India's Manufacturing Soars in 2025 as China's Economy Stumbles

• India's manufacturing sector gained significant momentum in 2025, driven by policy incentives and global supply chains, with IIP growing 3.5% in July.
• India surpassed Japan as the 4th largest economy and is set to overtake Germany, becoming the 3rd largest globally.
• China's economy faced a prolonged slowdown in 2025 due to weak demand, trade tensions, a real estate crisis, and declining PMI for eight consecutive months.
• US tariffs and diplomatic conflicts with US, Taiwan, and Japan exacerbated China's economic challenges.
• India-China relations remained strained, highlighted by China's halt of critical rare earth metal supply, impacting India's EV plans.

Why It Matters: India's manufacturing surged in 2025, positioning it as a global economic power amid China's slowdown.