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Reeling from Trump’s tariffs, India and China seek a business reboot

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Modi and Xi last had a bilateral meeting in 2017 [BBC]

India’s Prime Minister Narendra Modi landed in China on Sunday with the sting of Donald Trump’s US tariffs still top of his mind.

Since Wednesday, tariffs on Indian goods bound for the US, like diamonds and prawns, now stand at 50% – which the US president says is punishment for Delhi’s continued purchase of Russian oil.

Experts say the levies threaten to leave lasting bruises on India’s vibrant export sector, and its ambitious growth targets.

China’s Xi Jinping, too, is trying to revive a sluggish Chinese economy at a time when sky-high US tariffs threaten to derail his plans.

Against this backdrop, the leaders of the world’s two most populous countries may both be looking for a reset in their relationship, which has previously been marked by mistrust, a large part of it driven by border disputes.

“Put simply, what happens in this relationship matters to the rest of the world,” Chietigj Bajpaee and Yu Jie of Chatham House wrote in a recent editorial.

“India was never going to be the bulwark against China that the West (and the United States in particular) thought it was… Modi’s China visit marks a potential turning point.”

India and China are economic powerhouses – the world’s fifth and second largest, respectively.

But with India’s growth expected to remain above 6%, a $4tn (£3tn) economy, and $5tn stock market, it is on the way to moving up to third place by 2028, according to the International Monetary Fund (IMF).

“While the world has traditionally focused on the single most important bilateral relationship in the world, US and China, it is time we shift more focus on how the second and would-be third largest economies, China and India, can work together,” says Qian Liu, founder and chief executive of Wusawa Advisory, based in Beijing.

But the relationship is deeply challenging.

The two sides have an unresolved and long-standing territorial dispute – that signifies a much broader and deeper rivalry.

Violence erupted across Ladakh’s Galwan Valley in June 2020 – the worst period of hostility between the two countries in more than four decades.

The fallout was largely economic – a return of direct flights was taken off the table, visas and Chinese investments were put on hold leading to slower infrastructure projects, and India banned more than 200 Chinese apps, including TikTok.

“Dialogue will be needed to help better manage the expectations of other powers who look to India-China as a key factor of Asia’s wider stability,” Antoine Levesques, senior fellow for South and Central Asian defence, strategy and diplomacy at IISS, says.

There are other fault lines too, including Tibet, the Dalai Lama, and water disputes over China’s plans to build the world’s largest hydroelectric power project across a river shared by both nations, as well as tensions with Pakistan after the Pahalgam attack.

India also does not currently enjoy good relations with most of its neighbours in South Asia, whereas China is a key trading partner for Pakistan, Bangladesh, Sri Lanka and Afghanistan.

“I would be surprised if a BYD factory is coming to India, but there may be some soft wins,” Priyanka Kishore, founder and principal economist at research company Asia Decoded, says.

It’s already been announced that direct flights will resume, there may be more relaxations on visas, and other economic deals.

However, the relationship between Delhi and Beijing is “an uncomfortable alliance to be sure”, notes Ms Kishore.

“Remember at one point, the US and India were coming together to balance China,” she adds.

But India is completely perplexed with the US and its position: “So it’s a smart move – and feeds into the multipolar narrative that both India and China believe in.”

Modi is travelling to China for the Shanghai Cooperation Organisation (SCO) – a regional body aimed at projecting an alternative worldview to that of the West. Members include China, India, Iran, Pakistan and Russia.

In the past, India has downplayed the organisation’s significance. And critics say it hasn’t delivered on substantial outcomes over the years.

The June SCO defence ministers’ meeting failed to agree on a joint statement. India raised objections over the omission of any reference to the deadly 22 April attack on Hindu tourists in Indian-administered Kashmir, which led to the worst fighting in decades between India and Pakistan.

But experts say the downturn in Delhi’s relations with Washington has prompted India to rediscover the utility of the SCO.

China, meanwhile, will value the optics of Global South solidarity amid Trump’s tariff chaos.

The Brics grouping – of which China, India, Russia, Brazil and South Africa are the founding members – has drawn the ire of Trump, who has threatened to slap additional tariffs on group members on top of their negotiated rates.

Getty Images Employees work on the SMT (surface mount technology) shop floor where components are mounted on a PCB (printed circuit board) at Padget Electronics Pvt., a subsidiary of Dixon Technologies Ltd., in Noida, India.
Chinese smartphones manufactured in India hold a significant market share too. [BBC]

Modi last met Xi and Russia’s Vladimir Putin at the Brics summit in Russia in October 2024. Last week, Russian embassy officials said Moscow hopes trilateral talks with China and India will take place soon.

“Leveraging each of their advantages – China’s manufacturing prowess, India’s service sector strengths, and Russia’s natural resource endowment – they can work to reduce their dependence on the United States to diversify their export markets and ultimately reshape global trade flows,” Bajpaee and Yu said in their editorial.

