Title: Strengthened US-India Partnerships and Economic Developments
Introduction:
The recent state visit of Indian Prime Minister Narendra Modi to the United States has resulted in significant deals in defense, technology, and business collaborations. President Joe Biden hosted Modi at the White House, emphasizing the stronger and closer partnership between the two nations. This strategic alliance seeks to counter China’s influence in the region. However, Biden’s decision to host Modi has faced criticism due to concerns over human rights and religious minority treatment in India.
US-India Deals:
During the visit, India committed to purchasing armed MQ-9B SeaGuardian drones from US defense contractor General Atomics. Additionally, memory chipmaker Micron plans to invest $2.75 billion in a semiconductor assembly and test facility in India, with $800 million coming from the US company. Moreover, an agreement was signed to co-manufacture fighter jet engines in India with General Electric.
Efforts to Counter China:
The deals and partnerships between the US and India reflect Washington’s strategy to draw India into its orbit and enhance alliances to counter China’s growing influence. Although India maintains a non-aligned foreign policy, it has increasingly aligned with the United States amidst the escalating tensions with Beijing.
Criticism and Concerns:
President Biden faced criticism for allowing Modi’s state visit, as critics argue that Indian democracy is under threat and express concerns about the treatment of Muslim and Christian minorities in India.
Indian Stock Market Performance:
The Indian stock market has experienced significant growth, with its overall value increasing by over 14% in the past three months. This positive performance is attributed to foreign investors’ confidence in India’s robust economic growth and potential.
Upcoming Economic Data, Elections, and Anniversaries:
Japan will release its May consumer price index (CPI) inflation rate data. Furthermore, general elections are scheduled in Guatemala, Sierra Leone, and Greece over the weekend. Notably, the seventh anniversary of the Brexit referendum and the first anniversary of the US Supreme Court’s decision to overturn Roe vs. Wade, the ruling on abortion rights, will also be observed.
Top Stories:
1. Tragedy Strikes as Submarine Exploring Titanic Wreck Implodes: A submarine named Titan, which was exploring the Titanic wreck, suffered a catastrophic implosion, resulting in the death of all five passengers on board.
2. Bank of England Increases Interest Rates: The Bank of England unexpectedly raised interest rates to 5% in an effort to combat persistent inflation. This move has led to speculations of a potential recession for the UK.
3. Germany Signs Long-Term LNG Import Deal with the US: Germany has signed a long-term deal to import liquefied natural gas (LNG) from the US as part of its plan to reduce dependency on Russian energy amidst the ongoing conflict in Ukraine.
4. South Korea’s Increasing Exports to the US: South Korea exported more goods to the US than China in the previous year, highlighting a shift in business models as the US strengthens its supply chains with allied nations and China focuses on self-sufficiency in manufacturing.
5. Deloitte Resigns as Byju’s Mayor: Deloitte has resigned as the auditor for Byju’s, a prominent Indian education technology company, citing the company’s failure to deliver its financial results for the current fiscal year.
Imran Khan’s Political Challenges in Pakistan:
Former Pakistani Prime Minister Imran Khan is facing a crackdown on his political party, with numerous cases ranging from terrorism to murder charges. Khan acknowledges that his path back to power is narrowing, and he is currently focused on political survival.
China’s Rise to Solar Dominance:
China’s dominance in the solar panel industry has rapidly increased over the years. From producing just one out of ten solar panels globally in 2010, China now produces eight out of ten panels. In 2023 alone, China is expected to install more new solar capacity than the entire capacity installed in the US since the 1970s.
Conclusion:
The state visit between the US and India has resulted in significant deals, demonstrating the strengthening partnership between the two nations to counter China’s influence. However, concerns over Indian democracy and minority treatment persist. Meanwhile, the Indian stock market has experienced substantial growth, reflecting investor confidence. As economic data, elections, and anniversaries approach, the global economy remains dynamic amidst various geopolitical and business developments.
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Good morning. Joe Biden hosted Narendra Modi at the White House for a state visit attended by US and Indian leaders announced deals for defense and technologyincluding a purchase of American spy drones.
