AGP Executive Report

Seafood & Exports: India’s seafood push got a boost as Andhra Pradesh CM N Chandrababu Naidu said India has only 5% of global seafood share but “immense opportunities,” citing Andhra’s 28% of fish production and 66% of shrimp output, and urging quality, sustainability and traceability to scale exports. Flex-fuel Rollout: India began commercial E85 rollout for flex-fuel vehicles, with ethanol blending already at 20% and the new fuel designed for E20–E100 use. Auto Demand: India’s passenger vehicle market hit nearly 4.4 lakh units in May, up 23% year-on-year, led by Made-in-India brands. Digital Infrastructure: AirTrunk plans to invest about Rs 3 lakh crore to build 5 GW of data centre capacity in India, betting on cloud and AI growth. Retail & Consumer Trends: Japan’s Don Quijote launched clothing with built-in fans for hot-weather shopping, while China’s “tongjin” anime-themed gold accessories keep drawing fans (and licensing questions). Market Access & Finance: NSE crossed 26 crore unique trading accounts, reflecting retail investing momentum. Energy Security: Woodfield Systems shipped India’s first domestically made LNG marine loading arm, targeting reduced reliance on imported LNG handling equipment.

Flex-fuel push in India: India launched E85 (80–85% ethanol) for flex-fuel vehicles, starting at select pumps and targeting 500 outlets by Dec 2026 and ~5,000 by Dec 2027, aiming to lift ethanol blending toward ~26% by 2030-31. Premium EV ride-hailing expands: Vietnam’s Green SM (Vingroup-backed) launched an all-electric taxi service in Delhi-NCR and plans to roll out to other Indian metros in phases. India growth stays resilient: India’s Q4 GDP grew 7.8% and FY26 growth hit 7.7%, even as the U.S.-Iran war adds uncertainty; the RBI also trimmed its FY27 growth forecast to 6.6%. Japan consumer relief: Japan passed a 3.1 trillion yen ($19bn) extra budget to cushion households from Middle East-driven fuel and utility costs. China-US ag trade watch: USDA deputy secretary said China is likely to honor U.S. soybean purchase commitments, with broader optimism for other U.S. farm exports. China-ASEAN connectivity: China’s premier pledged deeper China–Laos cooperation, including trade, the railway and the economic corridor, plus AI and the digital economy. Retail & consumer tech: Instagram Reels is reported to drive product discovery and influence purchases in India, while CooperVision pushes myopia control as standard care across Asia-Pacific.

Energy & Utilities: HiTHIUM unveiled an 8-hour long-duration energy storage system at SNEC 2026, pitching longer battery runtimes as key to integrating more renewables and stabilising grids. Clean Power M&A: Inox Clean Energy agreed to buy Vena Energy’s 6 GW India renewables portfolio (1.2 GW operating, 1.8 GW near-commissioning, 3 GW development), lifting its operating/near-operational base to ~4 GW and expanding its pipeline beyond 12 GW. Retail & Consumer Tech (India): Xiaomi launched the 17T in India with Leica-tuned cameras and a 6,500mAh battery; Motorola followed with the Edge 70 Pro+ featuring a 6,500mAh battery and IP68/IP69 durability. Smartphones & Leadership: Infinix India reportedly lost its CEO as shipments slow and internal restructuring hits its launch cadence. Payments & Policy (India): The RBI held rates at 5.25% and raised its FY27 inflation forecast to 5.1%, citing West Asia-driven energy shocks and rupee pressure. Trade & Tariffs: The US said it will uphold tariff caps in deals with the EU and Japan, while analysts warn new forced-labour tariff threats are meant to pressure India trade talks. Japan Consumer Goods: Yamada and Edion agreed to merge under a holding company to build scale against e-commerce competition. Food & Retail (Japan): Lawson is running a “Super Happy!” challenge with upsized onigiri, sandwiches and cake, plus extreme “too sour” and “too sweet” drinks. Pacific Energy Costs: Fuel prices keep climbing in the Pacific, with Samoa moving to an “amber alert” and preparing power shedding as diesel caps bite. Energy Transition (India Mobility): India is set to launch E85 flex-fuel to speed adoption of ethanol-powered vehicles.

