Kick-start your morning with Swarajya\u2019s Morning Brief \u2013 your news fix, curated for clarity and insight.<\/p>\n
China Among Top Destinations Of India’s Electronics Exports<\/p>\n
India\u2019s electronics exports surged 47 per cent year-on-year<\/a> in the April\u2013June 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\u2019s growing footprint in global electronics trade.<\/p>\n 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.<\/p>\n India To Allow Electronics JVs With Chinese Firms, But With Conditions<\/p>\n 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<\/a>. The Ministry of Electronics and IT (MeitY) believes such collaborations are necessary to strengthen local manufacturing and make India\u2019s Rs 22,919-crore component production scheme viable.<\/p>\n 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\u2019s informal trade curbs and rare earth export restrictions could derail India\u2019s $32-billion smartphone export target for FY25.<\/p>\n Monsoon Session Begins Today<\/p>\n The monsoon session of Parliament begins today<\/a> (21 July), with the government indicating it is open to discussing Operation Sindoor and US President Donald Trump\u2019s 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.<\/p>\n 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.<\/p>\n Other Developments<\/p>\n India To Give Maldives New LoC Before PM\u2019s Trip<\/p>\n India is working on a new line of credit<\/a> for the Maldives that could be finalised during Prime Minister Narendra Modi\u2019s July 25\u201326 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.<\/p>\n India has supported the Maldives through multiple credit lines and interest-free treasury bill rollovers, including a $50 million rollover in May. Modi\u2019s visit is seen as an effort to reclaim strategic space in the Indian Ocean, reaffirming the \u2018Neighbourhood First\u2019 policy at a time when China\u2019s influence in Male has grown markedly under Muizzu.<\/p>\n FIIs Turn Bearish On India<\/p>\n Foreign investors are becoming more cautious about the Indian stock market. Foreign institutional investors\u2019 (FIIs) bearish derivative bets on India have surged to a five-month high<\/a>, 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. <\/p>\n In July, FIIs sold Rs 17,000 crore worth of Indian equities after being net buyers in the previous two months. The Nifty slipped below 25,000, and technical analysts warn that a further slide below 24,800 could trigger deeper losses. However, some see room for a short-covering rally, as such low sentiment levels often precede reversals.<\/p>\n Israel Targets Last Major Gaza Town<\/p>\n Israel launched a fresh offensive into Deir al-Balah, one of the last major towns<\/a> 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. <\/p>\n Israel believes around 20 hostages are still alive. Meanwhile, aid groups warn the crisis is worsening, with the UN calling Israel\u2019s 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\u2019s governing and military capabilities.<\/p>\n Trump Eases Up On China<\/p>\n In a major reversal, the Trump administration has allowed<\/a> 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\u2019s military and technological rise. Beijing had retaliated by restricting exports of critical minerals, rattling US industries. <\/p>\n Now, instead of confrontation, Washington appears to be seeking cooperation. US officials reportedly sided with Nvidia\u2019s view that allowing limited exports would better serve American tech interests, leaving China hawks and policy experts scrambling to reassess the new approach.<\/p>\n 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\u00a0South China Morning Post\u00a0reported on Sunday, citing multiple sources.<\/p>\n From The States<\/p>\n Bihar: One-Third of Dalit Voters Credit Modi For Caste Census<\/p>\n