Morning Brief: China Dodges Questions Over Poor Performance Of Its Military Gear In Pakistan; India To Procure 14,000 More GPUs; CEA Sees 6.3–6.8 Per Cent Growth In FY26; And More

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China Dodges Questions Over Performance Of Military Gear In Pakistan

The Chinese military on Thursday (29 May) avoided addressing pointed questions about the performance of its weapons used by Pakistan during the recent India-Pakistan conflict, PTI has reported. Chinese Defence Ministry spokesperson Sr Col Zhang Xiaogang brushed off reports of India recovering an unexploded PL-15E missile — marketed as China’s most advanced radar-guided missile — by labelling it merely as “export equipment” regularly displayed at defence exhibitions.

When asked about Indian claims that Chinese air defence and satellite systems had supported Pakistan and performed poorly, Zhang sidestepped the issue entirely, instead resorting to diplomatic platitudes, stating, “India and Pakistan are neighbours that cannot be moved away.” India has asserted that Pakistan’s Chinese-supplied HQ-9 air defence systems and missiles failed to deliver during the operation.

India AI Mission To Procure 14,000 More GPUs

The government has announced plans to procure an additional 14,000 GPUs under the India AI Mission, adding to the 18,000 GPUs already secured, surpassing the initial target of 10,000. The initiative aims to democratise AI access by developing indigenous Large Multimodal Models tailored to Indian culture, languages, and social norms, with projects like Sarvam’s model in advanced approval stages.

Minister Ashwini Vaishnaw said that India’s AI computing facility under the India AI Mission will be the world’s most affordable, with an average rate of Rs 115.85 per GPU hour for low-end GPUs and Rs 150 per GPU hour for high-end GPUs, compared to a global benchmark of $2.5-$3 per GPU hour. The government will provide a 40 per cent subsidy, reducing the cost to below Rs 100 per GPU hour.

CEA Sees 6.3–6.8 Per Cent Growth In FY26

Chief Economic Advisor V Anantha Nageswaran has said that a growth rate of 6.3–6.8 per cent for FY26 is a “reasonable prospect,” citing positive factors like lower energy prices, favourable monsoon, and improved monetary policy. Speaking at the CII Annual Business Summit 2025, he noted that tax relief for the middle class and potential tariff advantages could also aid momentum.

Nageswaran highlighted a disconnect between rising corporate profitability and slower growth in capital formation, stressing that this gap must close for sustainable growth. He also pointed out that private consumption, which forms 60 per cent of GDP, remains a key driver of India’s economy.

Other Developments

Apple Boosts iPhone Exports To US From India

Apple’s vendors shipped 2.9 million iPhones from India to the US in April, marking a 76 per cent year-on-year surge, according to market research firm Omdia. The increase comes amid Apple’s continued efforts to diversify production away from China and meet US demand from its Indian facilities.

Meanwhile, iPhone exports from China to the US dropped by an equivalent 76 per cent during the same period. Despite mounting pressure from President Donald Trump urging Apple to halt investments in India and relocate manufacturing to the US, the tech giant has not complied. Similar shipment volumes are expected in May.

India To Release Crypto Policy Paper In June

India is expected to release a discussion paper next month outlining possible policy frameworks for crypto assets, drawing on inputs from the IMF and Financial Stability Board studies. The move comes as global momentum for digital currencies grows, notably with US President Donald Trump endorsing cryptocurrencies.

The paper will seek public input and examine international regulatory practices, as India maintains an ambiguous stance—taxing crypto gains without granting them legal status. Officials emphasized that any decision will be taken cautiously and in the national interest, avoiding "knee-jerk" reactions. .

IAF Chief Cites Churchill To Flag HAL's Delivery Delays

Air Chief Marshal Amar Preet Singh has raised serious concerns over persistent delays in key defence projects, particularly the Tejas fighter jet programme. Speaking at the CII Annual Business Summit, he criticised Hindustan Aeronautics Ltd (HAL) for failing to deliver even a single Tejas Mk1A jet despite repeated assurances.

Quoting Churchill, he warned against making promises that cannot be fulfilled and urged better trust and coordination between the armed forces and industry. This isn’t his first critique—earlier this year, he expressed lack of confidence in HAL during Aero India 2025 and warned that delays could jeopardise India's defence preparedness.

US Court Temporarily Reinstates Trump Tariffs

A US court temporarily reinstated President Donald Trump’s 2 April tariffs on Thursday (29 May), a day after another court had ruled them illegal. The trade court’s decision, which blocked the tariffs under the 1977 International Emergency Economic Powers Act, followed challenges from twelve US states and five small businesses.

The appeals court’s stay keeps the tariffs in effect while the White House’s appeal is considered, with the case potentially escalating to the US Supreme Court if the administration loses. Trump’s chief trade adviser, Peter Navarro, vowed to fight the ruling, asserting the tariffs would remain for now as trade negotiations continue.

US-China Trade Talks Stall

US-China trade talks have stalled, and US Treasury Secretary Scott Bessent says direct intervention from President Donald Trump and Chinese President Xi Jinping may be needed to break the deadlock. Speaking to Fox News, Bessent emphasised the complexity of the negotiations and the lack of progress despite a recent 90-day truce.

While the temporary agreement eased market tensions, it failed to resolve key US concerns about China's state-driven economic policies. Meanwhile, the Trump administration has shifted focus to trade talks with other partners like Japan, India, and the EU. .

From The States

Telangana: Kavitha Slams BRS Leadership, Hints At New Party

BRS MLC K Kavitha launched a sharp attack on her party’s leadership after a private letter she wrote to her father and BRS chief K Chandrashekar Rao was leaked. Addressing the media, Kavitha questioned the source of the leak and alleged internal sabotage, claiming efforts were underway to merge BRS with the BJP — a move she strongly opposes.

Kavitha expressed disappointment over the party’s silence amid personal attacks and media smear campaigns against her. On her political future, she said she would only work under KCR’s leadership but did not rule out the possibility of launching a new party.

Bihar: RJD, Congress Raise Concern Over Nitish Kumar’s Health

Ahead of the Bihar Assembly elections, the opposition RJD-Congress-Left alliance has raised concerns about Chief Minister Nitish Kumar’s health and questioned who is actually running the state government. They allege that bureaucrats and a behind-the-scenes group are making key decisions, undermining government accountability.

RJD leader Tejaswi Yadav and MP Manoj Jha expressed worries over the state’s administration and Nitish’s erratic recent public appearances. Senior Congress leader Tariq Anwar described the Chief Minister as “bimar” (unwell) and warned that Bihar’s future cannot be left to uncertain leadership.

You’re all caught up—until next time.