News Brief
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China's Shadow Ban Disrupts Apple’s India Plans
Foxconn has withdrawn over 300 Chinese engineers from its iPhone manufacturing facilities in India, a move seen as part of China’s growing restrictions on the export of skilled labor, equipment and manufacturing technology to the country. The development is likely to slow Apple’s production ramp-up for the iPhone 17, as the absence of experienced staff hampers the training of Indian workers.
Beijing has in recent months quietly tightened curbs on exports to India across several strategic sectors, including rare earth magnets used in electric vehicles, specialty fertilisers, and tunnel boring machines. Indian officials were informed of Foxconn’s decision, though no reason was provided. The withdrawal comes as India seeks to emerge as a global manufacturing hub, even as China uses regulatory levers to block the shift of high-end production capabilities out of the country.
Quad Moves To Break China’s Hold On Rare Earths
The Quad countries—India, the US, Japan, and Australia—have launched a new initiative to diversify and secure global supply chains for critical minerals, aiming to reduce overreliance on China. In a joint statement following their foreign ministers’ meeting, the bloc warned that dependence on a single country for processing and refining key minerals exposes economies to coercion, price manipulation, and supply disruptions.
Without naming China, the statement cited the use of non-market practices and abrupt supply cuts as threats to economic and national security. The ministers also condemned China’s provocative actions in the South China Sea and announced new cooperation on maritime security and emerging technology.
Calorie Intake Of Poorest Indians Rises
The poorest Indians have seen a modest rise in daily calorie intake in both rural and urban areas during 2022–24, slightly narrowing the gap with the richest, government data shows. Among the bottom 5 per cent by spending, average daily intake rose to 1,688 kcal in both rural and urban areas in 2023–24, up from 1,607 and 1,623 kcal, respectively, a year earlier.
Meanwhile, intake by the top 5 per cent declined—from 3,116 to 2,941 kcal in rural areas, and from 3,478 to 3,092 kcal in urban areas. The gap remains significant: rural poor consume just 57 per cent of what the richest do. Free grain distribution and rural employment schemes are credited with improving food access for the poor.
Other Developments
Lending Growth Stays Tepid Despite June Rate Cuts
Bank credit growth in India remains subdued despite a cumulative 100-basis-point policy rate cut this year, rising just 9.6 per cent year-on-year until mid-June—less than half the 19.1 per cent pace seen a year ago. Credit to large corporates rose only 1 per cent, and home loan growth slowed to 9 per cent from 38.7 per cent last year, RBI data showed.
Experts attribute the trend to firms refinancing high-cost loans via the bond market and borrowers deferring loans in anticipation of further rate cuts. Lending to NBFCs contracted 0.3 per cent. Crisil noted the bond market is increasingly replacing bank credit for top-rated borrowers due to quicker rate transmission. However, gold and renewable energy loans stood out, growing over 100 per cent annually.
Indians Consuming More Protein And Fat, Says Govt Data
Indians are eating more protein-rich and fatty foods than they did a decade ago, with fat intake rising more sharply, according to new government data. Per capita daily protein intake increased from 58.8 grams to 63.4 grams in urban areas and from 59.3 grams to 61.8 grams in rural areas between 2009–10 and 2023–24.
Fat consumption showed a steeper rise, from 43.1 grams to 60.4 grams in rural areas and from 53.0 grams to 69.8 grams in urban areas. The share of cereals in protein intake declined by 14 per cent in rural areas and 12 per cent in urban centres, with eggs, meat, fish, milk and other foods gaining share. The data, from the Ministry of Statistics, is based on household consumption surveys conducted in 2022–23 and 2023–24.
Immigration experts warn that H-1B applicants should prepare for longer processing times, increased documentation demands, and higher denial rates under a second Trump administration. The filing deadline for this year’s H-1B visa applications closed Tuesday, following a one-day extension due to technical issues.
Experts cite trends from Trump’s first term, when denial rates peaked at 15 per cent in 2018, compared to 3 per cent under Biden. With Indians being the largest recipients of H-1Bs, they are expected to be disproportionately affected. Many are now exploring alternatives such as L-1 and EB-5 visas.
Trump Closes Vietnam Backdoor For Chinese Exports
President Donald Trump has announced a trade deal with Vietnam that effectively shuts down a key loophole used by Chinese exporters to bypass US tariffs. Under the agreement, Vietnamese goods will face a 20 per cent tariff when entering the US, while American exports to Vietnam go duty-free. More critically, a steep 40 per cent levy will now apply to goods “transshipped” through Vietnam, a move to block Chinese products from being rerouted through the country to evade existing trade penalties.
However, it remains unclear how this provision would impact products largely made in China and then finished in Vietnam. The deal comes just days before a 90-day suspension of Trump’s earlier 46 per cent tariff threat on Vietnam was set to expire.
From The States
War Of Words Escalates Over Bihar Voter Roll Revision
Opposition leaders on Wednesday (2 July) accused the Election Commission of attempting to disenfranchise migrant workers in Bihar through a rushed and selective Special Intensive Revision (SIR) of electoral rolls ahead of the assembly elections.
In a meeting with the Chief Election Commissioner, they warned that the move could lead to public protests and legal action. Congress’s Abhishek Manu Singhvi called the SIR “the worst assault on the Constitution,” while RJD and CPIML leaders said it was aimed at excluding Bihar’s migrant workers, who make up nearly 20 percent of the electorate.
Maharashtra Cabinet Clears Rs 1.36 Lakh Crore In Projects
The Maharashtra government has approved 19 major projects worth Rs 1.36 lakh crore, with the potential to create over 1 lakh jobs. The cabinet, chaired by Chief Minister Devendra Fadnavis, also cleared 11 logistics parks—six in Vidarbha and five in Pune and Mumbai—expected to generate an additional 30,000 jobs.
The approved projects span sectors including semiconductors, EV components, lithium-ion batteries, defence, green steel, and textiles. Major investors include Hyundai, Reliance Infrastructure, Paras Defence, and Uno Minda.
Karnataka Congress Leadership Rift Resurfaces Despite Denials
The simmering leadership tussle within the Karnataka Congress resurfaced Wednesday as Chief Minister Siddaramaiah asserted he would complete his full five-year term, while Deputy CM D K Shivakumar admitted he had "no option" but to stand by the CM. The public statements, intended to project unity, came amid renewed speculation about a mid-term leadership change.
The speculation gained traction after Congress MLA Iqbal Hussain claimed Shivakumar would become CM “200 per cent” within two months — remarks that prompted a show-cause notice. While Congress leaders, including AICC's Randeep Surjewala, have denied any discussion of a power-sharing formula, recent meetings with legislators have stirred political chatter once again.
You’re all caught up—until next time.