Daily handpicked updates about India’s business and the business of India
Good morning! If you’re a Marvel fan in Mumbai, we have great news for you. Mumbai got its very own Spider-Man this monsoon season, only he’s not swinging between skyscrapers but wading through knee-deep waters armed with … a wiper. Instagram now-celeb Shaddy Man went viral trying to help commuters and residents stranded in the rain by clearing floodwaters. Only in Mumbai can a wiper outshine crores worth of drainage planning. Somewhere in a corner BMC is singing the old Desi Spiderman global hit ‘Spiderman…Spiderman…tune churaya mere dil ka chain..’.
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 6.5 mins.
Markets 🔔🐂🐻
As of the Indian market close on Aug 20th
The Indian equity indices ended higher on their fifth consecutive session on Wednesday. The Sensex and Nifty gained significantly due to heavy buying in IT stocks.
Business and Policy Regulation
Online gaming could be offline real soon
Picture credits: The Hindu
Gaming Bill: India’s booming online gaming sector has just hit a hard pause. The Promotion and Regulation of Online Gaming Bill, 2025, passed yesterday in the Lok Sabha, seeks to promote e-sports and casual social games, while outright banning real-money gaming and online betting. This includes fantasy sports, online poker, rummy, and even online lotteries, activities that together make up nearly two-thirds of the country’s gaming revenue. According to PTI, the new law strikes at the heart of India’s $3.8 billion online gaming industry, one that has attracted top global investors and produced unicorns like Dream11, Games24x7, and Mobile Premier League. The ban is expected to cause ripple effects across startups, venture capital, and even sports sponsorships.
Why the Crackdown: The government has argued that the rapid growth of real-money gaming poses “deleterious effects on families, society, and the economy.” The ministry cited cases linking these platforms to money laundering, fraud, even terror financing. The addictive nature of such games, it added, has led to mental health issues with rising instances of anxiety, depression, sleep disorders, and behavioral problems, especially among younger users.
A Debate Years in the Making: This is not the first time online gaming has been in the spotlight. The debate began in the early 2020s when concerns over addiction and financial exploitation surfaced. By 2023, amendments to the GST rules sparked heated arguments over whether online gaming should be classified as gambling. In 2024, state governments began introducing their own rules, creating a patchwork of regulations and raising calls for a uniform national framework. The Supreme Court is still expected to rule later this year on whether fantasy sports and card games like poker and rummy qualify as “games of skill” or “gambling.” That verdict could decide if gaming startups must cough up nearly $20 billion (₹1.5 trillion) in retrospective GST claims.
Industry on Edge: For India’s gaming startups and investors, the new law feels like a knockout punch. Venture-backed companies such as Dream11, Gameskraft, and Games24×7 (together accounting for $1.36 billion of the industry’s revenue) face an uncertain future. Global investors including Tiger Global, TPG, Kalaari Capital, Peak XV, and Alpha Wave Global, who bet big on India’s gaming boom, are now in wait-and-watch mode. IPO plans from several firms may also be shelved indefinitely. Market reaction was swift: shares of Nazara Technologies fell nearly 13% on the NSE, even though the company clarified it had no direct exposure to real-money gaming. Still, its 46% stake in PokerBaazi-owner Moonshine Technologies dragged sentiment down further.
The Cost of a Ban: Industry insiders warn the ban could destabilize one of India’s fastest-growing digital sectors. Real-money gaming generated $2.4 billion of the industry’s $3.8 billion revenue in FY24, according to gaming investment firm Lumikai. Companies estimate more than 20,000 jobs could be lost, with over 300 startups forced to shut down. Domestic sports leagues that rely heavily on gaming sponsorships may also face collapse. One industry source cautioned that “around 50% of franchise sports leagues may be closed, with sponsorship revenue losses ranging between 30–40%.”
The Path Ahead: For now, the industry is caught in a storm of legal battles, investor anxiety, and policy uncertainty. Whether the Supreme Court rules in favor of skill-based gaming or doubles down on the gambling label could determine the sector’s survival.
Economy
U.S. trade war could push millions into poverty
Image credit: Mint
Trump’s tariffs: A storm is brewing in the global economy, and India is caught right in its path. With Donald Trump doubling down on tariff hikes, the ripple effects threaten not just India’s exports but the livelihoods of millions. Economists warn that over 2.5 million Indians could be pushed into poverty. Still, Donald Trump’s tariff tantrums are only one side of the story; the second is America’s expectation that India behave like a compliant partner. Atleast according to Peter Navarro, Trump’s longtime trade adviser - his message to India is blunt: if you want to be treated as a strategic partner of the United States, start acting like one.
The Tariff Trap: Trump’s tariff plan targets labor-intensive exports - textiles, apparel, gems and jewelry, machinery, and electronics. These industries aren’t just lines on India’s balance sheet; they are the backbone of millions of households, particularly in regions like Gujarat, Tamil Nadu, and Punjab. A sudden rise in import duties makes Indian goods less competitive in the U.S. market, which remains one of India’s biggest export destinations.
The Math is Brutal: Fewer orders mean slower factories, layoffs, and shrinking wages. And when you’re talking about industries that employ vast numbers of low- and semi-skilled workers, the margin between survival and poverty is razor-thin.
Poverty by Policy: The World Bank and trade analysts have painted a grim picture. By squeezing export demand, tariffs risk cutting off income streams for the most vulnerable - daily wage workers, contract laborers, and small-scale entrepreneurs linked to the export chain. Over 2.5 million people slipping below the poverty line isn’t just a statistic; it’s millions of families unable to afford food, education, or healthcare. For an economy still struggling with job creation challenges, the timing couldn’t be worse.