Payments & Consumer Trust: A viral Bangkok clip claims a Chinese noodle shop refused Thai baht and pushed customers to pay in renminbi, reigniting scrutiny of foreign-run businesses and local QR/payment practices. India–Venezuela Energy Deal: India’s PM Modi met Venezuela’s interim President Delcy Rodriguez to expand cooperation beyond oil into critical minerals, tech, agriculture and health, as India diversifies crude supplies amid West Asia disruption. China Auto Growth Model: China’s automakers show growth increasingly driven by overseas sales and new-energy mix, with Chery highlighting sharp export momentum. Gold Market & Consumer Impact: India’s gold ETFs saw their first net monthly outflow in a year as investors booked profits after higher import duties lifted prices. Brunei Consumer Trade Push: Brunei’s CFTE33 consumer fair and trade expo returns June 24–28 with local MSMEs plus Thailand and a major India presence. India Retail & Health Pressure: India faces a two-week shortage of key platinum chemotherapy drugs (cisplatin/carboplatin), with doctors blaming higher raw-material costs and price controls. Beauty Retail Expansion: Nykaa partners with Rare Beauty to expand the brand’s availability across India via its site and 30 stores. Car Fuel Innovation: Maruti Suzuki launched India’s first flex-fuel Wagon R (E20–E100), aiming to cut crude imports and support ethanol demand. Trade Policy Shock: The US says it will respect tariff caps in deals but is moving ahead with forced-labour-linked tariffs, while China rejects the premise. China–ASEAN Connectivity: China’s Pinglu Canal reached full-channel connectivity, a move framed as a new driver for China–ASEAN cooperation.

Consumer Protection Crackdown (India): India’s consumer watchdog fined PhysicsWallah ₹5 lakh and McAfee ₹1 lakh for dark patterns, including pre-selected donations without clear consent and “free” course access that required unnecessary personal data. FMCG Outlook (India): HUL’s Nitin Paranjpe said the company is staying confident on long-term growth, leaning on premiumisation, digital-first brands, and data-led operations despite near-term headwinds. Public Digital Infrastructure (India): A fresh DoT circular highlights PM-WANI’s scale—nearly 3.9 lakh hotspots and 2.45 crore users—using a decentralised model that lets small businesses run public Wi-Fi without licences or registrations. Retail & Payments (Japan/Thailand): Japan’s Yamada and Edion plan a merger to form a larger consumer electronics chain, while a Bangkok viral case alleges a Chinese restaurant refused baht and pushed renminbi payments, reigniting scrutiny of foreign-run payment practices. Connected Consumer Tech (Asia): Kenwood launched a new hi-fi range built on Frontier’s AURIA connected-audio platform, targeting premium mass-market buyers. Energy Transition Hardware (China/India): China’s copper demand is surging with AI servers and EVs, and India-focused Citi coverage lifted GE Vernova T&D India and Hitachi Energy India on expectations of a major transmission-and-distribution investment cycle. Auto Supply Shifts (UK/China): Nissan is exploring using spare Sunderland capacity to produce Chery vehicles, a sign of how Chinese brands are reshaping UK manufacturing. Smartphone Market (India): HMD’s Vibe 2 5G sold out in under an hour on Flipkart, reinforcing demand for big-battery, budget 5G devices. M&A Readiness (Asia): match.asia launched “Exit HealthCheck” to help SMEs avoid common deal-stoppers like valuation gaps and due-diligence shortfalls.