Delhi is also leveraging other regional alliances, with Modi stopping in Japan on the way to China.

“Asean and Japan would welcome closer co-operation between China and India. It really helps in terms of supply chains and the idea of Make in Asia for Asia,” Ms Kishore says, referring to the political grouping comprising 10 Southeast Asian economies.

India continues to be reliant on China for its manufacturing, because it sources raw materials and components from there. It will likely be looking for lower import duties on goods.

India’s strict industrial policies have so far held it back from benefiting from the supply chain shift from China to South East Asian countries, according to experts.

There is a case for partnership, a strong one, says Ms Kishore, where India pitches to manufacture more electronics.

She points out that Apple makes airpods and wearables in Vietnam, and iPhones in India, and so there would be no overlap.

“Faster visa approvals would be an easy win for China as well. It wants market access in India either directly or through investments. It’s dealing with a shrinking US market, it’s already flooded Asean markets, and a lot of Chinese apps like Shein and TikTok are banned in India,” says Ms Kishore.

“Beijing would welcome the opportunity to sell to 1.45 billion people.”

Given the complexity of the relationship, one meeting is unlikely to change much. There is a long way to go on improving China-India ties.

But Modi’s visit to China could repair some animosity and send a very clear signal to Washington that India has options.

[BBC]



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Shafali 69 not out , spinners lead India’s rout of Sri Lanka

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Shafali Verma took 27 balls to bring up her fifty [BCCI]

A quick glance at the head to head record is enough to show the gulf between India and Sri Lanka in women’s T20Is. Despite that, the manner in which India have swept Sri Lanka aside two games in a row would have surprised watchers and the hosts alike. The story in the second T20I followed a similar script to the first. Once again, India’s spinners squeezed Sri Lanka’s middle order before one of their top-order batters made easy work of the chase.

Left-arm spinners Vaishnavi Sharma and N Shree Charani picked up two wickets apiece after Sneh Rana, in the XI in place of the indisposed Deepti Sharma, sucked out the momentum from Sri Lanka’s batting. If it was Jemimah Rodrigues’ half-century in the first game, Shafali Verma was at her brutal best in the second, finishing on an unbeaten 69 in just 34 balls, to help India get to the 129-run target at a run-rate close to 11 an over with 49 balls to spare.

India went 2-0 up at the end of the Visakhapatnam leg, with the next three games to be played in Thiruvananthapuram.

Sri Lanka were jolted in the opening over after being asked to bat. Vishmi Gunaratne’s uppish drive was caught by Kranti Gaud in her follow-through. Chamari Athapaththu then started the charge. After the defeat in the first game, she asked her batters to step up and find ways of scoring. She was intent on leading from the front. She used her feet against Gaud to slash her in front of point. Two balls later, Gaud almost got back at the Sri Lanka captain.

Charani, who dropped two simple catches on Sunday, misjudged Athapaththu’s slash and conceded a six. She charged in from the boundary line and then ran back, missed the ball completely despite a leap. Athapaththu blazed away with the field restrictions on, scoring 31 off 24 balls out of Sri Lanka’s 38 in 5.3 overs at that stage.

After her dismissal, Hasini Perera and Harshitha Samarawickrama continued to bat with high intent. They primarily scored square of the wicket and added 28 in the three-and-a-half overs. And then came the squeeze from India.

On a day she was newly crowned the No. 1 T20I bowler in the ICC rankings, Deepti missed a T20I for the first time since 2019 – after 92 straight games – because of a mild fever. Harmanpreet Kaur has often turned to her when in search of control, but on Tuesday, Rana fit into the role with ease.

Playing her first T20I in India since 2016 – she played 15 away from home in between – Rana’s first task was to stop a belligerent Athapaththu, and she delivered. She kept the Sri Lanka captain guessing with flight and dip before dismissing her. With Athapaththu itching to cut loose, Rana generously flighted one. It landed slightly shorter than Athapaththu expected because of the dip, and she ended up miscuing it to long-off.

Rana then returned with Perera and Samarawickrama scoring at a good tempo, bowled a maiden and that turned the tide. It allowed left-arm spinner Charani to slip in a few quiet overs, which resulted in Perera’s dismissal. Vaishnavi also returned to pick up her first international wicket, with Charani, who denied her in the first T20I by dropping a dolly at short fine leg, taking a simple catch at the same spot after Nilakshika Silva top-edged a sweep.

Sri Lanka hit 11 boundaries in the first nine overs, but could hit only two fours in the rest of their innings. They lost six for 24 to be restricted to a below-par total for the second game in a row, which was never going to challenge the hosts. Three run-outs for a second game in a row did not help matters either.

If Sunday was an opportunity missed by Shafali, she more than made up for it on Tuesday. She was happy to bide her time at the start, with Smriti Mandhana being the aggressor. Once Mandhana fell, caught at point in a bid to hit Kavisha Dilhari’s offspin inside out over the off side, Shafali took centrestage. Inoka Ranaweera’s left-arm spin with the field restrictions in place was just the tonic she needed.