The New Rules of Partnership: Now coming to the second act - in Washington’s eyes, it boils down to two things; recycle the dollars back into America. India runs a healthy export surplus with the U.S. - with over $87 billion in goods shipped each year. Navarro wants those dollars funneled back into buying American defense equipment, preferably without quibbles over technology transfer or local manufacturing demands. Second, stop gaming the oil markets. New Delhi has been importing cheap Russian crude, refining it, and re-exporting products, a clever arbitrage that helps India’s balance sheet but undermines U.S. sanctions on Moscow. Navarro’s diktat: quit the practice and align with U.S. strategic priorities.
Business India: Dhanda Hai Yeh!
Image credits: Telegraph India
Reliance’s big goals: Mukesh Ambani is aiming to double Reliance size by FY30, driven largely by Jio, Retail, and New Energy. The upcoming AGM on August 29 is crucial for strategic announcements.
India’s non-phone electronics boom: India’s non-smartphone electronics exports crossed $14 billion in FY24–25, powering total electronics exports to $38.57 billion; growth came from solar PV ($1.12 billion), telecom gear ($1.4billion).
Hooking an IPO: Seafood startup Captain Fresh filed confidentially with SEBI for a $350–400 million IPO, including a $200 million fresh issue and eyeing a $1 billion+ valuation.
Discounted crude amid tariff war: Despite looming US tariff hikes, Russia expects India to keep buying its oil. Moscow cites a 5% discount as an economic win even as India defends buying the cheapest crude while deepening ties with Russia.
World 🌏
Japan’s nuclear dilemma
Image credits: The United Nations
Japan’s nuclear policy shift: Donald Trump’s return to the White House has already shaken the global security order, and nowhere is the tremor felt more acutely than in Tokyo. His abrupt suggestion that the United States may rethink its security commitments to allies like Japan has revived a once-taboo question: Should Japan consider building its own nuclear arsenal?
Saying No: For decades, Japan has abided by its pacifist constitution and its “three non-nuclear principles” — not possessing, not producing, and not permitting nuclear weapons on its soil. But Trump’s unpredictability, combined with a more aggressive China and an increasingly erratic North Korea, is forcing Japanese policymakers to weigh the “unthinkable.” What was once political heresy is now a subject of quiet but serious debate within ruling circles.
The world order: This discussion is not happening in a vacuum. Nuclear doctrines around the world are far from uniform. Not all countries have pledged to avoid nuclear first use. Some, like China (since 1964) and India (since 1998), maintain a clear No First Use (NFU) policy, promising to use nuclear weapons only in retaliation. But others, including Russia, the United States, the United Kingdom, and France, keep the option of first use on the table. Pakistan openly signals it could use nuclear weapons first in a crisis with India, while North Korea issues frequent threats of mass retaliation. Israel, though undeclared as a nuclear power, has also refrained from committing to NFU. The fragmented nature of these doctrines makes the global nuclear arena even more precarious. Meanwhile, international treaties have struggled to contain the threat. The Treaty on the Prohibition of Nuclear Weapons (TPNW), adopted in 2017, represents the boldest global effort to ban nuclear weapons outright. Yet, none of the nine nuclear-armed states — including the U.S., Russia, and China — have signed or ratified it, limiting its effectiveness to symbolism rather than binding change.
The question: For Japan, the debate is existential. Any move toward nuclearization would clash with its post-war identity and trigger alarm in East Asia. Yet, Trump’s shock has made what once seemed politically impossible now an open question.
DuniyaDIARY 🌏📒
Image credits: NYT
Trump’s Tax Break: President Trump’s “One Big Beautiful Bill,” signed on July 4, grants seniors aged 65+ a $6,000 tax deduction, exempting nearly 88% from Social Security taxes.
Canva’s new valuation: Australian design giant Canva has launched an employee stock sale valuing the firm at $42 billion, ahead of its expected IPO later this year.
Novo Nordisk freezes hiring: Novo Nordisk, the maker of Wegovy, has initiated a global hiring freeze for non-critical roles amid increasing competition and pressure from Eli Lilly. This decision follows a profit warning that led to a significant drop in market value and the appointment of a new CEO, Mike Doustdar, who is considering cost-saving measures, including potential layoffs.
Japan Export Decline: Japan’s exports plunged 2.6% in July from a year earlier, their steepest drop since February 2021, as shipments to its two largest markets — the United States and China — declined.
Aur Batao 📰
Delhi’s CM was slapped: Delhi’s CM Rekha Gupta was reportedly slapped and her hair pulled during a ‘Jan Sunwai’ programme. Delhi Police booked a 41-year-old Rajkot resident, Sakriya Rajeshbhai Khimjibhai, for attempted murder after attacking the CM.
Bill to remove convicted Netas: Lok Sabha introduced three bills to remove PMs, CMs, and ministers if arrested and held for 30 days on offences carrying 5+ years’ jail. The bill introduced by Amit Shah led to chaos with opposition MPs tearing copies of the bill, and raising questions about Mr. Shah’s 2010 arrest while he was Home Minister of Gujarat. A Joint Committee will review the bill and submit its report to the House by November.
Congress’s private quota push: Congress urged a law to mandate SC/ST/OBC reservations in private higher-education institutes citing a parliamentary panel’s recommendations, Article 15(5), and low current representation in top institutes.
ICC ranking glitch: Rohit Sharma and Virat Kohli briefly vanished from ICC ODI rankings due to a glitch, despite being active and ranked No. 2 and No. 4 last week; ICC clarified and restored tables, with Shubman Gill still No. 1 and Babar at No. 2.
