All you need to know about business, economy and finance before you start your day
Good morning! Last week we reported how Donald Trump went Super Saiyan on the newly appointment Intel CEO Lip-Bu Tan sharing that he “is highly CONFLICTED and must resign, immediately”. Shockingly enough, Trump seems to have changed his mind. We’re shook … this never happens. In a week’s time Lip-Bu has managed to become an “Amazing success story and a great guy” per Trump’s most recent post on Truth Social. This comes right after they both met at the White House to ensure Intel’s commitment to strengthening U.S. technology and manufacturing leadership.
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 6 mins.
Markets 🔔🐂🐻
As of the Indian market close on Aug 12th
Dalal Street had a classic case of Tuesdays, swinging between gains and losses before ultimately ending in the red. The main spoilers for the party? Banking heavyweights like HDFC and ICICI which pulled both the Sensex and Nifty down.
Culture and Trends
India’s love affair with Korea: From K-POP to MBAs
Image credits: The Hindu
Most viral trends fade with time - a holiday hotspot loses its sparkle, a food fad gets replaced, or a chartbuster song drifts into nostalgia. But Indians’ love for all things Korean? That’s one obsession that’s only deepened over the years. The roots of this craze go back to 2012, when PSY’s Gangnam Style became a global anthem. That quirky horse dance didn’t just dominate playlists, it cracked open the door for Korean pop culture in India. In its wake came megastar groups like BTS, Blackpink, EXO, and Seventeen, whose music, fashion, and fan culture have found a devoted base across Indian cities and small towns alike. K-dramas soon followed.
Food won us over: It started subtly - a ramen packet here, a kimchi jar there - but Korean cuisine’s rise in India has been nothing short of phenomenal. According to Swiggy’s latest data, orders for Korean food have surged 50% year-on-year (July 2025 vs. July 2024) nationwide. While metros like Bengaluru, Mumbai, and Hyderabad remain top consumers, non-metros such as Surat, Thiruvananthapuram, Vadodara, Mysuru, and Mangaluru have seen a stunning 59% jump. Gen Z is leading the charge, making up 27% of all Korean food orders on the app.
… and led us to MBAs? The Korean influence isn’t stopping at K-pop playlists and fried chicken joints. It’s reshaping education choices! While the US, UK, Canada, and Australia still dominate the MBA study-abroad wishlist, South Korea is emerging as a serious contender. Indian students are joining in great numbers — from fewer than 500 in 2008 to over 1,300 in 2022. For graduates, the payoff is direct access to corporate giants like Samsung, LG, Hyundai, and POSCO, as well as a booming startup ecosystem in fintech, AI, gaming, and e-commerce.
Road ahead: From our dining tables to our career aspirations, Korea’s presence in Indian life doesn’t is no passing phase, it’s a cultural and economic phenomenon.
Economy
Trump’s tariffs: A multi-sector shockwave
Image credits: Business
When former RBI governor Raghuram Rajan says, “It’s hard to negotiate with a gun to your head,” you know things are tense. His comment comes on the back of US’s steep 50% tariff on Indian exports, a punishment for New Delhi for continuing to import oil from Russia. India now shares the top spot with Brazil on Trump’s tariff list. The timing couldn’t be worse - negotiations for a trade deal were nearing conclusion when Trump called India’s economy “dead” and its tariff barriers “obnoxious.” The duties, set to take effect in 21 days, leave little time to salvage talks.
Ripple Effect on Key Exports: The US is India’s largest export market, accounting for nearly 20% of merchandise exports and 2% of GDP. The new tariffs hit sectors like diamond polishing, shrimp, home textiles, carpets, ready-made garments, chemicals, agrochemicals, capital goods, and solar panel manufacturing.
Diamond polishing: US accounts for ~25% of the total revenue. The tariffs along a reduced demand plus increasing inclination towards lab grown diamonds is expected to heavily impact the sector.
Shrimp: US accounts for ~50% of India’s shrimp exports. The sector operates as a thin operating margin, and is now competing against Ecuador which is facing lower tariffs.
Home textiles, carpets: While the US market accounts for ~40% of total revenues, exports have some tariff advantage with the next biggest exporter being China - but revenues/margins will decline.
Ready-made garments, chemicals, agrochemicals: Exports to the US which account for 5-15% of total revenue will be heavily impact in the face of stiff competition from countries like China and Vietnam.
Telecom Turns Inward: Amid tariff tensions, India’s government is nudging private telcos toward locally made equipment, signalling a shift toward self-reliance. The Department of Telecommunications (DoT) has asked operators to voluntarily increase domestic sourcing, with a potential mandate if targets aren’t met.
The Road Ahead: Trump’s tariffs are a stress test for India’s export resilience, farm policy coherence, and industrial self-reliance. Some sectors will pivot to new markets; others may need government support to survive the cost shock.
Business India: Dhanda Hai Yeh!
Image credits: Mint
Inflation cooling off: Retail inflation dropped to a surprising 8-year low of 1.55% in July (well below the RBI's 2-6% target band), driven by cooling food prices, which saw a -1.76% dip. This gives the Reserve Bank of India more breathing room for future economic support.
Oil Swap: India is swapping palm oil for soyoil, with soyoil imports expected to hit a record 5.5 million tons this year. Why the change? Soyoil is cheaper, leading to a 13.5% drop in palm oil purchases, to a five-year low.
