INDIA CHINA Connect

India plans to raise the CCEA approval limit for FDI proposals to $1.58 billion from $526.3 million, unchanged since 2015. This move aims to simplify approvals and enhance business ease. Additionally, downstream investment rules may be eased. Since 2000, FDI inflows have exceeded $1.16 trillion, highlighting the country's attractiveness to foreign investors.

India should embrace strategic flexibility amid global disruptions by enhancing domestic capabilities and reducing reliance on external systems. Engage globally with pragmatic approaches, balancing trade openness with national security. Maintain fiscal discipline, avoiding excessive giveaways. Proactively address demographic shifts such as ageing, migration, and urbanization to ensure sustainable development.

AI infrastructure significantly boosts US growth and strengthens the dollar, with AI and data-centre spending potentially reaching 2% of GDP by 2026. Big Tech's capital expenditure is projected to surpass $700 billion in 2023. While India draws global data-centre investment, accelerated execution is crucial, focusing on power, land, connectivity, skills, and cybersecurity.

Economist Utsa Patnaik estimated Britain extracted around $45 trillion from India between 1765 and 1938. This economic drain occurred through taxes, trade mechanisms, export surpluses, and colonial spending. Instead of fostering India's industrialization, export earnings were redirected to Britain, financing Western capitalism and global expansion.

China had 126,500 households with at least $14.8 million in assets in early 2025. Beijing and Shanghai hosted 34,700 of these. Wealth was concentrated in the Yangtze River Delta, Guangdong, and Beijing-Tianjin-Hebei. Hong Kong remained a key offshore investment hub. Future wealth creation could be influenced by IPO activity.

Indian missions in Beijing and Shanghai hosted Madhubani art workshops as part of the 80th Independence Day celebrations. Nearly 200 diaspora members and Friends of India attended the Shanghai event. The workshops showcased India's folk traditions and cultural identity, while young Chinese students were recognized for promoting Indian art through technology.

A Chinese-led team has reported compelling evidence for glueballs, particles made solely of gluons. Utilizing 15 years of data from Beijing’s electron-positron collider, scientists have identified a promising candidate, X(2370). This discovery is hailed as a significant experimental breakthrough in the understanding of strong force carriers.

Despite improved official ties, Chinese researchers note that Beijing has not gained the confidence of the Indian public. They argue that China's messaging is weak and lacks long-term planning. India's fragmented media and nationalist discourse hinder effective outreach. Scholars suggest fostering people-to-people exchanges and engaging local opinion leaders to overcome mutual distrust in diplomatic relations.

India has declined to back a BRICS currency proposal, as stated by Piyush Goyal following a ministers’ meeting in Jaipur. The BRICS bloc, comprising 11 emerging and developing economies, discussed trade, investment, and MSME financing. While Russia and China are interested in alternatives to the dollar, India remains cautious about adopting a common currency.