Handpicked updates about India’s business and the business of India
In incredibly random but fascinating news of the day - French President Emmanuel Macron and his wife Brigitte plan to present "photographic and scientific evidence" to prove that the first lady is not a transgender woman. The evidence is part of their defamation suit against the US right-wing influencer Candace Owens after she promoted her belief that Brigitte Macron was born male and had "groomed" a teenage Macron before transitioning to female. The world is a unique place friends.
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 6 mins.
Markets 🔔🐂🐻
As of the Indian market closed on Sept 18th
The Indian stock market rose for a third consecutive day on Thursday, supported by the US Federal Reserve's 25-basis-point rate cut. Pharma and IT stocks led the gains, while some auto and financial stocks declined.
Geopolitics & Defence
Saudi-Pakistan Defence Pact Shakes Up South Asia
Image credits: Mint
Pakistan & Saudi Arabia Deal Big: When Pakistan’s Prime Minister Shehbaz Sharif landed in Riyadh to ink a new Strategic Mutual Defence Agreement with Saudi Arabia, it was more than just another handshake in the Gulf. The pact, which essentially declares that “aggression against one will be treated as aggression against both,” has raised eyebrows across South Asia, especially in New Delhi.
A Historic Partnership Reinforced: Saudi Arabia and Pakistan have long shared close ties, rooted in religion, politics, and strategic interests. Saudi has often extended financial lifelines to Pakistan during economic crises, and Pakistan’s military has historically trained Saudi forces. This marks the first formal, legally binding mutual defence pact between Pakistan and Saudi Arabia, establishing a joint deterrence framework.
India Watches With Caution: India has said it will “study the implications” of the pact, which analysts warn could pull Saudi Arabia into future India–Pakistan tensions and complicate South Asia’s security balance by raising the stakes for regional security. The timing is also important. While India has worked in recent years to build deeper ties with Riyadh—across energy, infrastructure, and defence—this agreement injects new uncertainty into the relationship and the broader regional equation.
Business & Technology
Tata Delivers iPhone Surge from India to the World
Image credits: Business Standard
Tata’s Rise: As global pressures and tariffs make dependence on China risky, Tata Electronics has become central to Apple’s shift of iPhone production to India. By FY25, Tata’s plants are expected to produce nearly half of India’s iPhones, including all iPhone 17 models. Consolidated operating income surged from about ₹3,752 crore in the previous year to ₹66,206 crore in FY25. Overall, five factories—run by Tata, Foxconn, and Tata Pegatron—now assemble 20% of global iPhones, supplying almost half of those sold in the US. To avoid new US tariffs on China, Apple even airlifted 1.5 million Indian-made iPhones to America this year, with Q1 2025 exports reaching $6 billion, up 82% year-on-year.
Why The Shift: Several global and corporate trends explain why Tata got this opportunity:
Apple is under pressure to reduce its dependence on Chinese manufacturing, especially for the US market. Trade tensions, tariff policies (including those from the Trump era), and supply chain vulnerabilities during the pandemic have nudged Apple in this direction.
Indian policy and investment climate have become more favorable for large-scale electronics manufacturing. Tata’s acquisitions and control over major facilities are part of a broader “Make in India” momentum.
Exports are growing rapidly. In just the first four months from April 2025, iPhone exports from India hit US$7.5 billion—a sharp acceleration over previous years.
Challenges Ahead: Even with this strong momentum, hurdles remain—maintaining consistent quality and meeting Apple’s tight standards at scale, keeping costs competitive amid rising labor, raw material, and logistical expenses in India, and ensuring infrastructure, power, and policy support remain stable and investor-friendly.
Business India: Dhanda Hai Yeh!
Image credits: East Asia Forum
JSW-MG Motor Joint Venture: China's SAIC Motor is reportedly slashing its 49% stake and freezing new investments in its joint venture with the JSW Group, a decision driven by India's 2020 curbs on Chinese investments and valuation disputes with JSW. JSW, which is seeking a majority stake, is also in talks with a rival Chinese firm, Chery, for a technology partnership. Despite selling 61,000 cars in 2024 and being India's number two EV maker, the joint venture remains loss-making.
