India Regains Investor Interest as Global AI Trade Volatility Shifts Market Focus
India’s equity market is drawing renewed attention from global investors as volatility surrounding the global artificial intelligence (AI) rally prompts a shift toward more stable markets. The NSE Nifty 50 Index has emerged as a relatively resilient performer, experiencing fewer large daily swings than both the MSCI Emerging Markets Index and the S&P 500 in the first half of the year. While India’s limited exposure to AI-related stocks had previously caused it to lag markets such as Taiwan and South Korea, concerns over the sustainability of the AI-driven rally are encouraging investors to reconsider India. In June, the Nifty 50 recorded its strongest outperformance against the MSCI Emerging Markets Index since November, while foreign investor outflows eased to their lowest level in four months.
Investor sentiment has also improved as the Indian rupee stabilizes after reaching a record low and easing Middle East tensions reduce oil prices, relieving pressure on inflation-sensitive sectors such as refining and aviation. A government report released in late June highlighted improving economic growth prospects, while optimism is building ahead of the corporate earnings season beginning with Tata Consultancy Services. For non-Indian companies and global investors, India’s role as a relatively stable market outside the AI-driven investment cycle offers an attractive diversification opportunity, particularly amid heightened uncertainty in technology-heavy global equity markets.
https://www.businesstimes.com.sg/international/investors-seeking-shelter-ai-storm-are-turning-india
Editor’s Note: Global investors are turning to India’s equity market as a stable alternative amid volatility in the AI-driven rally, with the Nifty 50 showing resilience and easing foreign outflows. Improved sentiment from a stronger rupee, lower oil prices, and positive growth prospects ahead of earnings season further enhance India’s appeal as a diversification opportunity.
Indian Toy Market Draws Global Attention as International Industry Sees Strong Growth Potential
India’s toy industry is gaining increasing international attention, with May Liang, Chair of the China Toy & Juvenile Products Association, highlighting the country’s significant market potential during her visit to a toy exhibition in New Delhi. A delegation comprising representatives from China, Taiwan and Hong Kong attended the event to explore collaboration opportunities with Indian manufacturers and industry bodies. Liang said India’s demographic advantage, with more than 20 million children born each year, makes it one of the world’s most promising toy markets. She described her first visit to an Indian toy fair as a positive experience and noted the strong engagement with members of the Indian Toy Association, saying discussions reflected a long-standing relationship between the two sides.
Talks during the exhibition focused on expanding bilateral cooperation, particularly in the ride-on toys segment, where both Indian and international participants expressed strong interest. Liang also noted that India’s toy manufacturing industry has made considerable progress in improving quality standards over recent years, aided by the presence of multinational companies such as Hasbro, whose manufacturing operations have helped raise industry benchmarks. She said these developments have strengthened confidence in India’s manufacturing ecosystem. For non-Indian companies, India’s rapidly expanding consumer market, improving product quality, and growing openness to international partnerships present attractive opportunities for investment, manufacturing, sourcing, technology transfer, and distribution across the toy industry.
Editor’s Note: India’s toy industry is attracting global interest, with Chinese, Taiwanese, and Hong Kong delegates exploring partnerships at a New Delhi exhibition where May Liang, Chair of the Supervisory Board and Spokesperson of China Toy and Juvenile Products Association (CTJPA), emphasized India’s demographic advantage and market potential. Rising quality standards, multinational involvement, and openness to collaboration make India a promising hub for investment, manufacturing, and distribution in the toy sector.
While traditionally non-tech, toys are rapidly evolving into “physical AI devices”—such as interactive IoT toys and smart robots—by integrating sensors, chips, and communication modules. This technology-adopted shift is opening up vital new application fields for the ICT and hardware sectors.
India’s booming toy ecosystem serves as a key market signal. As toys smarten up, the supply chain is reaping major technical dividends. For instance, smart ride-on toys increasingly require microcontrollers (MCUs) and geofencing tech. Additionally, as global giants like Hasbro expand local production in India, demand is surging for voice recognition, smart interaction, and sensor technologies, directly benefiting chip, sensor, and PCBA suppliers.
