Morning Brief: China Among Top Destinations Of India's Electronics Exports; India To Allow China JVs, But With One Condition; Monsoon Session Begins Today; And More

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China Among Top Destinations Of India's Electronics Exports

India’s electronics exports surged 47 per cent year-on-year in the April–June quarter of FY26 to $12.41 billion, with the US, UAE, and China emerging as the top three destinations, according to a report in The Economic Times. The Netherlands and Germany also ranked among the top five markets, highlighting India’s growing footprint in global electronics trade.

The US remained the dominant destination for both electronics and ready-made garment (RMG) exports, accounting for over 60.17 per cent and 34.11 per cent of shipments in each category, respectively. RMG exports rose to $4.19 billion in Q1, up from $3.85 billion a year ago, while marine product exports grew 19.45 per cent to $1.95 billion. The RMG sector posted 10.03 per cent growth in FY25, reaching $15.99 billion.

India To Allow Electronics JVs With Chinese Firms, But With Conditions

The government is likely to support Chinese investments in the electronics sector if they come through joint ventures with Indian firms and include clear provisions for technology transfer, The Economic Times has reported. The Ministry of Electronics and IT (MeitY) believes such collaborations are necessary to strengthen local manufacturing and make India’s Rs 22,919-crore component production scheme viable.

According to the report, proposals involving only assembly lines will not be approved, and stressed the importance of Indian firms gaining access to Chinese know-how to raise local value addition, now above 20 per cent. Industry executives noted that MeitY has backed several such proposals under Press Note 3, while warning that China’s informal trade curbs and rare earth export restrictions could derail India’s $32-billion smartphone export target for FY25.

Monsoon Session Begins Today

The monsoon session of Parliament begins today (21 July), with the government indicating it is open to discussing Operation Sindoor and US President Donald Trump’s claim of mediating a ceasefire during the recent India-Pakistan conflict. At an all-party meeting on Sunday, the Opposition unanimously demanded a response from the Prime Minister and raised issues such as the Pahalgam terrorist attack and the Special Intensive Revision (SIR) of electoral rolls in Bihar.

Union minister Kiren Rijiju said the government was willing to discuss key matters raised by the Opposition and would respond in accordance with parliamentary norms. A senior minister is expected to speak on Operation Sindoor in both Houses. Congress, AAP, CPI(M) and others have also sought accountability on electoral and security concerns. The INDIA bloc plans to raise all three issues during the session.

Other Developments

India To Give Maldives New LoC Before PM’s Trip

India is working on a new line of credit for the Maldives that could be finalised during Prime Minister Narendra Modi’s July 25–26 visit, his first since President Mohamed Muizzu came to power in 2023 after a sharp anti-India campaign. The visit, timed with Maldives National Day, is expected to see the inauguration of India-funded projects, and is viewed as a diplomatic reset after Muizzu pulled the country closer to China.

India has supported the Maldives through multiple credit lines and interest-free treasury bill rollovers, including a $50 million rollover in May. Modi’s visit is seen as an effort to reclaim strategic space in the Indian Ocean, reaffirming the ‘Neighbourhood First’ policy at a time when China’s influence in Male has grown markedly under Muizzu.

FIIs Turn Bearish On India

Foreign investors are becoming more cautious about the Indian stock market. Foreign institutional investors’ (FIIs) bearish derivative bets on India have surged to a five-month high, with the long-short ratio falling to 15 per cent on Friday, its lowest since February. This sharp drop from 36.7 per cent at the start of July reflects rising caution over stretched valuations, muted earnings, and global tariff uncertainties, including fresh threats from the US targeting BRICS nations.

Israel Targets Last Major Gaza Town

Israel launched a fresh offensive into Deir al-Balah, one of the last major towns in central Gaza it had so far avoided, as ceasefire talks with Hamas stalled. The move comes amid fears for remaining hostages, with Israel accusing Hamas of stonewalling US-brokered negotiations. Palestinians in parts of the town have been urged to evacuate.

Israel believes around 20 hostages are still alive. Meanwhile, aid groups warn the crisis is worsening, with the UN calling Israel’s alternative aid route discriminatory. Hamas insists on a full Israeli withdrawal as a condition for any deal, a demand Israel has rejected as it aims to dismantle the group’s governing and military capabilities.

Trump Eases Up On China

In a major reversal, the Trump administration has allowed Nvidia to sell its H20 artificial intelligence chips to China, just three months after banning them. The H20, while lower-end, remains a key component in AI development. The move marks a shift from Trump's earlier hardline stance, which included triple-digit tariffs and sweeping tech restrictions aimed at curbing China’s military and technological rise. Beijing had retaliated by restricting exports of critical minerals, rattling US industries.

Now, instead of confrontation, Washington appears to be seeking cooperation. US officials reportedly sided with Nvidia’s view that allowing limited exports would better serve American tech interests, leaving China hawks and policy experts scrambling to reassess the new approach.

Trump may visit China ahead of the Asia-Pacific Economic Cooperation (APEC) summit, scheduled between 30 October and 1 November, or hold talks with Chinese President Xi Jinping on the sidelines of the event in South Korea, the South China Morning Post reported on Sunday, citing multiple sources.

From The States

Bihar: One-Third of Dalit Voters Credit Modi For Caste Census

A new survey of over 18,000 Scheduled Caste voters across Bihar has found that nearly one-third credit Prime Minister Narendra Modi for the state’s caste census, followed closely by Rahul Gandhi and Tejashwi Yadav. Conducted by the National Confederation of Dalit and Adivasi Associations (NACDAOR) between 10 June and 4 July, the poll covers 49 Assembly segments across six regions of the state.

The findings also show a deeply divided opinion on Nitish Kumar’s government: 48 per cent rated its performance as poor, while 45 per cent said it was good. The survey, conducted by Dalit enumerators, focused on trust in institutions, political preferences, and the perceived impact of the caste census.

Andhra: Jagan Named As Kickback Recipient In Liquor Scam Chargesheet

In a major development, Andhra Pradesh Police have filed a 305-page chargesheet in the Rs 3,500 crore liquor scam, naming former Chief Minister YS Jagan Mohan Reddy as a recipient of monthly kickbacks worth Rs 50–60 crore during his 2019–24 tenure. However, Jagan has not been listed as an accused yet.

The chargesheet alleges that the scam was orchestrated by key aide Kesireddy Rajasekhar Reddy, who routed funds through shell companies and party leaders. Jagan called the case “manufactured,” accusing the current TDP-led government of vendetta politics. The Enforcement Directorate is also probing the case under money laundering charges. The court is yet to take cognisance.

You’re all caught up—until next time.