📌 Three big stories today — India cautiously warming ties with China amid US tariffs, pharma companies pushing into Mexico to diversify risks, and global supply chains testing India’s “Make in India” dream.
#1 🇮🇳🤝🇨🇳 India-China Relations: Reset or Risk?
After years of frosty ties post-Galwan, New Delhi is considering easing restrictions on Chinese investments under Press Note 3. Talks of resuming direct flights and softening visa rules point to a slow thaw. For China, India’s market is crucial amid US export curbs, while India still needs Chinese capital and raw materials. But trust deficit and security concerns mean only selective partnerships are realistic.
#2 💊 Pharma Bets on Mexico
Indian pharma exports stand at $26.5B, but Latin America’s $20B market is still underpenetrated. Companies are lobbying Mexico’s regulator COFEPRIS for a simpler approval process. With rising drug demand and Mexico’s strategic location near the US, this could open a new billion-dollar corridor for Indian drugmakers — helping diversify away from tariff risks in the US.
#3 🏭 “Make in India” Under Pressure
US tariffs are hurting India’s labour-intensive exports like toys, apparel, and footwear. Some manufacturers are even rerouting half-finished goods via Vietnam to dodge tariffs. With Vietnam and Bangladesh racing ahead thanks to FTAs and leaner policies, India faces an existential test. Can labour reforms, aggressive trade deals, and supply chain modernization keep India competitive?
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