Aug 25: Books are back, India pushing Russia to reduce trade gap

Good morning! Indian sprinter Animesh Kujur just sprinted his way into Indian history with gold in the 200m at the National Inter-State in Chennai. He is on course to be the first-ever Indian male sprinter to line up at the World Athletics Championships in Tokyo. “No pressure for medals” is what his coach Martin Owens said for Tokyo, “it’s about soaking in the moment and rubbing shoulders with the greats”. We can probably believe him since he’s not Indian, otherwise that would have just been slang for minimum top 3 beta. Best of luck Animesh!

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 6 mins.

India and world affairs: External Affairs Minister S. Jaishankar’s visit to Moscow this week comes at a time when New Delhi finds itself at the centre of a tricky trade equation. On the one hand, India’s energy partnership with Russia has expanded significantly since 2022, giving Moscow a reliable buyer for its oil exports. On the other, Washington has been tightening the screws, most recently with President Donald Trump’s announcement of a 50% tariff on India, including a 25% levy directly tied to New Delhi’s purchase of Russian crude.

India-Russia trade: Against this backdrop, Jaishankar used his meetings in Moscow, including a call with President Vladimir Putin, to raise a pressing concern: India’s trade deficit with Russia has ballooned. In FY25, India imported goods worth $63.7 billion, largely oil, while its own exports to Russia stood at just $4.88 billion. That leaves a gap of nearly $59 billion. The Minister underlined that for this relationship to remain sustainable, Moscow must begin to import much more from India - pharmaceuticals, agriculture, textiles, and other products that have been facing regulatory and non-tariff hurdles.

The US factor: Even as India nudges Russia to buy more, the larger challenge lies in how New Delhi balances its ties with Washington. Jaishankar recently dismissed US criticism with characteristic bluntness. “It’s funny to have people who work for a pro-business American administration accusing other people of doing business,” he said. “If you have a problem buying oil or refined products from India, don’t buy it. Nobody forces you to buy it. Europe buys, America buys — so if you don’t like it, don’t buy it.”

The comment captures India’s current approach—pragmatic and unapologetic. While ties with Washington remain vital, New Delhi is unwilling to be strong-armed into choices that limit its strategic flexibility.

Looking ahead: India and Russia are already exploring ways to expand bilateral trade to $100 billion over the next five years. Prime Minister Narendra Modi and President Putin are expected to meet in New Delhi later this year, where the issue of trade balance will likely dominate discussions. For India, the priority is clear: continue securing affordable energy from Russia, while ensuring its exporters—whether in pharma, food, or textiles, find more space in the Russian market. Perhaps the challenge is not choosing one partner over another, but finding a balance that serves India’s long-term economic and strategic interests.

Books may be cool again? There was a time when reading a book was seen as a solitary activity, curling up with a paperback, shutting out the world, and losing yourself in the pages. But for Gen Z, the storybook looks a little different. Reading is no longer just a private pastime; it’s fast becoming a social statement, a community ritual, and even a form of self-expression. Social media has only accelerated this revival. Sub-communities on social media like BookTok and Bookstagram have turned reading into an aesthetic with a new cultural vocabulary “solo book dates,” “reading corners,” “annotated diaries” - all of which make reading look aspirational.

Digital fatigue: The resurgence of books among the young is also, in part, a reaction to digital fatigue. After years of scrolling and streaming, Gen Z seems to be carving out space for slower, more mindful experiences. Reading gives them both, a chance to disconnect from relentless feeds while still connecting with people who share their tastes.

… but also connection: Equally important is the environment people are building around books. From Sunday reading groups in parks to setting up distraction-free spaces at home, readers are deliberately making time for books. And then, there’s accessibility, audiobooks and e-books are allow people to read on the go, while commuting, or even while working out. The result? Print book sales are growing again, and the humble book has staged a quiet but powerful comeback.   

Indian government’s trade support: The Indian government is mulling a ₹25,000 crore support package for exporters under the new Export Promotion Mission (EPM) scheme. The six-year plan aims to provide easy credit and mitigate global trade uncertainties arising from the United States' recent tariff war. 

BMW’s steel investment: BMW Industries will invest ₹803 crore in a 0.5 MTPA cold rolling unit in Jharkhand. This move, part of the government's PLI Scheme, aims to boost high-end steel offerings for the auto and infrastructure sectors. 

India’s mineral shield: India is building critical mineral stockpiles and expanding its search from Argentina to Africa/Australia, under the National Critical Minerals Mission, to ensure a secure supply chain. This is a vital move for clean energy, defence, and electronics, with a focus on self-reliance to reduce import dependency.

Investments in phoren: India’s outbound investments jumped 67.74% to $41.6 billion in FY25 (from $24.8 billion), with deals up 15%. This has been driven by a focus on prioritising environmental, social, and governance (ESG) goals, the rise of GIFT City as a hub, and global tax reforms. 

