INDIA CHINA Connect

March 2026 e-way bills surged to a record 140.6 million, up 12.9% year-on-year, signaling strong commercial activity and improved GST compliance. Driven by year-end dispatches, inventory adjustments, and resilient demand, the rise may also reflect precautionary stockpiling amid global uncertainties. Increased goods movement could raise logistics costs, while digital GST reforms accelerate formalisation and tax transparency.

Indian firms show strong global ambitions: 98% plan cross-border expansion within five years, with 86% expecting higher overseas capital deployment. 91% have adapted strategies to structural volatility, while 94% display greater risk appetite in high-growth markets like UAE, UK, and Saudi Arabia. AI and digital finance drive expansion, with 71% viewing AI as central to global growth.

India’s exports hit a record USD 860 billion in FY 2025–26, rising from USD 825 billion despite global uncertainties. Nine trade agreements expanded market access, while reforms boosted investor confidence. Services, engineering, and electronics drove growth momentum. With resilience and integration strengthening, exports are projected to surpass USD 1 trillion in FY 2026–27, marking a milestone in India’s global trade trajectory.

Patent filings in India surged 30.2% to 143,729 in 2025–26, making it the world’s sixth-largest filer. Domestic innovators drove 69% of applications, led by Tamil Nadu, Karnataka, and Maharashtra. Growth has been steady since 2016–17, aided by reforms like fee cuts, faster reviews, and startup support. Strict examination ensures only high-quality patents are granted.

India’s apparel exports to the US fell 28.7% in February, trailing Bangladesh and Vietnam, which grew 5%. China saw the sharpest decline at 45.2%. Despite tariff rollback, India’s market share shrank, with exporters struggling to regain buyers. Weak US demand and tariff effects cut profits, pushing PAT down over 50%. Recovery may start May–June.

China became India’s top trading partner in 2025–26 with trade worth $151.1 billion, though the deficit widened to a record $112.16 billion. Exports to China rose 36.66%, but imports stayed higher. The US slipped to second, with India’s surplus narrowing to $34.4 billion. Export and import trends showed mixed performance across major global partners.

A breakthrough wafer-scale 2D semiconductor growth method achieves speeds 1,000 times faster than prior techniques, solving shortages of high-performance p-type materials for advanced chips. It enables scalable monolayer integration into sub-5nm CMOS circuits, boosting transistor performance, thermal stability, and durability. Applications expand across AI chips, optoelectronics, sensors, and bioelectronics, marking a leap in semiconductor innovation.

India is negotiating trade access with 20+ countries, adding to nine FTAs covering 38 developed nations. Targeting high-income markets to expand exports, preferential access now spans nearly two-thirds of global trade. MSME reforms aid global expansion, while a ₹2 lakh crore national grid boost, 5G rollout, and digital growth underpin India’s 2047 developed nation ambition.

India’s OTT market hit 1.45 billion MAUs, rising 20% in three years, driven by cheap data and smartphone growth. Users are projected to reach 885 million by FY28. YouTube dominates with 772 million, followed by JioHotstar at 390 million. Netflix leads Prime Video, while ZEE5 emphasizes premium subscriptions and profitability, signaling diverse strategies in streaming expansion.

India’s defense exports crossed $4B in FY 2025–26, rising over 60% year-on-year. Public and private sectors jointly drive growth, with PSUs contributing ~55%. Equipment reaches 100+ countries, including the US, France, Israel, and Germany. Armenia and the Philippines lead in indigenous purchases. Aligned with “Make in India,” exports expand India’s global footprint while reducing import dependence.