INDIA CHINA Connect

Larry Fink calls the next 20–25 years the “Era of India,” naming it his top long-term investment destination. He expects 8–10% growth for the next decade or more. Strong domestic savings, supported by foreign capital, underpin this outlook. Broader market participation and sustained AI investment are seen as critical for India’s future global leadership and economic transformation over the long term.

Research confirms millet-based agriculture as the dietary foundation in Lüliang during the Eastern Zhou Dynasty. Isotope analysis reveals notable population movement and cultural interaction in this frontier region. Despite diverse burial customs, communities shared common food practices. The findings highlight Lüliang’s integrative role in early Chinese civilization formation and demonstrate how scientific techniques can precisely trace ancient diet and migration patterns.

Indian student interest shifted sharply in 2025, with Europe seeing strong growth as the US and Canada declined. US-bound Indian students dropped nearly 30% due to tighter visas and rising costs. European destinations grew 62%, led by Germany, Italy, and France. Lower tuition fees, better return on investment, and student-friendly immigration and work policies are driving Europe’s increasing appeal among Indian students.

India’s Index of Industrial Production jumped 7.8% in December 2025, its fastest pace in over two years, exceeding forecasts. Manufacturing, mining, and electricity drove the rebound, with 16 of 23 industries expanding. Infrastructure goods and consumer durables recorded double-digit growth, signaling robust investment and consumption. Overall industrial output rose 3.9% during April–December, pointing to sustained momentum heading into 2026.

India is expected to be the fastest-growing major economy, accounting for roughly 20% of global growth. The World Economic Forum sees a possible India–US trade deal as an added catalyst. Swift reforms have strengthened confidence in India’s medium-term outlook. Davos debates remain shaped by geopolitical uncertainty, while AI is viewed as a powerful growth driver that also raises significant security and governance risks worldwide.

Indian households are steadily reallocating savings from traditional deposits to equities and market-linked instruments. The equity and mutual fund share of household savings climbed from about 2% in FY12 to over 15% in FY25. Surging SIP inflows show disciplined long-term investing. Declining reliance on term deposits reflects diversification, not replacement, while rising direct and indirect participation has substantially increased household equity wealth.

India is considering linking UPI with Alipay+ to enable seamless cross‑border digital payments. This could allow Indian travelers to use UPI at millions of international merchants. While UPI processes around 18 billion transactions monthly and Alipay+ offers wide global reach, discussions signal cautious warming of India–China ties and remain subject to security, regulatory, and geopolitical scrutiny.

China is executing the world’s largest energy expansion to power future industries. In 2024, it added 543 GW of capacity—more than India’s entire system and faster than the US. The strategy emphasizes energy security, reduced imports, and low power costs, spanning solar, wind, coal, nuclear, and hydropower, with grid efficiency and market reforms next.

India’s Bharatmala Pariyojana has completed over 21,700 km of highways by December 2025. The programme targets 34,800 km to improve connectivity and cut logistics costs. Projects spanning 26,425 km have been awarded, with ₹4.93 lakh crore spent. The initiative prioritizes freight corridors, urban decongestion, regional inclusion, and completion of all projects by FY 2027–28 across states nationwide under the plan.

India's Union Budget 2026 proposes a tax holiday until 2047 for foreign cloud companies operating India-based data centres. The move aims to attract global investment and strengthen digital infrastructure. While global income of foreign providers is exempt, Indian resellers remain taxable. The policy is expected to boost data centre investment, job creation, and position India as a global cloud and AI hub.