India Part of EU Diversification Strategy: European Commission President Ursula von der Leyen has stated that the EU must pursue trade deals with nations like India to reduce its reliance on the United States amid rising US tariffs. The EU aims to finalise a trade deal with India this year, with Prime Minister Narendra Modi confirming his commitment to the pact. The EU is also in trade talks with South Africa, Malaysia, and the UAE as part of this strategy.
Foldable iPhones For India: Apple is significantly ramping up its manufacturing push in India. The company reportedly plans to manufacture its first foldable iPhones in India after testing in Taiwan. More notably, it is set to produce all iPhone 17 models, including the premium Pro versions, in India for the first time. This major shift aims to reduce Apple's reliance on China and deepen its manufacturing footprint in India.
India's Millionaire Surge: According to the Mercedes-Benz Hurun India Wealth Report 2025, India's millionaire households have surged by 90% in four years, reaching 8.71 lakh in 2025 from 4.58 lakh in 2021. The report, which found that these households now represent 0.31% of all households, forecasts the number to grow to 17–20 lakh within the next decade. Maharashtra leads with 1.78 lakh millionaire households, followed by Delhi (79,800) and Tamil Nadu (72,600).
Used Car Company IPOs: Indian used-car vendors, including CARS24, CarDekho, and Spinny, are preparing for IPOs to raise over $1 billion collectively. Chasing profitability by cutting costs, these firms are capitalising on India's strong IPO market. This trend is further supported by CarTrade, the only publicly traded company in the sector, whose stock has surged 63% this year.
Air India Crash Victims’ Families Sue Boeing: Families of four victims of the Air India Flight AI171 crash on June 12 have sued Boeing and Honeywell in a US court. The lawsuit alleges that faulty cockpit fuel switches, manufactured by Honeywell and installed by Boeing, caused the deadly crash that killed 260 people. The suit claims the switches were prone to accidental activation, leading to a loss of engine thrust.
SEBI Gives Clean Chit To Adani: India's market regulator, SEBI, has dismissed allegations of stock manipulation against the Adani group made by short-seller Hindenburg Research. The regulator concluded there was no wrongdoing, stating that a ₹620 crore transaction was not a "related party transaction" under the regulations. As a result, SEBI has closed the proceedings against the Adani companies and their executives.
World 🌏
Fed’s First Rate Cut In Months But Caution Lingers
Image credits: India Today
A Measured Move From The Fed: The U.S. Federal Reserve cut interest rates by 25 basis points, lowering its target policy rate to 4.00–4.25%. It’s the first rate reduction since December. While markets had hoped for a more decisive pivot toward easier monetary policy, the Fed emphasized that this move is only one part of a cautious, data-dependent path forward.
Inflation and Labor Market Still Keeping Things Uneasy: Despite the rate cut, the Fed’s remarks were laced with warnings. Inflation remains “sticky”, particularly in the housing and food sectors, and is projected to end the year around 3%, well above its 2% target. On the jobs front, the labour market is showing signs of cooling. Unemployment rose to 4.3% in August, and payroll growth was less than expected. Past jobs data were also revised downward, suggesting earlier estimates of strength might have overstated things. But while the labor market softens, the Fed sees risks to employment on the downside indicating concern that cutting too fast might hurt workers.
Markets React, More Caution Than Cheers: Investors expecting a strong dovish signal were somewhat underwhelmed. Key indices like the Nasdaq and S&P 500 slipped in choppy trading after the announcement, rather than rallying. Bond markets also showed mixed signals: Treasury yields rose for both short-term (two-year) and longer-term (10-year) maturities, as traders absorbed the uncertainty embedded in the Fed’s message. The updated economic projections (the “dot plot”) suggest multiple rate cuts may still be possible this year, but not guaranteed. Some policymakers see a relatively high year-end rate, others much lower. That spread indicates internal disagreement, which could mean more volatility ahead.
