INDIA CHINA Connect

India assembles nearly all phones sold locally, but only adds less than 20% in value. The ECMS initiative targets boosting local mobile component production to nearly 50% by FY32. The scheme's budget has risen to around USD 4.21 billion, with approved projects involving approximately USD 7.32 billion in investments, focusing on PCBs, displays, cameras, batteries, and enclosures.

Moody's upgraded India's FY27 real GDP growth forecast to 7% from 6%, citing resilience amid Middle East tensions and high oil prices. GDP growth was 7.8% in April-June, surpassing expectations, driven by robust consumption, investment, manufacturing, and services. However, risks persist from oil prices, inflation, tariffs, rupee pressure, and fiscal challenges.

Indian student departures for education abroad dropped from 908,364 in 2023 to 626,606 in 2025 due to rising costs, visa limits, and political uncertainty. Indian universities, like IITs and IISc, are gaining global recognition. Students prefer foreign university programs offered domestically, adopting a model of studying in India first and seeking overseas exposure later.

Hong Kong retained its position as Asia's leading financial hub for the fourth consecutive GFCI edition and ranked third globally, following New York and London. It excelled in financial sector development, fintech, investment management, and insurance, with assets under management hitting USD 2.95 trillion by 2025. Shanghai, Shenzhen, Tokyo, and Seoul enhanced Asia-Pacific's influence in the top 10.

India's private space sector is rapidly expanding in communication, surveillance, satellites, and launch services, aiming to increase its share of the global space economy from 2–2.5% to 8–10%. The space economy is projected to grow from USD 8.5 billion to USD 44 billion. Key milestones by firms like Skyroot highlight progress, though a dedicated Space Act is needed for regulation clarity.

India-US space relations are evolving from cooperation to co-creation, highlighted by joint efforts on instruments, startups, and data. Ambassador Sergio Gor cited NISAR's role in disaster response and noted NASA's invitation to ISRO for the Moon base program. He encouraged Indian space startups to explore American markets and investors, marking a significant partnership expansion in space exploration.

China inaugurated the 134.2 km Pinglu Canal, connecting Nanning to the Beibu Gulf, eliminating a 560 km detour via Guangzhou for inland shipments. With a cost of USD 10.8 billion, it accommodates 5,000-tonne vessels, potentially saving over USD 52.6 million annually in transport costs. China-Asean trade rose to USD 862.75 billion in eight months, a 25.6% increase.

India and China have resumed trade discussions post-BRICS Summit, focusing on India's trade deficit and market access. Economic ties had weakened since 2020. Meanwhile, India expects the India-New Zealand FTA to start in October and is advancing trade negotiations with Canada and the U.S.

India's exports to core BRICS countries increased by 34% to $19.9 billion from April to August 2026-27. Exports to China rose 39%, and to South Africa by 58%. Core BRICS markets now form 9.2% of India's exports. Exports to Japan, Italy, and South Korea also grew, driven by minerals, fuels, electronics, aluminium, steel, and chemicals.

Adobe has appointed Anil Chakravarthy as president and CEO from December 1, with Shantanu Narayen transitioning to executive chair after 18 years. Chakravarthy will join Adobe’s board during this leadership change. The company's shares have declined due to AI disruption concerns. Additionally, senior executive David Wadhwani has announced his departure from Adobe.

After nearly 20 years, India has finished its 2,843-km dedicated freight network. Prime Minister Narendra Modi inaugurated the final 326-km stretch of the Western Dedicated Freight Corridor, costing approximately USD 2.18 billion. This fully electrified network facilitates double-stack container movement, reduces congestion, accelerates cargo delivery, and frees tracks for passenger trains.

India's oil purchases from Russia aren't crucial to resolving the Ukraine conflict, said Jaishankar, emphasizing India's duty to meet its energy needs. Advocating for dialogue and negotiation, India aims for peace and is open to assisting in ending the war. Ukrainian President Zelensky expressed gratitude for India's support in peace efforts.

Airbus plans to deliver over 1,200 aircraft to India in the next decade, averaging more than two deliveries per week. Currently, over 500 of India's nearly 800 active aircraft are Airbus models. To enhance support, Airbus is expanding local maintenance, repair, and overhaul (MRO) capabilities, including a new radome repair facility in Nagpur, boosting aircraft availability.