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Good morning! The Alaska meeting between Trump and Putin had the world on edge. But while the actual meeting didn’t result in much, it has given us rather consequential insight into high profile safety matters. Russian President Vladimir Putin’s bodyguards reportedly carry a special “poop suitcase” to prevent foreign powers from obtaining sensitive information about Putin’s health from his rejections. It seems the security practice has been in place since 1999 when Putin assumed leadership. The suitcase has been named Vladimir’s Poo-tin. Sorry, we had to.
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 6 mins.
Markets 🔔🐂🐻
As of the Indian market close on Aug 18th
The week started on a green note as the Indian stock market ended with solid gains on Monday, led by auto, real estate, and consumer durables shares, as investors cheered the plans for recent GST reforms.
Economy
Modi’s new GST booster shot
Image credits: India Today
High on GST: Monday ended on a positive note, with both the Sensex and Nifty climbing, buoyed by Prime Minister Narendra Modi’s Diwali gift - a sweeping overhaul of the Goods and Services Tax (GST).
The big promise: The government is proposing a major rate rationalisation. The current four-slab structure of 5%, 12%, 18% and 28% could shrink to just two - 5% and 18%, with a special 40% rate reserved for sin goods like tobacco. The idea is simple: make GST easier, fairer, and cheaper for everyday consumers. If cleared, many products in the 12% bracket, from butter and ghee to noodles and clothing, will move down to 5%. Even high-ticket durables like televisions and air-conditioners, now taxed at 28%, may soon fall under the 18% slab. In other words, a lot of everyday shopping and even some big purchases, could get lighter on the pocket.
The anticipated positive wave: The impact could be immediate. Nearly a tenth of India’s retail inflation basket may see relief once the cuts kick in this October. These are the very categories where inflation has been sticky, even as overall price levels eased to record lows. Lower GST could give households much-needed breathing room and a reason to spend.
Will it revive demand? FMCG companies have struggled through nine straight quarters of weak rural income and stubborn costs. Automakers, too, have seen sales lose momentum this year. A GST cut, paired with lower inflation, could finally unlock demand in these stressed sectors. Rural India is still outperforming cities in consumption, clocking 8.4% volume growth in the June quarter versus 4.6% in urban areas, according to NielsenIQ. But urban markets are slowly catching up, with smaller towns showing signs of life. A consumption push via GST cuts could accelerate this recovery.
The festive bet: The government’s gamble is most likely - put more money in the hands of consumers just before the festive season and let demand do the heavy lifting. If the plan plays out, households will save, companies will sell more, and the economy gets a new momentum boost.
Global Affairs/ Diplomacy
Putin calls Modi after the Alaska summit
Image credits: East Asia Forum
Modi-Putin equation: Just days after US President Donald Trump and Russian President Vladimir Putin met face-to-face in Alaska, their first such encounter since the Ukraine war began, the world is still weighing the outcome. The Anchorage summit didn’t deliver a ceasefire, but it did give Putin a stage to push his demand for territorial concessions from Kyiv.
When Putin called Modi: What caught many by surprise was Prime Minister Narendra Modi’s revelation on Monday that President Vladimir Putin had personally debriefed him on the Alaska summit. In a post, Modi thanked Putin for the call and for sharing insights from the meeting. He also reiterated India’s long-standing position, urging a peaceful resolution to the Ukraine conflict.
India-Russia, more than diplomacy: Incidentally, Putin’s Alaska trip marked his first visit to US soil in years and was widely seen as a symbolic diplomatic win especially concerning the Ukrainian war. And while US–India ties are under new strain, particularly after Washington hiked tariffs on Indian goods from 25% to 50%, citing India’s refining and re-export of discounted Russian crude as indirectly funding Moscow’s war effort - the fact that Putin chose to personally brief Modi (and not any other leader, despite his strengthening ties with China’s Xi Jinping and North Korea’s Kim Jong Un, the former offering diplomatic cover and the latter reportedly supplying troops) is symbolic of the enduring India–Russia relationship. It is also indicative of the personal camaraderie between Modi and Putin - something that might give Trump a few things to reflect on.
Infrastructure
Mumbai struggles with rain and failing infrastructure
Image credits: BS
Mumbai under water: A relentless downpour paralysed Mumbai on Monday, flooding streets, halting transport, and forcing schools to shut. Authorities issued a red alert after the city received 177 mm of rain within hours. Chief Minister Devendra Fadnavis urged residents to stay indoors, while NDRF teams and the military were deployed for rescue operations. In Nanded district, a cloudburst left five people missing, adding urgency to relief efforts. Forecasts warn of more heavy rainfall and high tides over the next three days.
Stolen from the sea: But Mumbai’s floods are more than just a monsoon story, they are a tale of a city stolen from the sea. Once seven islands, Bombay was reshaped by Portuguese and British colonisers who reclaimed land, built bunds and drainage systems, and turned it into a global trading hub. What began as colonial ambition became an urban experiment, one that thrived but at great human cost, crowding workers into shanties, spreading disease, and stretching nature to its limits.