Chips chips and more chips: The Cabinet greenlit four new semiconductor projects worth ₹4,600 crore, with plants in Odisha, Andhra Pradesh, and Punjab to boost India's chip-making goals.
Ahoy, the new ports bill: The Lok Sabha has passed the Indian Ports Bill, 2025, replacing a colonial-era 1908 law. This bill aims to modernise India's maritime sector by cutting logistics costs, boosting trade efficiency through digitalisation, and promoting sustainability.
World 🌏
Pay to Play: Trump allows Nvidia to sell chips to China for 15% cut
Image credits: The Week
U.S. President Donald Trump has upended decades of national security policy, creating a new category of corporate risk, by striking a deal with Nvidia to give the U.S. government a 15% cut of its sales in exchange for resuming exports of banned AI chips to China. Historically, export controls on sensitive technologies were non-negotiable - companies could not pay their way around national security restrictions. On Monday, Trump signaled an end to that era, extending the same arrangement to AMD and suggesting he may allow Nvidia to sell scaled-down Blackwell chips to China (30% to 50% weaker than the original). The H20 chips had been banned by his own administration months earlier, before the July reversal, which officials linked to rare earths negotiations. Lawmakers in both parties condemned the move, warning it risks establishing a “pay-for-play” precedent.
Legal ‘Gray Zone’ :The legality of the deal is murky. The U.S. Constitution prohibits Congress from levying taxes on exports, but it’s unclear if this “revenue-sharing” counts. Nvidia said it complies with all U.S. rules and hopes export controls will allow America to “compete in China and worldwide.” AMD confirmed it had received approval for some AI processor exports but did not comment on revenue-sharing.
‘Slippery Slope’ for U.S. Exports: Analysts warn the levy could cut chipmakers’ gross margins on China-bound processors by 5–15 percentage points, reducing Nvidia’s and AMD’s overall margins by about a point.
DuniyaDIARY 🌏📒
Image credit: CNBC
Mediterranean on Fire: Scorching heatwaves and wildfires are ravaging Spain, Portugal, Greece, Turkey, and the Balkans, forcing thousands to evacuate as flames race through forests, farms, and coastal hillsides under relentless 40°C+ temperatures.
Trump Deploys Troops to D.C.: President Trump has ordered 800 National Guard troops to Washington, temporarily taking control of the city’s police in an unprecedented federal move. Citing a need to curb violent crime — despite recent declines — Trump bypassed local leaders, marking his second troop deployment to a Democrat-led city this summer (the first being LA in June).
90-Day Tariff Timeout: The U.S. and China have extended their tariff truce until November 10, delaying steep new duties as both sides maintain existing trade terms ahead of the holiday retail rush.
South Africa to Revise U.S. Trade Deal Offer: South Africa will present a new proposal to Washington to reduce the steep 30% tariffs imposed by President Trump last week. After months of failed negotiations, the country now faces the highest U.S. tariff rate in sub-Saharan Africa on its exports.
Pakistan Welcomes: Pakistan’s Foreign Ministry has welcomed Washington’s decision to label the Balochistan Liberation Army (BLA) and its Majeed Brigade faction as a Foreign Terrorist Organisation. The separatist group has long sought Balochistan’s independence, accusing Pakistan of resource exploitation, human rights abuses, and the 1948 forced annexation of the region.
Tariffs Turn Acai into a Costly Treat: U.S. tariffs of 50% on Brazilian acaí exports have thrown the industry into turmoil—exporters report suspended orders, plummeting sales, and mounting losses, as the berry faces a glut in Brazil and rising prices for American consumers
Swifties sabotage the saboteurs.: Taylor Swift officially announced her 12th studio album, The Life of a Showgirl, via Travis Kelce’s New Heights podcast on August 12th at 12.12am - clearly making a point. A full tracklist and album cover allegedly leaked online ahead of the announcement. Fans mobilized in response and flooded the internet with decoys to thwart the leak.
Aur Batao 📰
India-Pak diplomatic drama: Pakistan has reportedly cut off gas, water, and even newspaper deliveries to Indian diplomats in Islamabad, prompting India to consider retaliatory measures. This petty retaliation follows Operation Sindoor and India's stance on the Indus Waters Treaty.
India-Zambia trade pact: India and Zambia have inked a deal to boost trade between their cooperatives, part of a larger plan to strengthen India's cooperative export system globally.
SEBI targeting foreign investors: SEBI is simplifying rules for foreign investors, aiming to cut compliance headaches and attract more long-term capital. A new SWAGAT-FI framework will also make it easier for low-risk funds to enter the Indian market.
China’s rail-ly annoying New Delhi: China is building a new railway linking Xinjiang and Tibet, running through disputed Aksai Chin and near the LAC. The ambitious project will significantly boost China's ability to mobilise troops, giving New Delhi major strategic heartburn.
Record cricket viewership: The India-England Test series smashed digital viewership records, with over 170 million fans tuning in on JioHotstar. The final day alone hit a peak of 13 million viewers, making it the most-watched Test series online.
Historic para games: India is gearing up to host its first-ever World Para Athletics Championships from September 27 to October 5, with a record 107 nations participating. India will field its largest contingent of nearly 100 athletes.
