Aug 20: From reel business to real business, India-China balancing act

Good morning!

Forget groceries—Zepto now lets you add land to your cart. Yep, Delhi-NCR folks can literally order a plot on the app and get connected to a property expert in 10 minutes. It’s low commitment and more “hi, nice to meet you”—first-date energy. Think Tinder, but instead of swiping on bros, you’re tapping on brokers. It’s giving Khosla Ka Ghosla vibes, except the ghosla gets delivered and no one’s left asking: “party hain ya broker?”

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 6 mins.

On Tuesday, the Dalal Street indices ended higher for the fourth consecutive trading session, led by solid gains in index heavyweights Reliance Industries and selected auto sectors.

From Creators to Entrepreneurs: Not long ago, India’s influencers were known for viral reels, trending audio, and loyal digital fandoms. Today, many are trading ring lights for retail shelves, building brands in beauty, fashion, fitness, and more. Remarkably, a wave of content creators is evolving into full-fledged entrepreneurs.

How big is it? The numbers speak for themselves. According to Boston Consulting Group, India now has over two million monetised creators influencing more than $350 billion in consumer spending. Direct revenues from the ecosystem are expected to grow from $20–25 billion today to over $100 billion by 2030. Even more striking, creator-driven influence could shape more than $1 trillion in consumption by the end of the decade. What was once a side hustle is fast becoming one of India’s most powerful commercial engines.

What is happening? The shift is visible across the spectrum. Creators are launching direct-to-consumer businesses, often in the same categories where they’ve built authority—beauty, fashion, wellness. For example, a Kolkata-based YouTuber turned her relatable, no-filter persona into a clothing label, with followers becoming models in a community-led campaign that drew over 60,000 comments. This approach mirrors a broader trend: authenticity is the new marketing muscle. Unlike legacy brands, creator-led ventures trade on relatability and speed, targeting micro-communities with razor-sharp positioning.

Why is it happening? Several factors are fuelling this boom. First, affordable smartphones and cheap data—India’s monthly data usage has more than doubled since 2020—have given creators unprecedented reach. Second, Covid-19 accelerated digital adoption, making online voices central to how Indians discover and buy. Third, influencers already enjoy a level of trust that traditional advertising struggles to earn. For creators, the motivation is simple: diversify beyond advertising revenue, build equity, and turn influence into a long-term business.

Outlook: The West has already produced billion-dollar creator brands—MrBeast’s Feastables, Logan Paul’s Prime, Kylie Jenner’s cosmetics. India is still early, but experts argue its opportunity may be bigger. Creators like Kusha Kapila (Underneat), Nitibha Kaul (AltK Beauty), Neetu Bisht (Netose Clothing), and Sunny Chopra (Ksunch) are already building their own brands, competing with celebrity-backed labels such as Katrina Kaif’s Kay Beauty. With 800 million internet users and a rising tide of Tier-2 and Tier-3 creators building in local languages, the market isn’t just top-heavy—it’s wide, diverse, and deeply embedded in culture. EY projects influencer marketing in India alone to hit ₹3,375 crore ($400M+) by 2026, while ecosystem builders like Pocket Aces and AnyMind are stepping in to provide everything from product testing to distribution.

The bottom line: What started with casual vlogs and Instagram skits is reshaping commerce. India’s creators are no longer just entertainers, they’re founders, brand-builders, and cultural gatekeepers. The question isn’t whether influencers can be entrepreneurs. It’s how many of them will become India’s next household business names.

Sweeping change: India–China relations have, for the most part, remained tense. Border clashes, competing ambitions, and geopolitical distrust have long defined the uneasy dynamic between the two Asian giants. Yet today, a new wave of “co-operation” seems to be emerging and ironically, it may be the byproduct of Donald Trump’s unilateral bullying.

The visit that matters: Chinese Foreign Minister Wang Yi’s visit to India this week, where he held talks with External Affairs Minister Dr. S. Jaishankar, marks a milestone in recalibrating ties. Beijing also confirmed that Prime Minister Narendra Modi will visit China later this month. Both sides appear to be fine-tuning their equations to counter the global disruptions unleashed by Trump’s tariff wars.

The Trump factor: The India–China relationship is still shaped by a bloody border dispute, a vast power imbalance, and a fierce contest for influence across Asia. But Trump’s relentless trade offensives may be achieving the unthinkable, nudging New Delhi and Beijing into a wary, tactical embrace. Trump’s announcement of a new 25% base tariff on Indian goods, set to rise to a punishing 50% as retaliation for India’s purchase of Russian oil, mirrors the long pressure campaign he has waged against China. Suddenly, India and China share a rare alignment: shielding their economies from Washington’s economic hammer. Analysts argue that while signs of a thaw between the two neighbors had already been visible, Trump’s policies have accelerated the pace of this shift.

The bigger gains: China has already moved to lift curbs on exports of fertilizers, rare-earth minerals/magnets, and tunnel-boring machines to India, the very three demands New Delhi had placed on Beijing. For India, these concessions could prove strategically vital, especially in agriculture and infrastructure.