E-commerce Oversight: UK MPs heard warnings that potentially harmful gel nail polish and skin-lighteners imported from China are being sold on major online marketplaces, with regulators urging shoppers to check for a UK name/address on labels. Retail Expansion: Skechers India tapped Brandman Retail as an authorized reseller across Amazon, Flipkart, Myntra and others, aiming for 30%–40% growth in 12–18 months while pushing Tier-2/3 markets and new stores. Consumer Protection: India’s CCPA fined PhysicsWallah and McAfee India for “dark patterns,” including donation “basket sneaking” and fear-based subscription renewal prompts. Trade & Tariffs: The US proposed a 12.5% forced-labour tariff on Japan, China and others, while India said it remains engaged with the US on Section 301 talks. Food & Dairy: India-Oman CEPA took effect, giving duty-free access to a wide range of Indian food exports; meanwhile, ghee demand is rising on health-led premiumization. Mobility & Energy: Hero launched India’s first flex-fuel 100cc motorcycles (E20–E85), and Trane said its in-house service team is a key growth driver as buildings’ energy efficiency becomes a selling point. Sportswear Deal: NBA star Stephen Curry signed a long-term shoe/apparel deal with China’s Li-Ning. Defense Drones: India is set for over $2bn in additional domestic drone buys as conflicts boost low-cost UAV demand.

US Forced-Labour Tariffs: The USTR has proposed extra duties under Section 301 on imports from 60 economies, including India, with rates of 10% or 12.5% depending on the country’s enforcement status—raising new cost and sourcing questions for consumer supply chains. Japan Aquaculture: Japan says it has achieved commercial sales of fully farmed eels (“unagi”), aiming to cut reliance on wild-caught eel juveniles and stabilize a culturally important seafood category. India Inflation Watch: ICICI Global Markets projects India’s retail inflation could rise to 5% in FY27, led by food and energy, while core inflation stays near 4.5%—a key input for pricing across FMCG and retail. Japan Energy Relief: Japan’s cabinet approved a 3.11tn yen supplementary budget to cushion households from higher energy costs tied to the Middle East conflict. India-Oman CEPA: The India–Oman trade pact took effect June 1, with analysts pointing to stronger energy security and more resilient trade corridors. India Dairy Pricing: Mother Dairy says it has no intention to hike retail milk prices further, citing comfortable supply and fodder availability. EV Supply Chain Reality Check (India): Coverage highlights that EV growth is now constrained by imported lithium-ion batteries, shifting the focus from sales incentives to battery supply resilience. Retail/Brand Moves: General Mills is selling its Häagen-Dazs shops in China to a local investor group, signaling continued brand portfolio reshuffling in the market. Travel + Sustainability: Japan’s Coral eSIM links travel data to coral reef restoration, donating 1 yen per 1GB used abroad.

China NEV Sales Surge: May 2026 new-energy passenger vehicle sales hit a record pace, with CPCA projecting ~950,000 units and ~62.5% penetration; Leapmotor led with 81,569 deliveries (+81% YoY), while NIO and other startups clustered in the 30,000–35,000 range. Japan Regional Banks Reposition: Japan’s regional lenders are pulling back from China and shifting toward Southeast Asia and India as costs rise and local manufacturing demand softens. Unilever India Premium Push: Unilever CEO Fernando Fernandez says the company won’t “miss the Indian party,” targeting premiumisation and faster growth in India’s home and personal care categories. General Mills Häagen-Dazs Exit (China): General Mills agreed to sell its mainland China Häagen-Dazs shop business to a Ningji-led investor group, keeping retail/foodservice outside the divested shop unit. Tencent WeChat AI Agent: Tencent shares jumped after a report that it’s testing an AI agent for WeChat, with a potential phased public rollout. Curry x Li-Ning Deal: Stephen Curry signed a long-term shoe and apparel partnership with Chinese sportswear giant Li-Ning, expanding Curry Brand globally. Vietnam E10 Rollout: Vietnam moved ahead with nationwide E10 biofuel petrol from 1 June, stressing stable supply, fuel quality, and consumer protection. China Agriculture Plan: Beijing issued a 2026–30 blueprint to accelerate agricultural and rural modernization, including targets for grain capacity and product quality checks.