Space jump: The central government is injecting ₹211 crore into Indian space startups under the Fund of Funds for Startups scheme. The scheme has committed ₹9,994 crore to 141 AIFs, helping innovators and propelling India as a rising global space power.

Sobriety Shift Gaining Pace: Something big is brewing (starting in America) and it’s not beer. For the first time in modern history, fewer than 55% of drinking-age Americans say they consume alcohol. According to Gallup, that’s the lowest level since the survey began in 1939. And even among those who still drink, consumption is down by nearly half compared to a generation ago.

Cultural undertones shifting: Since 2016, the number of Americans who believe alcohol is bad for their health has risen steadily with young people leading the change. Data from the CDC shows that between 2011 and 2023, alcohol use among adults aged 18 to 24 dropped eight percentage points, while consumption among 25- to 34-year-olds fell by five points. Nearly two-thirds of this group now say that even one or two drinks a day is harmful, a striking contrast to earlier generations who embraced drinking as a rite of passage.

Rise of the sober (drinks): Less drinking doesn’t mean less fun. In fact, the rise of the “sober-curious” movement has opened up a new kind of nightlife. Bars and retailers are expanding zero-proof menus, while Eventbrite reported a 92% jump in sober events in across America between 2023 and 2024.

Echoes of big tobacco: The parallels with tobacco are impossible to ignore. In the 1960s, smoking was deeply woven into American life. Then came Surgeon General Luther Terry’s groundbreaking 1964 report linking smoking to cancer, which reshaped public opinion almost overnight. Within five years, cigarette ads were banned from TV and warning labels became mandatory. A similar moment may now be unfolding for alcohol. Earlier this year, former US Surgeon General Vivek Murthy issued a report connecting alcohol consumption to cancer risk, urging labels on bottles that mirror those on cigarette packs.

Industry on the Back Foot: For alcohol giants like Molson Coors, Boston Beer, and Anheuser-Busch, the slowdown is already showing up in earnings. Where consumers once reached for six-packs, they’re now choosing low- or no-alcohol seltzers, hemp-derived beverages, and other “Beyond Beer” products. Volume growth has slowed across the board, forcing companies to diversify or risk decline. Two decades ago, the average American drinker consumed just over five drinks in the week - today, that figure is down to 2.8.

A tipping point: If the pattern holds, America could be witnessing the early stages of a profound cultural pivot. Drinking, once synonymous with celebration and socializing, is being reimagined. Gen Z and millennials aren’t rejecting social life; they’re reshaping it to fit a more mindful, health-conscious worldview.

Apple Hits Oppo With Trade Secret Lawsuit: Apple has sued Oppo, accusing it of poaching an Apple Watch engineer and stealing health-tech secrets. Oppo denies the charges but says it will cooperate with legal proceedings.

Overnight Millionaires: Some past and present Canva employees will soon be overnight millionaires after the design-software maker launched an employee share sale valuing the company at $42 billion this week.

WHO Warns of Chikungunya’s Global Comeback: The World Health Organization has warned of a potential chikungunya epidemic as the virus spreads beyond its usual regions. Around 5.6 billion people in 119 countries are now at risk, with cases emerging even in Europe.

Coca-Cola explores sale of Costa Coffee: Coca-Cola is weighing a sale of Costa Coffee, six years after buying the UK chain for £3.9bn, as rising costs and fierce competition squeeze its performance.

Russia-Ukraine update: Ukraine launched a drone attack on Russia on Sunday, forcing a sharp fall in the capacity of a reactor at one of Russia's biggest nuclear power plants and sparking a huge blaze at the major Ust-Luga fuel export terminal.

India’s postal pause: India Post will suspend most US-bound mail from Aug 25 due to new US customs rules effective from Aug 29. The duty-free exemption on imported goods worth up to $800 is withdrawn; however, letters, documents and gift items up to $100 will remain duty-free. 

Dream11’s team India exit: Dream11 is negotiating an exit from its ₹358 crore Team India jersey sponsorship after the government’s real-money gaming ban.

Modi’s invite to Zelensky: Prime Minister Modi invited Ukrainian President Volodymyr Zelenskyy to visit India. Both countries are working to finalise a date to strengthen bilateral relations and discuss peace efforts amid the ongoing conflict with Russia.  

Starlink’s India rules: India granted Starlink a Unified License with strict security conditions. It requires all Indian user traffic to be routed through local gateways, ensuring data is not copied, decrypted, or mirrored on foreign servers. 

Postmen + Mutual funds: AMFI has tied up with India Post to train 1 lakh postmen to distribute mutual funds in remote India to be rolled out in 13+ language content, 30 investor camps, and in Bharat Nivesh Rail Yatra on Vande Bharat trains, with IIM tie-ups and more.

Anil Ambani under CBI radar:  CBI has filed a criminal case against Anil Ambani and his company, Reliance Communications, for allegedly defrauding SBI of nearly ₹3,000 crore. His home and Reliance’s offices were raided.

THAT’S ALL FOR TODAY!

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