India not far behind US, China in AI race: Ashwini Vaishnaw counters WEF moderator at Davos

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Improved transport networks and faster clearances could allow India to challenge Vietnam and Malaysia more strongly. The path forward demands reforms, faster execution and sustained policy clarity. India lags behind countries such as China and Singapore on this front. Perceptions around corruption and institutional stability have also pulled scores down. High logistics costs and complex tax compliance continue to create pressure for manufacturers.

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However, they also raise concerns around privacy, cybersecurity and the role of banks in a fully digital monetary system. The bulk of the growth was thus through greenfield investment, contrasting with the traditionally more important role of international project finance within the telecommunications sector. The report added that the total value of international project finance increased by 7 per cent to USD 218 billion, while the number of projects declined by only 5 per cent.

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India’s two-way goods trade with ASEAN hovers around US$110 billion. Still, both sides have agreed to fast-track a review of the ASEAN-India Trade in Goods Agreement to reduce non-tariff barriers and open services markets. This eastward economic orientation reinforces India’s Indo-Pacific vision and places regional connectivity at its core. United States President Donald Trump has publicly criticized Canada’s foreign policy.

At the 6th BIMSTEC Summit in Bangkok in April 2025, member states adopted the Bangkok Vision 2030. They signed new agreements on maritime connectivity and security cooperation, signalling intent to re-anchor the Bay of Bengal as a geoeconomic hub. Taken together, these developments point to a set of structural forces that are often underestimated. Electrification increases efficiency and reduces primary energy demand for the same economic output.

It’s also worth pointing out that at least some of this is due to battery swapping for fleets where it makes sense, mostly drayage and lower speed urban heavy trucks. China has cracked the code on heavy truck battery swapping, with national standards, governmental support and guidance and industry embrace, things the west has not remotely managed to embrace to date. I noted the conditions for success for battery swapping a couple of years ago, and China has nailed them, accelerating heavy truck electrification.

India’s imports from China continue to be dominated by electronics, machinery, chemicals and plastics. She warned that the current momentum could prove fragile if Beijing changes its policy stance. But what if the state policy changes and they too tighten the screws on shipments from India? Ministry data shows India exported $1.056 billion worth of marine products to China during the April–November period, a rise of 20.4 per cent compared with the same period last year.