Which way does the wind blow: The emerging partnership is still tactical, fragile, and filled with mutual suspicion. Yet, as Washington doubles down on tariffs and trade penalties, New Delhi and Beijing may find themselves standing closer together than they or anyone else ever expected. 

Cotton duty waived: India has scrapped the 11% cotton import duty from Aug 19–Sep 30 to boost textile competitiveness, following the imposition of a 50% US tariff on garments. Even as the Industry seeks an extension, some exporters are considering offshore production, with an eye on achieving a $100B export target by 2030.

India’s green hydrogen push: India is targeting 10% of global green hydrogen demand by 2030 under the national green hydrogen mission. As part of this initiative, annual production capacity of 8.62 lakh tonnes has been awarded to 19 firms, and 3,000MW of electrolyser capacity to 15 companies under the SIGHT scheme.

India’s Q1 growth edges past RBI: India’s Q1 FY2026 GDP growth is projected at 6.7%, above the RBI’s 6.5% target. Growth is driven by a strong services sector and increased government spending, despite slowdowns in industry and agriculture.

From zinc to uranium: Hindustan Zinc will bid for uranium blocks if India opens the sector to private players, says CEO Arun Misra. The company also plans to expand into rare earths (neodymium within 5–6 years), lithium, and other minerals, as well as doubling its zinc capacity to 2 million metric tonnes by 2029.

Deepwater corpus coming: The government is planning a dedicated corpus under the National Deepwater Exploration Mission to fund strategic oil and gas exploration in deepwater and ultra-deepwater blocks. The size and funding sources are yet to be finalised, but OIL has signalled its support for the initiative.

The “miracle” weight-loss drug: Originally approved by the U.S. FDA in 2017 to manage blood glucose in Type 2 diabetes, Ozempic (semaglutide) has morphed into an “It Drug” in Hollywood and beyond—even at $1,500 a dose. The injection mimics a hormone called GLP-1, suppressing appetite and reducing calorie intake. Weight loss, initially a side effect for diabetics, soon became the main attraction for non-diabetic users.

The Ozempic Peak: The drug’s popularity skyrocketed after celebrities like Elon Musk credited it for weight loss, and Oprah Winfrey resigned from Weight Watchers after revealing she too used Ozempic. TikTok was flooded with dramatic before-and-after videos, fuelling demand and causing a global shortage. Critics say this trend raises ethical concerns: should life-saving drugs be co-opted for cosmetic purposes?

The Legal Backlash: Now, the hype has a dark side. More than 1,800 lawsuits have already been filed in U.S. courts against Ozempic’s maker, Novo Nordisk, with analysts warning liabilities could exceed $2 billion—one of the biggest drug safety battles in years. Patients allege serious side effects, including severe gastrointestinal issues, gallbladder complications, sudden vision loss, pancreatitis, and kidney damage.

What Comes Next: Novo Nordisk insists Ozempic is safe when used as prescribed, but critics argue risks were downplayed as sales surged. As of August 2025, litigation remains in the discovery phase. If Novo Nordisk is found liable, damages could include medical costs, lost wages, and punitive fines. Once hailed as a miracle shot, Ozempic now faces its toughest test in the courtroom.

SoftBank invests in Intel: SoftBank Group is investing $2 billion in Intel, buying about 87 million shares at $23 each and making the Japanese firm Intel’s sixth-largest shareholder. Intel has faced significant losses and delays, with its share price dropping over 50% since last year due to struggles in the AI market dominated by Nvidia. Meanwhile, the Trump administration is discussing taking a 10% stake in Intel, in a deal that could see the U.S. government become the chipmaker’s largest stakeholder.

Gaza ceasefire proposal: Qatar confirms that Hamas has agreed to a Gaza ceasefire proposal led by Qatar and Egypt, which includes a 60-day truce and prisoner exchange, but Israel has not officially responded. Israeli attacks on Gaza continue, killing dozens since dawn.

Kim Jong Un nuclear build-up: North Korean leader Kim Jong Un has threatened to accelerate the expansion of his country’s nuclear arsenal, condemning ongoing United States-South Korea military exercises as a sign of “hostile intent”, according to state media.

Kota-Bundi airport approved: The Centre has approved a new ₹1,507 crore airport for Kota-Bundi, Rajasthan. To be built on 440.06 hectares, it will feature a 3,200m runway and a 20,000 sq. meter terminal that can accommodate 1,000 passengers at peak and handle 2 million passengers annually.

Gaming bill cleared: The cabinet has approved a bill to promote e-sports and online social games while making online betting a punishable offence. The legislation makes offering, advertising, or funding bets an offence, with tougher repeat penalties.

ChatGPT’s desi avatar: OpenAI has launched “ChatGPT Go” in India at ₹399/month—its most affordable plan yet. Aimed at students and casual users, it offers faster responses and priority access compared to the free tier.

Opposition’s VP pick: The INDIA bloc has named ex-Supreme Court judge B. Sudershan Reddy as its Vice Presidential candidate, set to contest against the NDA’s nominee, CP Radhakrishnan, in the upcoming election.

SKY to lead: The BCCI has appointed Suryakumar Yadav as captain for India in Asia Cup 2025, with Shubman Gill to deputise as vice-captain.

THAT’S ALL FOR TODAY!

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