Sportswear & Celebrity Commerce: Stephen Curry ends sneaker free agency with a 10-year endorsement deal with China’s Li-Ning, expanding Curry Brand into golf, athleisure and lifestyle, with plans for stores in the US and China. China Consumer Services: China’s “companionship economy” is growing fast, with paid “climbing buddies” and social partners turning loneliness and gig work into bookable experiences worth about $7.4bn in 2025. Southeast Asia Travel Retail: Vinpearl signs MoUs with CAITO and Klook to boost resort, golf and MICE distribution for Filipino travelers across Southeast Asia. India Macro for Shoppers: India’s CPI inflation is projected to rise to 4.8% in FY27 if crude averages $90/bbl, with West Asia risks feeding into energy costs. Beverages & Capital Markets: Coca-Cola explores an IPO in India for Hindustan Coca-Cola Beverages, its main bottler, targeting a 2027 listing and potential partial stake sale. China Retail Brand Reshuffle: General Mills agrees to sell its mainland China Haagen-Dazs shops to a group including Ningji, signaling continued Western brand readjustments in China. ASEAN Digital Trade: ASEAN DEFA negotiations conclude, setting common rules for cross-border data, digital payments and online consumer protection. Japan Supply Shock: Japan faces a banana shortage risk as Middle East-linked fuel and ethylene constraints disrupt ripening logistics. AI Infrastructure for Enterprises: ai& and Plug and Play Japan team up to help firms deploy AI using Japan-based sovereign infrastructure. Robotics Education Trend: China’s humanoid robot study tours are spreading, turning youth learning into hands-on exposure at training centers and robotics hubs.

Food & Agriculture: India raised onion procurement prices by 24.4% to Rs 15.80/kg under its buffer stock plan, while pulse stocks hit a record 43 lakh tonnes to protect farmers and steady retail prices. Seafood Exports: India’s seafood exports hit a record 19.72 lakh tonnes worth Rs 73,890 crore ($8.46bn), led by frozen shrimp; the Vizag port emerged as the top gateway. Retail & Consumer Services: MR.DIY opened its 1,000th Philippines store and debuted an “elevated” format with brighter layouts and category zoning. Cross-border Trade: India launched CEPA with Oman via a $1.8m shipment, giving duty perks across gems, marine products, engineering goods and cables. Tech & Consumer Electronics: Steam Deck prices jumped sharply across Asia, with shortages and component costs blamed. Automotive Demand Shift: China’s EV transition is accelerating as rising fuel costs push buyers away from gasoline cars, even as overall sales stay pressured. Safety & Enforcement: A China mine blast exposed “black” mining practices, including unregistered workers and missing location tracking devices. Fintech & Payments: Waymo began limited free rides of its Zeekr-made Ojai robotaxi in major US cities, aiming to cut operating costs.

Trade & Tariffs: India-Oman CEPA kicks in June 1, giving Indian exporters duty-free access to 98.08% of Oman’s tariff lines (99.38% of export value), with immediate wins for textiles, agri and processed foods, marine products, gems & jewellery, and more. US Tech Controls: The US clarified its AI chip export ban applies to Chinese firms’ overseas subsidiaries/affiliates, tightening enforcement as Washington closes loopholes. US-India Talks: Brendan Lynch and Darpan Jain begin four-day trade talks in New Delhi to finalise an interim pact and push the broader bilateral trade framework. Asia Supply Chains: Reuters reports Asia’s factory activity expanded in May as firms stockpiled buffers amid Middle East war risk, with China’s private PMI rising for a sixth month. India Manufacturing: India’s May manufacturing PMI hit a three-month high on strong domestic demand and new orders, even as input costs stayed elevated. Consumer & Retail: Japan’s price hikes loom for 1,000+ food and beverage items in June, while Japan’s air-conditioner rush intensifies ahead of stricter standards next April. Healthcare Innovation: KIHT in India received CRO approval, boosting capacity for regulated clinical research for pharma and medical devices. Power Subsidies: Pakistan’s energy minister denied any plan to end electricity subsidies for protected consumers, citing continued QR-code registration. Logistics: TCI expands India’s coastal shipping fleet with new vessels to lift capacity and cut freight costs. Food & Brand Funding: Clean-label D2C brand Anveshan raised Rs 150 crore to expand manufacturing and product lines. Fintech: Coinbase launched direct INR deposits/withdrawals in India via IMPS, enabling spot trading and futures with local order books.