After the talks in the Oval Office, Biden told reporters the US-India partnership was “stronger, closer and more dynamic than ever before in history,” while Modi spoke of a “new chapter” in the strategic relationship between the two countries.
Ahead of the visit, US officials said India would commit to purchasing armed MQ-9B SeaGuardian drones, manufactured by US defense contractor General Atomics. Leaders will also announce that memory chipmaker Micron will open a $2.75 billion semiconductor assembly and test facility in India, which will include $800 million of investment from the U.S. company.
Biden and Modi also signed an agreement that will lead to General Electric co-manufacturing fighter jet engines in India.
The deals mark a major push by Washington to draw New Delhi into its orbit as part of a strategy to work with allies and partners to counter China. While India maintains a non-aligned foreign policy, it has drawn closer to the United States amid heightened tensions with Beijing.
However, Biden has come under criticism for allowing Modi a state visit, given critics’ allegations that Indian democracy is under threat and concerns over New Delhi’s treatment of Muslim and Christian minorities.
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Opinion: Biden is taking Indian prime minister flattery to new heights, writes Edward Luce.
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Indian Stock Exchange: The overall value of the Indian stock market has increased by more than 14 percent over the past three months as foreign investors buy into the robust economic growth of the world’s most populous country.
Here’s what I’m keeping an eye on today and over the weekend:
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Economic data: Japan releases May consumer price index (CPI) inflation rate data.
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Elections: Guatemala, Sierra Leone and Greece will hold general elections this weekend.
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Anniversaries: Today is the seventh anniversary of the Brexit referendum. Saturday is the first anniversary of the US Supreme Court’s decision to overturn Roe vs. Wade, the 1973 ruling that upheld abortion rights.
Five more top stories
1. The submarine diving to visit the wreck of the Titanic suffered a “catastrophic implosion”, the United States Coast Guard said, killing the five passengers on board. Rescuers spotted a debris field near the Titanic’s location on Thursday morning, which authorities have now confirmed contained the remains of the submersible, known as the Titan.
2. The Bank of England raised interest rates to 5%, a surprising half point increase, such as the central bank and Prime Minister Rishi Sunak promised to crush persistent inflation.
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Related: The BoE’s interest rate hike was larger than expected just a fleeting push to the pound as investors are betting that aggressive central bank action will likely help push the UK into a recession later this year.
3. Germany signed another long-term deal to import more liquefied natural gas from the US, as Berlin moves to replace Russian energy in its economy during Moscow’s war in Ukraine. Read more about the deal.
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War in Ukraine: The Ukrainian army hit a key bridge linking the Crimean peninsula and southern Kherson province, Moscow-based officials in both Russian-occupied regions said.
4. South Korea exported more goods to the US than China last year for the first time since 2004, underlining changing business models as Washington draws more allies into its supply chains and Beijing increases its manufacturing self-sufficiency. Here are more details on South Korea’s trade data.
5. Deloitte resigned as mayor of Byju’s, India’s most respected start-up, stating that the education technology company had failed to deliver its 2021-22 financial results. Read more about the latest heist for $22 billion digital learning company.
How well did you manage to keep up with the news this week? Take our quiz.
In-depth news
Imran Khan: “Right now it’s a question of survival” © Arif Ali/AFP/Getty Images
Imran Khan is fighting for its political survival after Pakistani authorities launched a crackdown on his party, with the popular former prime minister acknowledging his path back to power is narrowing. The 70-year-old former cricketer, who was released on bail after being arrested last month, is fighting dozens of other cases, from terrorism to murder charges. “Right now it’s a matter of survival,” he told the FT.
We are also reading. . .
Chart of the day
China’s rise to solar dominance it was quick. In 2010, while Europe installed eight out of 10 solar panels in the world, it produced just one. This year, China will produce eight out of ten solar panels produced worldwide and add five to its grid. In 2023 alone, China will install more new solar capacity than the United States has rolled out since Americans bought their first panels in the early 1970s.
Take a break from the news
Shanna Swan has been researching the impact of chemicals on human fertility for decades and thinks she knows it why sperm count worldwide is declining.
Further contributions by Tee Zhuo e Gordon Smith
https://www.ft.com/content/e9d47511-9909-4022-8958-58f7b0dee12e
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