Morning Brief: Apple Partner Foxconn Pumps $1.5 Billion Into India As Trump Whines; China Helped Pakistan With More Than Just Weapons; Defence Stocks Surge 50 Per Cent; And More

Kick-start your morning with Swarajya’s Morning Brief – your news fix, curated for clarity and insight.

Foxconn Pumps $1.5 Billion Into India As Trump Whines

Foxconn, Apple’s main iPhone manufacturer, is investing $1.5 billion into its India unit via its Singapore subsidiary as part of a broader shift in production away from China, reports say. The company is expanding its facilities in southern India, where the bulk of Apple’s India-assembled iPhones are produced.

Apple aims to source most of the iPhones it sells in the US from India by the end of next year, prompting criticism from US President Donald Trump.

Trump stated he has urged Apple CEO Tim Cook to halt the move and instead expand domestic manufacturing. Meanwhile, Apple assembled $22 billion worth of iPhones in India over the past year, marking a 60 per cent increase in production.

China Helped Pakistan With More Than Just Weapons

A think tank under India’s Ministry of Defence has revealed that China provided Pakistan with air defense and satellite support during its recent clash with India.

According to Ashok Kumar, director general of the Centre for Joint Warfare Studies, China assisted Pakistan in reorganising its radar and air defence systems to better detect Indian troop and weapon deployments. He also stated that China helped Pakistan adjust its satellite coverage over India in the 15-day period between the April 22 massacre — which killed 26 mostly Indian tourists — and the start of hostilities.

Kumar noted that this support allowed Pakistan to redeploy its air defence radars to detect any Indian aerial activity. Although the Indian government hasn’t publicly confirmed China’s role, the think tank’s assessment suggests Beijing’s involvement went well beyond arms supply, offering key logistical and intelligence backing to Islamabad.

Defence Stocks Surge 50 Per Cent From February Low

The combined market capitalisation of 18 listed defence companies has reached Rs 11.23 lakh crore, up 50 per cent from the February low of Rs 6.95 lakh crore. The Nifty India Defence Index surged over 50 per cent since February, with gains of 24.6 per cent in March, 11.5 per cent in April, and 9 per cent so far in May.

Ten stocks rebounded 55–112 per cent from their 52-week lows, including DCX Systems, Hindustan Aeronautics, and Data Patterns, while eight others rose 58–200 per cent. Mutual funds raised their holdings in 11 defence firms in April. The rally was fuelled by rising geopolitical tensions, strong government backing for domestic defence manufacturing, and renewed global interest in systems like the BrahMos.

Other Developments

Mutual Fund Assets Surge 23 Per Cent To Rs 65.74 Lakh Crore

Mutual fund assets in India reached a record Rs 65.74 lakh crore in FY25, marking a 23 per cent year-on-year increase driven by strong net inflows and market gains. Net inflows totalled Rs 8.15 lakh crore, with equity-oriented schemes attracting a record Rs 4.17 lakh crore, while SIP contributions surged 45 per cent to Rs 2.89 lakh crore.

The number of mutual fund folios hit an all-time high of 23.45 crore, with unique investors crossing 5.34 crore, including 26 per cent women—a rise reflecting greater financial awareness. Equity scheme folios grew by 33.4 per cent to 16.38 crore, while debt schemes saw a slight decline in folios but a 20.5 per cent increase in assets under management.

New FDI Rules Target Indirect Foreign Control In India

India plans to tighten foreign direct investment (FDI) rules to target indirect foreign ownership through complex structures, aiming to close regulatory loopholes. The new rules will define "foreign-owned and controlled entities" (FOCE) to include Indian companies with indirect foreign investment, making them subject to FDI regulations during share transfers or restructurings.

Transfers of indirect shareholdings will require compliance with sectoral caps and must be conducted at fair market value. The changes aim to prevent foreign investors, especially from border-sharing countries like China, from bypassing FDI limits using layered ownership or offshore funds. The proposal is close to finalisation, with agreement from the Finance Ministry and Reserve Bank of India.

Russia-Ukraine Ceasefire Talks To Begin, Says Trump

US President Donald Trump said Russia and Ukraine will "immediately" begin ceasefire talks following his phone call with Russian President Vladimir Putin. While Trump described the conversation as positive, no specific timeline for peace negotiations was given.

Putin expressed willingness to work on a memorandum for a future peace agreement, but Ukraine's President Zelensky insisted on a full and unconditional ceasefire. Zelensky also emphasized that any decisions must involve Ukraine and called for continued US and European involvement in the talks.

From The States

Bengal: Mamata Threatens Action Against Agitating Teachers

West Bengal Chief Minister Mamata Banerjee warned protesting teachers not to cross the "Lakshman Rekha" of agitation as their sit-in over the Supreme Court’s cancellation of 26,000 SSC appointments entered Day 13. Banerjee defended the government, stating the jobs were lost due to legal petitions by others and not by the state's action, urging the teachers to trust the state and fight the issue legally.

The protests outside Bikash Bhawan turned violent last week, leading to police action, but none of the 15 teachers summoned in connection appeared for questioning. TMC leaders Abhishek Banerjee and Bratya Basu also called for restraint, reiterating the state’s support through a review petition in the Supreme Court.

Tamil Nadu Gets Most Funds from Centre’s Rural Job Scheme

Tamil Nadu has become the top recipient of Central government funds for MGNREGS in FY26 so far, followed by Uttar Pradesh and Bihar. Karnataka, also governed by the opposition, ranks among the top 10 recipients.

This funding distribution comes amid political debates and allegations from opposition-ruled states about the fairness of fund allocations under Centrally Sponsored Schemes. Since 1 April, Tamil Nadu has received over Rs 2,900 crore. Uttar Pradesh and Bihar, which much large populations, have received Rs 2,100 crore and Rs 2,000 crore respectively.

You’re all caught up—until next time.