E-commerce Consumer Safety: Israel’s VAT-free import push is supercharging online buying, but shoppers are warned to watch for foreign marketplaces and unverified products as platforms struggle to police quality. Tourism & Beauty Spend: A survey finds over 40% of Western and Australian tourists use beauty services in Japan, praising hygiene and Japanese techniques—haircuts lead demand. Viral Supplements Watch: SlimTide’s weight-loss hype is drawing scrutiny over ingredient transparency, exaggerated claims, and a growing counterfeit supply chain. Energy Subsidies & Bills: Pakistan’s power minister says “protected” electricity subsidies won’t be withdrawn, while subsidy coverage and savings figures are updated amid reform talk. Digital Money Push: China is expanding digital yuan (e-CNY) use via incentives for banks, including more trade and public spending pilots. Regional Digital Trade: ASEAN officials say negotiations are done for the Asean Digital Economy Framework Agreement, aiming to make digital trade safer and easier for businesses and consumers. Food & Pharma Compliance: US FDA flags serious manufacturing and data integrity lapses at Dabur India’s plant, raising contamination and record-keeping concerns. Trade That Hits Shelves: India-Oman CEPA rules of origin and duty concessions kick in June 1, with zero-duty access for many labour-intensive exports. Power Prices Volatility: India’s power exchanges show near-zero daytime spot prices and night spikes, adding pressure to how consumers and businesses plan costs. Auto Recall: Mercedes-Benz recalls 99 G-Class Electric units in India over possible wheel-bolt issues.

ASEAN Digital Economy: Negotiations on the ASEAN Digital Economy Framework Agreement (DEFA) are now concluded, with signing expected in November and a target of a single, rules-based digital market for data flows, payments, cybersecurity, e-commerce and digital identity. Retail Expansion (India): Baazar Style Retail opened three new stores in Uttar Pradesh, lifting its count to 276 and doubling down on value fashion in emerging markets. Consumer Tech & Legal (China): A Beijing court held the first hearing in a Tesla “Full Self-Driving” fraud case, with 10 owners seeking refunds and triple damages over marketing promises. Fashion Performance (India): Zara’s India business (Inditex/Trent JV) posted its weakest results since the pandemic, with FY26 profit down 32% to Rs 204 crore as competition intensifies. Food & Safety (India): Authorities seized methanol-laced illicit liquor in Pune and Pimpri-Chinchwad, after a toxic liquor network linked to deaths rose to 19. Energy & Inflation Watch (India): India’s finance ministry flagged that Strait of Hormuz disruption duration is the key driver for external and retail inflation risks, with fuel-price pass-through likely. Agrifood Trade (China-Africa): China will allow eligible coffee beans from all 53 African countries with diplomatic ties starting July 20, using unified phytosanitary rules. Green Tech (India): India’s energy investment outlook highlights solar and refining as major drivers, with renewables and nuclear gaining share in power investment.

