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.
