INDIA CHINA Connect

Slow-moving demographic forces may transform the global system more profoundly than headline crises. Over the next 10–15 years, 1.2 billion young people in developing countries will reach working age, but only 400 million jobs are expected, creating a vast shortfall. This gap poses development, economic, and security risks, yet early investment can convert it into opportunity.

May the new year bring you happiness, good health, prosperity, and peace. May your home be filled with laughter, your heart with contentment, and your path with success. Wishing you and your loved ones a joyful and prosperous Chinese New Year! Gong Xi Fa Cai!

India Stack—Aadhaar, UPI, and e-KYC—has become a global model for digital financial inclusion, with nearly 100 countries exploring replication. India is central to Accion’s strategy, drawing strong fintech investment across stages. Effective regulation, especially RBI leadership, underpins success. Reaching the next billion—rural communities, women, and farmers—will demand deeper innovation and stronger institutions.

An NBER study finds that even a $100,000 H-1B visa fee would not substantially curb employer demand. H-1B workers earn about 16% less than comparable U.S.-born employees, creating payroll savings. Wage gaps are smaller at major tech firms but persist among smaller employers, where most H-1B hiring occurs, limiting the fee’s deterrent effect.

India has electrified 99.4% of its Broad Gauge rail network, nearing full transition. Since 2014, 46,900 route km have been electrified, with ₹29,826 crore invested between 2020 and 2025. Diesel use fell 62%—1.78 billion litres—in 2024–25 versus 2016–17, reducing crude imports and costs. Bio-toilets and stronger waste management systems have been deployed nationwide.

India–China trade hit a record $155 billion in 2025, growing over 12% amid expanding economic engagement. China supported India’s BRICS presidency, while the Modi–Xi meeting in Tianjin revived diplomatic and people-to-people ties. India’s exports to China rose nearly 10%. Relations improved significantly since October 2024.

Chinese Ambassador Xu Feihong signaled renewed momentum in India–China ties during Spring Festival events, emphasizing deep civilizational links and expanding academic exchanges. He noted shared values of harmony, self-reliance, and support for the Global South. Bilateral trade reached a record $155.6 billion in 2025, while resumed travel, pilgrimages, and flights strengthened people-to-people connections.

Brand strength increasingly shapes global competition for talent, funding, partnerships, and patient trust. Johns Hopkins tops the 2026 rankings, followed by Oxford and Stanford. University Health Network leads in Care, while Charité excels in Research. North America dominates overall, but Asia and the Gulf are rising. India must boost care quality, research output, and global visibility to gain recognition.

India’s space sector aims to secure 8–10% of the global space economy by 2035, fueled by supportive policies, expanding private participation, and rising global investor interest. The government has launched a ₹1,000 crore venture fund, while major international investors track opportunities. Over 390 startups registered with IN-SPACe reflect a fast-maturing ecosystem.

India’s global AI summit in Delhi reframed AI discussions toward practical deployment rather than fear-driven regulation. As the first major AI summit in the Global South, it emphasized access, scale, and public value. Anchored in People, Planet, and Progress, it linked AI to inclusion, sustainability, and growth, highlighting India’s ambitions, startups, and governance leadership.

India’s exports to China climbed 37% to $14.2 billion during April–December, with December 2025 shipments jumping 67%. Imports rose 13.5% to nearly $96 billion, led by capital goods, intermediates, and raw materials. Some sectors, including fertilisers and chemicals, saw declines, while rising electronics imports signaled expanding digital and manufacturing capacity.