Dec 05: India-Russia's billion dollar trade target, Bharat Taxi Debuts

Kerala’s forest detectives have a new whodunnit: three camera traps vanished from the Kottiyur Range, leaving wildlife monitoring on “buffering.” Each unit costs about ₹25,000, and with only two of the five left, the leopard-watch has now officially turned into a missing-camera watch. Officials suspect a planned swipe—no, this wasn’t a selfie spot—and the police are now on the case.

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 6 mins.

The Indian market broke its four-day losing streak on Thursday, with the Sensex gaining 158 points and the Nifty rising 47 points. The rebound was primarily driven by strong gains in the technology and IT sectors, amid caution ahead of the RBI policy decision.

What happened: Russia and India are focusing on expanding their trade relationship, with a goal of reaching a $100 billion trade turnover by 2030. Russian Finance Minister Anton Siluanov highlighted this ambition in a recent interview with Russian media outlet Izvestia. Siluanov described the opening of VTB Bank's new flagship office as a crucial step in building the financial infrastructure needed to support increased trade volumes between the two nations.

What Changed: Siluanov noted that current trade figures have exceeded initial expectations set in 2018. At that time, the target was a $30 billion trade turnover, but the actual figure has now reached $68 billion. This rapid growth is attributed to several factors, including enhanced cooperation in trade relations, increased investment, and a rise in travel between the two countries. The military-technical sector and energy resource trade are also areas of significant development, contributing to the strengthened ties between Russia and India.

Factors of Growth: The leap from the initial $30 billion target to the current $68 billion highlights the accelerated pace of trade expansion. This growth has been driven by increased collaboration in various sectors, including machinery and equipment trade, as well as the development of military-technical and energy resource exchanges. Such progress underscores the deepening economic ties and the potential for further growth as both countries work towards the ambitious $100 billion target by the end of the decade.

Looking Ahead: The statement from Siluanov comes just as Russian President Vladimir Putin visits Delhi for the 23rd India-Russia Annual Summit. This visit is expected to further solidify the partnership between the two nations and pave the way for continued economic cooperation. Russia's focus on increasing imports from India and simplifying trade settlements is seen as key to achieving the $100 billion trade turnover goal.

What’s the Buzz: The Indian government has launched pilot trials for Bharat Taxi, a new ride-hailing service aimed at competing with platforms like Ola and Uber. Announced by Union Home Minister Amit Shah on December 2, the service seeks to empower drivers by allowing them more control and a larger share of earnings. Bharat Taxi is designed to reduce the high commissions charged by private operators, making drivers co-owners of the platform. This initiative could significantly impact the ride-hailing industry in India by offering drivers independence from private companies.

The Model: Bharat Taxi is operated by Sahkar Taxi Cooperative Ltd, a multi-state cooperative that stands out as the world’s first national mobility cooperative, with no government stake. As of now, the service is in its trial phase in New Delhi and Saurashtra, Gujarat, with more than 51,000 registered driver-members. The cooperative model enables drivers to have a direct say in operations and decision-making.

The Numbers: With over 51,000 drivers already registered, Bharat Taxi is backed by a national-level federation formed on June 6, 2025. This federation comprises eight major cooperatives, including NCDC, IFFCO, and GCMMF, which fully fund the platform. The zero-commission model of Bharat Taxi ensures drivers receive the entire fare, enhancing their financial transparency and security.

The Larger Picture: Bharat Taxi represents a shift towards cooperative strength and shared ownership in the ride-hailing industry. By providing full financial transparency and profit-sharing options, the service aims to redefine driver welfare in India. Drivers benefit from having representation on the cooperative board and are eligible for annual profits and dividends. This initiative reflects a broader trend of enhancing worker rights and reducing dependency on private corporations, which could influence similar movements in other sectors.

Rupee Falls 1.3% to Record Low as RBI Eases Intervention: The Indian rupee hit a record low of 90.42 per dollar, dropping 1.3% over seven trading sessions. The Reserve Bank of India (RBI) has eased its interventions, allowing the rupee to weaken to combat foreign outflows and slow foreign investments. While a weaker rupee offers policy flexibility, it reduces the attraction of Indian assets to foreign investors.

Market Caution Expected Through December: As foreign investors wind down positions in December, typically a slow month due to profit booking, markets may not see strong inflows. Domestic institutional investors are also holding back, waiting for clearer earnings visibility. Analyst Subramaniam predicts a consolidating market with limited downside risk, though a rate cut by the RBI could shift sentiment.

Big Tech's $100 Billion Debt Surge for AI Expansion: Major U.S. tech firms are gearing up for nearly $100 billion in financing by 2026 to build AI-ready data centers, marking a shift from using cash reserves to bond markets. Since September, four leading cloud-computing and AI companies have raised almost $90 billion through public bonds. This surge is driven by AI infrastructure needs and a robust M&A deal pipeline, with $175 billion in announced transactions.

Rupee Faces Pressure Amid Foreign Outflows and Rising Imports: The Indian rupee is under significant pressure, driven by sustained foreign portfolio outflows averaging ₹2,500 crore per day, and increased gold and Chinese imports. The Reserve Bank of India (RBI) has shifted from defending the currency to moderating its volatility. Despite a strong domestic economy, the rupee's performance is heavily influenced by global financial flows and external factors.