios to gold, alternative assets, and global markets, prioritizing diversification and long-term growth, according to HSBC’s 2025 Affluent Investor Snapshot. Cash allocations dropped to 15%, while gold doubled to the same level, driven by inflation concerns. Younger investors globally are fueling interest in alternatives like private markets and REITs. Nearly 40% of Indian investors plan international investments, f

India has expanded the use of total return swaps (TRS), allowing major banks like HSBC and Standard Chartered to link these derivatives to corporate bonds. Previously limited to government securities, this move boosts foreign investors' access to India’s $639 billion credit market. With record corporate bond issuances and private credit growth, TRS offers investors exposure without needing local accounts. The regulatory body overseeing GIFT City is also exploring TRS for doll

Apple’s challenges in India, marked by Foxconn recalling engineers, highlight hurdles in India's manufacturing growth under the ‘Make in India’ initiative. Launched in 2014, it aims to boost industrial output and reduce imports. Comparisons with China’s ‘Made in China 2025’ reveal lessons for India, as China leads in green tech, AI, and high-speed rail but faces criticism for protectionism. While India excels in services, it must address supply chain gaps and innovate to riva

India ranks fourth globally in income equality, with a Gini Index of 25.5, surpassing major economies like China and the US. This achievement reflects dedicated policies focused on poverty reduction, financial inclusion, and welfare programs. Between 2011 and 2023, 171 million Indians escaped extreme poverty, with the poverty rate dropping from 16.2% to 2.3%. Key initiatives like Jan Dhan Yojana, Aadhaar, Ayushman Bharat, and food security schemes have driven this progress, p

India is undergoing an economic transformation, with super-rich households (earning ₹2 crore annually) set to grow from 1.8 million in...

India retained its position as the top global remittance recipient in FY25, with its diaspora sending a record $135.46 billion, a 14% rise from the previous year. Remittances now account for over 10% of India’s $1 trillion gross current account inflows, surpassing foreign direct investment as a key funding source. Skilled migration to developed nations like the US and UK has driven growth, while Gulf contributions have declined. These inflows play a vital role in reducing Ind

China has introduced new tax incentives to attract foreign investors and boost its economy amid global trade challenges. Foreign firms reinvesting profits in China can deduct up to 10% of the reinvested amount from taxes, with retroactive applications allowed from 2025. These measures come as geopolitical tensions and competition with the US intensify. Premier Li Qiang reaffirmed China’s commitment to global collaboration, while the country also expands outbound investment op

India's external debt rose to $736.3 billion (19.1% of GDP) by March 2025 from $668.8 billion (18.5% of GDP) a year earlier. The increase was partly driven by a $5.3 billion valuation effect due to the US dollar's appreciation. Long-term debt grew to $601.9 billion, while short-term debt's share declined to 18.3%. US dollar-denominated debt dominated at 54.2%, followed by the rupee at 31.1%. Loans accounted for 34% of debt, highlighting the need for prudent management of liab

China has unveiled a three-year plan to boost gold production by over 5% and reserves by 5-10%, addressing rising demand and global...

India aims to achieve 8% economic growth, surpassing its current 6.5% pace. This ambitious target requires synchronized monetary and fiscal policies, higher investment rates, and robust job creation.

India could unlock $2 trillion in new revenue by 2030, doubling its global GDP share to 8–10% by 2040, according to McKinsey's report on 18 high-growth sectors.

Walmart aims to boost annual sourcing from India to $10 billion by 2027, emphasizing the country’s growing role in its global supply chain.

China is ramping up efforts to boost domestic consumption amidst trade uncertainties and employment challenges. The People’s Bank of...

India is nearing a major oil discovery in the Andaman Sea, potentially rivaling Guyana’s 11.6 billion barrel find.