Despite concerns over India’s fertility rate dipping slightly from 2.0 to 1.9, the nation’s massive base of 20 million annual births ensures a robust demographic dividend until 2050. Driven by both consumer volume and tech integration, India’s smart toy market remains a strategic, high-growth landscape for ICT and semiconductor suppliers.
EVA Air Plans Return to India with New Delhi Service, Expanding US–India Connectivity via Taipei
Taiwan-based EVA Air is planning to return to the Indian market with the launch of flights to New Delhi via its hub at Taipei Taoyuan International Airport, marking its first India service since discontinuing operations to Mumbai. The airline is targeting an early December 2026 launch, subject to regulatory approvals, with the service aimed at meeting increased winter holiday travel demand between North America, India, and other Asian destinations. The new route is expected to establish Taipei as another key transit hub for US–India travel alongside established gateways such as Singapore, Hong Kong, Dubai, Doha, Abu Dhabi, Istanbul, Frankfurt, London, Paris, and Amsterdam. EVA Air’s decision to serve New Delhi is also supported by its codeshare partnership with Air India, whose primary hub at Indira Gandhi International Airport provides onward connectivity across India and a growing network of destinations in Asia.
The planned India expansion follows EVA Air’s continued growth in the United States, including the launch of Washington Dulles as its tenth US destination after adding Dallas in 2025. The airline’s US network also includes New York, Chicago, Seattle, Houston, Los Angeles, and San Francisco, with additional domestic connectivity provided through its interline partnership with Southwest Airlines. EVA Air expects the New Delhi service to strengthen travel options for the Indian diaspora in North America while enhancing connectivity between India, Taiwan, and the wider Asia-Pacific region. For non-Indian companies, the new route could improve business mobility, tourism, and cargo connectivity, while creating opportunities for greater commercial engagement between India, Taiwan, and North America through a more diversified and efficient international air transport network.
https://www.indianeagle.com/travelbeats/eva-air-to-launch-new-delhi-flights-from-usa-via-taipei
Editor’s Note: EVA Air plans to relaunch India services in December 2026 with flights to New Delhi via Taipei, strengthening US–India travel options and leveraging its codeshare with Air India for wider connectivity. The expansion builds on EVA’s growing US network and is expected to boost diaspora travel, business mobility, tourism, and cargo links between India, Taiwan, and North America.
Japan and India to Boost Cooperation on Semiconductors and Critical Supply Chains
Japan and India are expected to significantly deepen their strategic partnership as Japanese Prime Minister Sanae Takaichi and Indian Prime Minister Narendra Modi hold summit talks in New Delhi aimed at expanding cooperation in semiconductors, critical minerals, and broader economic security. The leaders are also expected to strengthen collaboration on stable energy procurement, maritime security, and defence equipment, reflecting a shared commitment to enhancing supply chain resilience and regional stability. According to Japanese government officials, the two sides are expected to issue multiple outcome documents following the meeting, outlining new initiatives across these priority sectors. The discussions come at a time when disruptions to global oil supplies, triggered by the U.S.-Israeli conflict with Iran, have reinforced the importance of secure energy and critical technology supply chains.
The summit also highlights Japan’s strategic focus on India as a key partner in advancing a free and open Indo-Pacific and reducing dependence on concentrated supply chains amid growing geopolitical uncertainty. The meeting takes place against the backdrop of deteriorating Japan–China relations, including tighter Chinese restrictions on exports of dual-use products and essential rare earth materials to Japan, while India continues to balance its long-standing border dispute with China alongside strong economic engagement. Prime Minister Takaichi’s three-day visit, her first to India since assuming office in October, follows the two countries’ practice of reciprocal leader-level visits and underscores the expanding scope of bilateral cooperation. For non-Indian companies, closer Japan–India collaboration is expected to create opportunities across semiconductor manufacturing, electronics, critical minerals processing, clean energy, advanced manufacturing, logistics, and defence supply chains, while supporting efforts by global businesses to diversify production networks and strengthen supply chain resilience in the Indo-Pacific region.
Editor’s Note: Japan and India are set to deepen their strategic partnership, with leaders focusing on semiconductors, critical minerals, energy security, and defence cooperation to strengthen supply chains and regional stability. The summit underscores Japan’s pivot toward India amid strained ties with China, creating new opportunities for global businesses in advanced manufacturing, clean energy, and diversified Indo-Pacific supply chains.
