India’s exports to China saw a rare uptick in 2025, yet the bilateral trade deficit surged to a record $116.12 billion. Despite this imbalance, overall trade hit an all-time high, showcasing resilience amidst global uncertainties. Newer Indian products are finding a market in China, signaling a potential shift.
Indian auto component makers anticipate US tariffs to significantly impact exports from the second half of FY26, with new contracts facing uncertainty. Despite global challenges, the sector saw steady growth in H1 FY26, driven by robust domestic demand. However, rising imports and a widening trade deficit pose concerns.
Indian markets mirrored global caution as US stocks dipped, driven by mixed bank earnings and rising oil and gold prices. Investors eyed potential disruptions from Iran, while Treasury yields eased. Despite some positive economic signals, elevated equity valuations demand strong corporate growth to sustain current levels.
Industry body CII urges the government to implement clear green hydrogen mandates and incentives to boost demand and support India’s clean industrial transition. Key sectors like refining and fertilisers can anchor large-scale adoption if policy addresses the cost gap.
Deloitte India suggests the upcoming Union Budget should boost domestic manufacturing and exports by rationalizing import duties and increasing budgetary allocations. The consulting firm advocates for a balanced customs duty structure, encouraging domestic value addition and exports. Reforms to SEZ regimes and extended manufacturing programs are also proposed to enhance competitiveness and support Indian exporters
US President Trump visited a Ford assembly line in Michigan to promote his manufacturing agenda amidst voter concerns about jobs and the cost of living. He highlighted economic accomplishments and tariffs, aiming to counter anxieties despite recent election results suggesting voter skepticism. The visit also coincided with shifts in electric vehicle policies.
