INDIA CHINA Connect

Modi and Netanyahu’s trust underpins a resilient, forward-looking strategic partnership that moves beyond protocol into bold coordination. Defense cooperation is evolving from simple procurement to co-production and joint innovation, while collaboration expands into AI, quantum, cyber, and next-generation systems. Anchored in five pillars—defense industry, advanced technology, supply chains, regional diplomacy through i2U2, and leadership trust—it aligns Israel with India’s r

Modi became the first Indian PM to address Israel’s Knesset, receiving its highest honor and elevating ties to a “Special Strategic Partnership.” India’s UPI expands to Israel, with a Free Trade Agreement and $8–10 billion defense deals underway. Cooperation includes missile defense, drones, 50,000 Indian workers, and 35 agricultural centers training over one million farmers.

Under the PLI scheme (2021–2026), Apple and its partners created over 250,000 direct jobs, with 70% being young women entering the workforce. Tata and Foxconn exceeded targets with 140,000 jobs. Wages rose nearly 80% to Rs 18,000–20,000 monthly. The Apple ecosystem added 750,000 indirect jobs and achieved $23 billion in iPhone exports in 2025.

Since liberalisation, India has advanced but trails China in technology, income, and industry. A pragmatic “frenemy” stance with China can yield economic benefits. Stronger Indian enterprises can influence geopolitics. Replicating successful states like Tamil Nadu and Kerala, and focusing on six accelerators—human capital, governance, exports, innovation, MSMEs, and agricultural reform—can drive progress.

India’s e-commerce market is projected to rise from $140 billion to nearly $300 billion by 2030, with total consumption hitting $3.7 trillion. Growth will be driven by smaller cities, rural buyers, women, and middle-income groups. MSMEs, quick commerce, and social platforms fuel expansion, while increasing consumer complaints underscore the need for stronger trust and protection measures.

China’s mature rail market drives firms to expand across Eurasia, targeting Southeast and Central Asia. Flagship projects in Indonesia and Europe highlight export strength, while Thailand and Malaysia pursue upgrades with Chinese support. Success requires financial stability, political backing, and strong ridership. Rail exports enhance China’s global influence and diplomatic reach, despite high costs.

Eighty-eight nations endorsed the New Delhi Declaration, advancing “AI for All” through a non-binding roadmap for inclusive, sustainable AI. It emphasizes equitable access, workforce reskilling, and energy-efficient systems, launching initiatives like AI Commons and a workforce playbook. By promoting open-source ecosystems and affordable infrastructure, the declaration positions India as a central bridge in global AI governance.

Vocational undergraduate colleges in China have grown from 15 in 2019 to over 100, shifting from fallback to strategic choice. Graduates enjoy higher employment rates (87.1%) than the national average. Programs target emerging industries like AI and smart manufacturing, though challenges remain in employer recognition and balancing specialized training with foundational academic skills.

Anthropic’s new Bengaluru office marks its long-term commitment to India, led by Irina Ghose. Collaborations with major firms like Infosys highlight India’s growing AI influence across the Global South. At the India AI Impact Summit, global leaders discussed AI’s potential for healthcare and economic growth, alongside challenges such as misuse and job displacement.