Mumbai caught in a grip: Today, the same greed persists. Unchecked urbanisation, glass towers, and relentless reclamation continue to choke the city’s natural drainage. Mangroves, once natural flood buffers, have been erased to make way for “development.” The price is paid every monsoon when the city drowns under its own weight. Every year, Mumbaikars wade through flooded roads with resilience, but resilience is no substitute for vision. Until the greed that built Mumbai gives way to sustainable planning, the city will remain at war with the sea it once stole.
Business India: Dhanda Hai Yeh!
Buy India, not sell: Leading market analyst at Jefferies, Christopher Wood, advised investors to buy Indian equities, stating that Trump will back down from tariff threats, which are not in America’s interest. While he acknowledged India’s recent underperformance and high valuations but pointed its tendency to rebound after such periods.
Steel synergy: JSW Steel and South Korea’s POSCO signed a non-binding HoA to explore a 6 MTPA integrated steel plant in India via a 50:50 JV, with Odisha under consideration. Next steps: feasibility study, investment terms, approvals. This has potential boost to domestic capacity and exports.
Reliance’s herbal hustle: Reliance Consumer bought a majority stake in Naturedge Beverages (Baidyanath-backed), entering herbal drinks via Shunya’s zero-sugar, herb-infused range (Ashwagandha, Brahmi, Kokum). It plans to scale nationwide using Reliance distribution to tap functional-beverage demand.
US’s double face? US Secretary of State Marco Rubio defended slapping 50% tariffs (including 25% for Russian oil) on India while sparing China, arguing China’s curbs would roil energy markets; China buys 2 million barrels per day of Russian crude, followed by India. Critics called it double standards.
Amazon’s prime sprint: Amazon India is aiming for leadership in e-commerce and quick commerce, and has pledged to boost investments.
World 🌏
Trump, Zelenskyy and the great gamble over Ukraine
Image credits: The New York Times
The Meeting: It was showdown time in Washington. On Monday, Ukrainian President Volodymyr Zelenskyy walked into the White House with more than his country’s future on the line. Backed by an entourage of European leaders (including Britain’s Keir Starmer, Italy’s Giorgia Meloni, France’s Emmanuel Macron and NATO chief Mark Rutte) Zelenskyy came armed with solidarity. Their message was simple to read, Ukraine’s fight is Europe’s fight.
Donald Trump - the real test: The U.S. president has been pressing Kyiv to strike a deal with Moscow, effectively giving up land in exchange for vague American security guarantees. For Zelenskyy, who has repeatedly vowed not to surrender territory, the choice, a tough one - hold firm and risk Trump’s ire, or bend and face backlash at home. Adding to the drama, Trump has recently cozied up to Vladimir Putin after their Alaska summit, stoking fears that Washington’s tilt may be shifting toward Moscow. European leaders fear that if Putin isn’t stopped in Ukraine, he won’t stop at Ukraine.
Zelenskyy did get a small win over the weekend: Trump hinted at postwar U.S. security assurances for Kyiv, with Moscow’s envoy even suggesting Putin was open to the idea. Still, Trump wants the Donbas ceded, something Ukraine’s constitution forbids without a referendum. And Ukrainians overwhelmingly reject it. For now, the standoff continues. But with Trump floating the idea of a three-way summit with Putin and Zelenskyy, the world could be in for a dramatic turn.
DuniyaDIARY 🌏📒
Image credits: South China Morning Post
Swatch ad outrages China: Swiss watchmaker Swatch has landed in hot water over an ad that sparked outrage in China and beyond. The campaign featured an Asian male model making a gesture with his eyes that many saw as racist. Swatch quickly apologised and said it had pulled the ad globally, stressing that all related materials were removed “immediately.”
Thailand’s Crypto bet: Thailand is starting an 18-month pilot program where foreign visitors can swap their crypto for baht and spend it locally. Officials say it’s all part of the push to give the country’s struggling tourism sector a fresh boost.
Myanmar gearing up for elections: Myanmar’s military government has announced that long-promised elections will begin on December 28 amid widespread scepticism that authorities will allow a free and fair vote.
Aur Batao 📰
Luxury home’s price pop-up: Bengaluru ranked 4th of 46 cities for premium home price growth, up 10.2% YoY; Mumbai was 6th at 8.7%, Delhi - 15th at 3.9%. Global leaders were Seoul at 25.2% price growth, Tokyo at 16.3%, and Dubai at 15.8%. Global average price growth was 2.3%.
Yamuna on edge: Yamuna in Delhi breached the 205.33m danger mark, touching 205.36m by 2 pm on Monday, after water releases from Haryana’s Wazirabad and Hathnikund barrages (~39,470 and ~58,000 cusecs). Evacuations trigger at 206m and authorities remain on high alert.
Tennis giant’s debut: Madurai’s 6'5" tennis ace Dhakshineswar Suresh, shocked Alejandro Tabilo (No.103; ex-Top 20) in Winston-Salem. He blasted 15 aces and rallied from 1-6, 1-3 in the tiebreak to reach his first ATP main draw.