DuniyaDIARY 🌏📒
Image credits: The Keyword
China’s Chip Wars and Strategic Shifts in Tech: China’s Cyberspace Administration (CAC) has ordered tech giants like Alibaba and ByteDance to halt orders and cancel testing for Nvidia’s RTX Pro 6000D AI chip, a move that deepens Beijing’s push to reduce reliance on Western semiconductors by promoting domestic alternatives. Meanwhile, Huawei is rolling out its most ambitious AI hardware roadmap yet, with the Atlas 950 supercomputing node expected in late 2025 and the Atlas 960 in 2027—both positioned to outperform foreign rivals like Nvidia in compute power, memory bandwidth, and interconnect speed, reflecting China’s drive for semiconductor self-reliance and intensifying global competition in AI. At the same time, Nvidia is investing $5 billion for a 4% stake in Intel, forming a strategic partnership to jointly develop chips for PCs and data centers; while the deal stops short of Intel manufacturing chips for Nvidia, the two will collaborate on integrating custom Intel CPUs with Nvidia’s GPU technology and other products.
Nepal Army Takes Key Role in Political Mediation: Recent protests in Nepal have led to widespread violence, destruction of government buildings, and over 70 deaths. Interim Prime Minister Sushila Karki has a six-month mandate to hold elections. The Nepal Army, previously sidelined, has emerged as a mediator among protestors, NGOs, and local leaders, while political parties remain divided and unhappy with the dissolution of parliament. The resolution of Nepal’s crisis depends on whether the Army can foster inclusive dialogue and address long-standing issues of exclusion and corruption.
Tariff Turmoil Spurs Record Footwear M&A: U.S. footwear and apparel deals hit a record $21B in 2025 as Trump’s renewed tariffs fuel consolidation. Skechers is going private in a $9.42B buyout, while Foot Locker fast-tracked its $2.4B sale to Dick’s. The surge tops last year’s $16.1B peak as brands seek scale amid supply chain strains and geopolitical risks.
Google’s Gemini Shines at ICPC Finals: Google’s Gemini 2.5 solved 10 of 12 problems at the 2025 ICPC World Finals, including one no human team cracked, earning a gold medal. The win underscores Gemini’s growing edge, coming on the heels of its gold at the International Mathematical Olympiad.
Aur Batao 📰
India's First Gold Mine: Deccan Gold Mines Ltd (DGML) is set to begin full-scale production at India's first large private gold mine in Andhra Pradesh. The mine is expected to produce 750 kg of gold annually, with production rising to 1,000 kgs within three years, adding to India's current output of 1.5 tonnes. This is a significant step towards reducing India's reliance on imported gold.
Brain-Eating Amoeba Alert In Kerala: Kerala is on high alert after a brain-eating amoeba killed 19 people. The outbreak of primary amoebic meningoencephalitis (PAM) is caused by the amoeba Naegleria fowleri. The state has initiated a massive awareness campaign to educate the public on precautions, including avoiding swimming in contaminated water bodies.
Vote Theft Allegations: In a press conference, Rahul Gandhi accused Chief Election Commissioner Gyanesh Kumar of "protecting vote thieves" and "destroying Indian democracy." Gandhi presented data from Karnataka's Aland constituency, alleging that over 6,000 votes were systematically deleted using fraudulent methods and claimed the EC has blocked the Karnataka CID's investigation into the matter by withholding crucial information.
Gen Z and Millennials Investment: According to recent reports, Indian millennials and Gen Z account for 48% of mutual fund investors. This demographic is driving a surge in the market, with assets under management (AuM) reaching ₹75.35 lakh crore in 2025, a near 3x increase in five years.
India’s Golden Boy Suffers Early Elimination: Neeraj Chopra did not advance in the World Athletics Championship Javelin finale in Tokyo, finishing eighth with a best throw of 84.03m. His compatriot, Sachin Yadav, finished in fourth place with a personal best of 86.27m. The gold medal was won by Keshorn Walcott of Trinidad & Tobago with a throw of 88.16m.
Tri-Nuclear Drills: India sent a 65-member contingent to the Zapad-2025 drills with Russia and Belarus. The exercises, which featured tactical nuclear launch rehearsals and hypersonic missile displays, underscore India's tight defence ties with Moscow amid tensions with the United States.