Microsoft Consortium to Build India–SEA Submarine Cable for AI and Cloud
A consortium comprising Microsoft, telecom infrastructure provider Lightstorm, Tata Communications, Singapore Telecommunications, ASEAN Cableship, and Japan’s NEC Corp. has announced plans to develop a new undersea cable connecting India with Malaysia and Singapore, strengthening digital connectivity across the region. Named I-2SEA, the 3,600-kilometre submarine cable will support growing demand for artificial intelligence (AI), cloud computing, and hyperscale data workloads. The network will include a landing station at Machilipatnam in Andhra Pradesh, a location that is also attracting major data centre investments from global technology companies. According to Lightstorm Group CEO and Managing Director Amajit Gupta, the cable is expected to become operational in the fourth quarter of 2029 and will expand the company’s AI and cloud connectivity network in India from 19 to 29 interconnected zones.
The project reflects India’s rapidly expanding digital infrastructure as demand for AI services, cloud computing, and data centres continues to accelerate. Lightstorm is also preparing for a potential public listing in India in mid-2027, underscoring growing investor interest in the country’s digital infrastructure sector. With submarine cables carrying around 95% of global internet traffic, the new network is expected to enhance international data capacity and improve connectivity between India and Southeast Asia. For non-Indian companies, the project offers stronger digital infrastructure to support cloud services, AI deployment, hyperscale data centres, financial services, content delivery, and cross-border digital operations, while creating new opportunities for technology providers, telecom operators, infrastructure investors, and enterprises seeking to expand across the Indo-Pacific region.
Editor’s Note: A consortium including Microsoft, Tata Communications, Lightstorm, Singtel, ASEAN Cableship, and NEC is building the 3,600-km I-2SEA undersea cable to link India with Malaysia and Singapore, boosting AI, cloud, and hyperscale data connectivity. Set to go live in late 2029, the project will enhance India’s digital infrastructure and create opportunities for global firms in cloud services, data centres, and cross-border digital operations.
Indian Electronics Firms Partner with Taiwan, Japan, and South Korea to Secure Supply Chains
Indian electronics manufacturers are increasingly partnering with companies from Taiwan, Japan and South Korea as they diversify technology collaborations and reduce reliance on China amid prolonged regulatory approvals for India–China corporate alliances. The shift supports the Indian government’s strategy of strengthening domestic electronics manufacturing and expanding global technology partnerships beyond China. Over the past four to five months, companies including Dixon Technologies, Amber Enterprises, PG Electroplast, Epack Durable and Syrma SGS Technology have signed or operationalised at least eight partnerships covering the production of electronic components and finished products for both domestic and international markets. These collaborations span laptops, servers, desktops, telecom equipment, printed circuit boards and smart audio devices, reflecting India’s growing ambition to become a global electronics manufacturing hub.
Among the major developments, Dixon Technologies is preparing to operationalise a joint venture with Taiwan’s Inventec Corp to manufacture laptops, servers, desktops and related components, while also forming a joint venture with Taiwan’s Gemtek Technology to produce telecom products such as optical transceivers. Syrma SGS Technology has partnered with Japan’s Kaga Electronics to establish an electronics manufacturing facility serving Japanese customers, Epack Durable is advancing a joint venture with South Korea’s Bumjin Electronics for smart audio devices, and Amber Enterprises has begun construction of a printed circuit board manufacturing plant in collaboration with South Korea’s Korea Circuit Co. Industry executives note that while China continues to retain advantages in technology and manufacturing costs, Indian companies are increasingly pursuing diversified partnerships to improve supply chain resilience and reduce geopolitical risks. For non-Indian companies, the trend highlights expanding opportunities to collaborate with Indian manufacturers in electronics, components, telecommunications equipment, industrial technology and advanced manufacturing, as India continues to position itself as an alternative global production and export base.
Editor’s Note: Indian electronics manufacturers are forging new partnerships with firms from Taiwan, Japan, and South Korea to diversify supply chains and reduce reliance on China, aligning with government efforts to boost domestic production. Recent joint ventures across laptops, telecom equipment, PCBs, and smart audio devices highlight India’s ambition to become a global electronics hub, offering expanded collaboration opportunities for international companies.