Energy Security & LPG Reserves: India has ordered IOC, BPCL and HPCL to build 30-day LPG reserves as West Asia tensions disrupt supply chains, with officials stressing household cooking gas stability. Fuel Shock & Consumer Impact: The government says OMCs are acting as “shock absorbers” to cushion consumers from fuel price rises, even as the West Asia crisis strains costs. China Payments Push: China’s central bank is expanding digital yuan use via incentives for banks, from lottery draws to green electricity charges and cross-border Belt and Road transactions. Retail & Consumer Tech: OnePlus has hiked prices for its Nord CE6 series in India shortly after launch, citing component and memory cost pressures. Mobile Commerce Enablement: Amwhiz launched an all-in-one Shopify service suite for Indian ecommerce brands, including development, themes, POS and WhatsApp API integration. Gold Watch: India’s 24K gold is reported around ₹15,765/g with silver also climbing, as investors keep precious metals in focus. Semiconductors for India: NITI Aayog urges India to accelerate a domestic chip ecosystem, warning current local capacity covers only a small share of demand. Japan Supply Disruption: Japan’s naphtha output fell 22.8% in April amid Middle East-linked disruptions, with chemical makers drawing down inventories while procurement risk rises.

EU Consumer Safety Crackdown: The European Commission fined Chinese marketplace Temu €200m (about $232m) under the Digital Services Act for selling illegal and dangerous products, including toxic toys and non-compliant electronics, and for risky promotion practices. India Trade & Solar Policy: India blocked China’s first WTO request over solar Production Linked Incentive (PLI) support and higher duties on tech goods like smartphones, semiconductors and display equipment—China can renew the bid at the next DSB meeting. Philippines–Japan Digital Push: Ayala Group and Japanese firms signed MOUs during Marcos Jr.’s Japan visit to study “Intelligent City” services in Makati and expand digital platforms, fintech and financial inclusion. India Consumer Protection Focus: RBI flagged FY27 priorities around customer protection (stronger KYC, video ID for NRIs) and a tighter credit ecosystem. India Weather Risk for Food Prices: Reuters reports India expects an El Nino-weakened monsoon with the lowest rainfall in 11 years, raising crop and food-inflation concerns. Retail & Tech Deals: Google Pixel 10 Pro discounts go live in India, while Realme teased the P4R 5G with a Dimensity 7400 and an AI-focused secondary chip. Energy Transition for Businesses: Mahanagar Gas and Fourth Partner Energy will explore renewable generation and supply for commercial and industrial customers. Cyber Fraud Alarm: A report highlights India’s cyber scams are rising fast, with millions of helpline calls and far fewer formal FIRs.

Energy Security: The Philippines is setting up its first systematic strategic petroleum reserve under POWERR Asia, aiming to build new oil stockpiling facilities and cut reliance on unhedged spot imports, with Japan technical support. Consumer Tech & Payments: Tencent and PayPal are linking up via a cross-border QR gateway so U.S. PayPal users can pay like locals in China. Robotics Regulation: China rolls out a national “digital ID” for humanoid robots, giving each unit a 29-digit traceable identity across its lifecycle. Pharma Dealmaking: Innovent Biologics signs a deal with Pfizer worth up to US$10.5bn for 12 cancer drug programmes, with Innovent leading early trials and keeping China rights. Retail & Real Estate: Sun Group teams with Thailand’s Central Pattana to develop premium retail and mixed-use complexes in Vietnam. Food Trade: Binggrae will return to THAIFEX–ANUGA ASIA 2026 to push Southeast Asia distribution for its dairy and ice cream brands. EU Consumer Safety Crackdown: The EU fines Temu €200m over illegal and unsafe products, including baby toys and faulty chargers. Japan Household Impact: Japan flags a June wave of food and beverage price hikes affecting 1,078 items as Middle East-linked costs feed through. Auto & Mobility: Tata AutoComp and Jahwa Electronics form a JV in India to make EV thermal management PTC heaters. China EV Tech: BYD unveils its Xuanji A3 self-driving chip, positioning it as a power-efficiency leap for smarter driving. India Consumer Disruption: Japan suspends fresh mango imports from India over fumigation/disinfection procedure concerns, threatening exporter and farmer revenue during peak season.