Shafali hit Ranaweera for successive fours in the penultimate over of the powerplay – both by dancing down the track and lofting her over cover. She then took apart Athapaththu’s offspin, hitting here for 4, 6, 4 in the sixth over of the chase: first sweeping a short ball through backward square leg, then thumping a full ball straight into the sight-screen and then lifting one over extra cover.

With the in-form Rodrigues for company, there was no respite for Sri Lanka’s bowlers. Rodrigues also tore into Ranaweera, hitting her for two fours and a six as the left-arm spinner was taken for 31 in her two overs.

In an attempt to maintain the high tempo, Rodrigues holed out to long-on. Shafali soon completed her fifty from just 27 balls. She picked Shashini Gimhani’s left-arm wristspin from the hand and thumped her for back-to-back boundaries in a 12-run over that put India on the brink.

Sri Lanka earned a consolation when Malki Madara’s dipping yorker deceived Harmanpreet. But they knew, as Athapaththu conceded after the game, that the batters failed to make the helpful conditions count in successive games.

Brief scores:
India Women  129 for 3 in 11.5 overs  (Smriti Mandhana 14, Shafali Verma  69*, Jemimah Rodrigues 26, Harmanpreet Kaur 10; Malki Madara 1-22, Kavya Kavindi 1-3, Kavisha Dilhari 1-15) beat Sri Lanka Women  128 for 9 in 20 overs  ( Chamari Athapaththu 31, Hasini Perera 22,Harshitha Samarawickrama 33, Kavisha Dilhari 14, Kaushini Nuthyangana 11; Kranti Goud 1-31, Sneh Rana 1-11, Shree Charani 2-23, Vaishnavi Sharma  2-32) by seven wickets

[Cricinfo]

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Implementation of the loan scheme, “Sustainable Agriculture Program”

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With the objective of enhancing the living conditions of the agricultural community and increasing the contribution of the agricultural sector to the GDP, ‘Smallholder Agribusiness Partnerships Programme’ is being implemented with the financial contribution form the government and the International Fund for Agricultural Development.

The Ministry of Agriculture, Livestock, Lands and Irrigation is
implementing the program in collaboration with the Regional Development Department of the Central Bank of Sri Lanka. All recoveries from loans provided under the program shall be directed to a revolving fund titled the “Sustainable Agricultural Fund”, which shall be utilized exclusively for the provision of
agricultural loans. Using the said fund, it is proposed to implement an agricultural loan scheme titled the “Sustainable Agriculture Programme” for individuals and institutions engaged in agriculture and related activities.

It is expected that an amount of Rs. 800 million from the funds available in the Sustainable Agriculture Fund will be allocated for the implementation of the Sustainable Agriculture Program in the year 2026.

Accordingly, the Cabinet of Ministers approved the proposal made by the President in his capacity as the Minister of Finance, Planning and Economic Development to implement the “Sustainable Agriculture Program” loan scheme through the Participatory Finance Institution as an annual program from the year 2026.

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Cabinet nod to implement ‘Suraksha’ Student Insurance Programme in the year 2025 / 26

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The Ministry of Education, Higher Education and Vocational Education has entered into agreements with Sri Lanka Insurance Corporation General Limited to execute the Suraksha Student Insurance programme which is implemented with the objective of facilitating to maintain student education activities of students who experience disturbances to education due to numerous health issues without any interruption.

From this, approximately 40 lacks of students educated in government schools, government approved private schools, Pirivena and assisted special schools are covered under health
insurance, accident coverage, and life insurance categories.

Considering the issues recognized when implementing this programme, the Cabinet of Ministers granted approval to the particulars furnished by the Prime Minister in her capacity in the post of the Minister of Education, Higher Education and
Vocational Education that the ‘Suraksha’ Student Insurance Programme for the year 2025 / 2026 will be implemented including the following amendments and thereby actions will be taken to issue relevant circular instructions.

• Implementation of ‘Suraksha’ Student Insurance Programme until 31.08.2026 in relation to the year 2025 / 2026

• Amendment of the annual income of low income category considered at granting parent death benefit from rupees 180,000/- to rupees 240,000/-

• Granting benefit up to rupees 75,000/- for the Scoliosis Brace which is used for correcting distortion of the spinal code and Cochlea Equipment.

• Granting benefits up to rupees Rs. 20,000/- for students those who are taking medicine for longer periods for ailments in the category of critical illness category and another 07 identified ailments.

• Adding 05 more ailments as Pneumothorax, Encephalitis, Thalassemia, Hereditary Spherocytosis and Sickle Cell Anemia which are in the critical ailment category.

• From 01.09.2025, providing opportunity to handover the claim applications for obtaining benefits to any regional office of Sri Lanka Insurance General Limited.

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