INDIA CHINA Connect

Donald Trump referenced India's voter ID system, highlighting its requirement for photo ID for 646 million voters, to advocate for stricter U.S. election rules. The SAVE America Act seeks citizenship proof for federal voter registration and aims to limit mail-in ballots. Democrats and Republicans are divided on this legislation.

India's merchandise exports increased by 17.04% from April to July 2026, while imports climbed 19.27%. China remains crucial for electronics components in Indian smartphone manufacturing, with smartphone exports hitting USD 9.855 billion in Q1. Pharmaceutical exports depend significantly on Chinese APIs, prompting India to reconsider investment regulations concerning China.

LandSpace achieved China's first land-based recovery of an orbital-class booster, the Zhuque-3 rocket, after launching the Honghu-3 internet satellite from Jiuquan. This milestone positions Zhuque-3 as a potential rival to SpaceX's Falcon 9. The successful recovery and reuse of this booster could significantly advance China's satellite internet expansion efforts.

China has instructed state-linked bodies to replace Windows 10 with domestic Linux-based operating systems, aiming to lessen dependence on US technology. Previously, a customized government version of Windows 10 was used. This transition mirrors similar public-sector shifts to Linux in parts of Europe, reflecting a broader trend toward increased technological sovereignty.

Rising memory costs are pushing budget smartphones above previous price levels, leading to the disappearance of sub-USD 150 phones once stocks deplete. Chinese brands face pressure in India's entry-level segment, while Samsung and Apple benefit from the shift toward higher-priced devices. Despite lower shipment volumes, India's smartphone value sales have increased.

India's trade deficit with China reached USD 112 billion in 2025-26, with China exporting USD 131 billion in goods to India and importing only USD 19 billion. Chinese investment in India is limited to USD 2.5 billion over two decades. Targeted investment could foster mutual dependence, but safeguards are essential in critical sectors.

Sergio Gor highlighted significant potential for growth in India-US economic relations. Bilateral trade surged from USD 20 billion to over USD 240 billion within two decades, targeting USD 500 billion by 2030. Gor emphasized the need for predictable regulations and better IP protection, with AI, semiconductors, defense, and energy as primary focus areas.

Engineering services exports surged to USD 13.77 billion in 2024-25, marking nearly an eightfold increase from 2014-15, with a 22.8% CAGR. Imports remained steady at USD 1.73 billion. NITI Aayog highlighted the absence of a dedicated engineering regulatory law, suggesting a central framework could enhance safety, ethics, and accountability in the sector.

The Prime Minister's Viksit Bharat vision prioritizes youth, using the Sapta Dhara framework's seven focus areas to drive national progress. Universities should shift from mere certification to solving real-world issues. The NEP 2020 provides tools for experiential and flexible learning, empowering campuses to prepare students for achieving India’s 2047 goals.