All you need to know about business, economy and finance before you start your day
Good morning! It’s 10p.m … your neighbourhood friendly under-eye bags are back for their nightly visit, but guess what? You are on-trend my friend. The latest makeup obsession thats slaying in the world of GenZ trends is ‘Tired Girl’ - celebrating the look of not having been to bed. In what is now a TikTok category, with numerous tutorials and hundreds of thousands of views, eye bags are chic because you actually have to work for them. We have to say, we’re high key excited about this one, specially since we’re now on trend everyday. No cap.
In other news, ICICI bank has rolled back their decision to increase minimum balance to ₹50K for new customers. Probably because we roasted them here.
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 5.5 mins.
Markets 🔔🐂🐻
As of the Indian Market close on Aug 13th
A green day for the Indian stock market, with both Sensex and Nifty posting significant gains. The rally was led by auto and financial stocks, spurred by softer inflation in both the US and India, which bolstered hopes for a Fed rate cut.
Read on for other not so great news about the Indian market in the Business India section.
Economy
Retail inflation at record low, but real life still pinching
Image credits: India Today
India’s retail inflation slipped to an eight-year low of 1.55% in July, placing it among the most stable economies globally. The fall, driven by sharp corrections in food prices, marks a statistical milestone. The sharp decline came on the back of steep price drops in high-weight food items such as vegetables, pulses and spices. Tomatoes, onions, and potatoes alone fell by over 34%, pushing the Consumer Food Price Index (CFPI) into deflationary territory at -1.76% from -1.01% in June. For policymakers, these numbers signal success, especially as many economies are still struggling with inflation rates above 3–4%. For families, though, the cost of living tells a different story.
What’s your baseline? Much of the dramatic fall can be traced to the “base effect”. Inflation is calculated year-on-year, and July 2024 saw unusually high food inflation. Comparing today’s prices to that elevated base makes the current reading look exceptional. On a sequential basis, vegetables saw a seasonal lift, while pulses and cereals decelerated. Refined core inflation, excluding energy and gold, slipped to 3.1%, aided by a base effect in transport and communication and easing education costs. Personal care and healthcare, however, edged up.
Core pressures remain: Economists caution that categories households cannot easily avoid remain costly - education, health, and transport & communication remain sticky, indicating ongoing core inflation pressures. Part of the disconnect lies in the CPI’s structure. Today, urban households spend far more in categories with higher inflation that the index under-represents.
Why relief feels distant: Even with softer inflation, low real wage growth (avg. 4–7% after adjusting for inflation and taxes) is limiting household relief. EMIs and debt servicing, both of which have risen sharply over the past decade, eat into disposable income. Household savings have fallen to a record low of 18% of GDP, while lifestyle inflation from private schooling, healthcare, and technology upgrades adds further strain.
The road ahead: Economists will watch if core inflation eases in the coming months. For now, the headline figure is a historic low on paper, but pressures in non-food essentials mean many households have yet to feel the difference.
Retail and E-Commerce
Luxury isn’t falling behind on e-commerce
Image credits: Sabyasachi
Luxury retail, traditionally associated with high-end boutiques and personalised in-store experiences, is increasingly shifting towards online channels. Over the past five years, luxury brands have expanded their e-commerce presence, launched digital-first collections, and partnered with online marketplaces. According to Bain & Company’s 2024 Luxury Goods Worldwide Market Study, online sales of personal luxury goods now account for nearly 25% of the global market, up from 12% in 2019.
Why it’s happening: Several factors are driving this shift. First, younger demographics, particularly Millennials and Gen Z, are showing greater comfort in making high-value purchases online. Second, the COVID-19 pandemic accelerated digital adoption across sectors, forcing even the most heritage-driven brands to invest in virtual storefronts. Third, advances in technology, including augmented reality (AR) try-on tools, personalised recommendation algorithms, and secure payment solutions, have improved consumer confidence in purchasing luxury items digitally. Rising affluence in emerging markets has also contributed. Additionally, the convenience of home delivery, coupled with faster shipping and enhanced return policies, has reduced traditional barriers to buying luxury goods online.
Approach by brands: Luxury labels are responding with a mix of strategies. Many are developing proprietary e-commerce platforms to maintain brand control, while others are collaborating with luxury-focused marketplaces such as Farfetch, Net-A-Porter, and Tmall Luxury Pavilion. Virtual fashion shows, livestreamed product launches, and AR shopping tools are becoming commonplace. Brands are also investing in data analytics to personalise marketing and improve customer retention.
Way ahead: Industry analysts expect online luxury sales to continue expanding, potentially reaching 30% of the market by 2030. However, experts caution that maintaining exclusivity and brand integrity will remain critical.
Business India: Dhanda Hai Yeh!
Image credits: CNBC
Mahindra’s UK roadmap: Thanks to the new India-UK free trade agreement, Mahindra is gearing up to export its electric vehicles to the UK. The company anticipates that EVs will constitute 30% of its overall sales by 2030 and is leveraging its UK-based design centre for its electric lineup.
India’s uranium goes private: India is set to end the state's 75-year monopoly on uranium, planning to allow private companies to mine the nuclear fuel. This radical policy shift is essential to fuel the nation's goal of expanding its nuclear power capacity twelvefold by 2047.
Improvement in India-China relations? In a significant sign of thawing relations, China has eased its urea export curbs for India, a move influenced by mutual trade friction with the US. India, the world's top importer, is expected to receive up to 300,000 tons. India's needs considerable imports to ensure consistent urea fertiliser availability for farmers since domestic production does not meet demand.
From most to least favoured market: A BofA survey reveals India's stock market has plunged from Asia's most favoured to least preferred in three months. The reason? New US tariffs from Trump and concerns over Russian oil purchases are leaving 30% of fund managers underweight on India.
World 🌏
Survival stress: Picture that with a Kodak
Image credits: CNN
Eastman Kodak, the 133-year-old pioneer photography company, has warned investors it may not be able to continue operations, citing a lack of committed financing or sufficient liquidity to meet about $500 million in upcoming debt obligations. In its latest earnings report, the company said these conditions “raise substantial doubt” about its ability to remain a going concern. Shares of Kodak fell more than 25% following the announcement.
A history of boom to bust: Founded in 1892, Kodak traces its origins to 1879, when George Eastman secured his first patent for a plate-coating machine. In 1888, the company introduced its first consumer camera. Kodak dominated the US market through much of the 20th century, at one point controlling 90% of film and 85% of camera sales. However, Kodak’s market position began to erode with the advent of digital photography — a technology it helped invent in 1975 but failed to commercialize effectively. This misstep, coupled with declining film sales, led to its 2012 Chapter 11 bankruptcy filing, in which it listed debts of $6.75 billion and about 100,000 creditors.
Diversification: Kodak has since diversified, continuing to produce film and chemicals for industries including filmmaking, while licensing its brand for consumer products. The company has said it aims to expand that pharmaceuticals business, even as it manages its current financial challenges.
Some-achaar: Today’s most shareable plates
Ronaldo Rocks Saudi Norms: Cristiano Ronaldo and Georgina Rodríguez's engagement is a huge deal in Saudi Arabia as it effectively forces a re-evaluation of the kingdom's strict social laws, signalling a significant cultural shift.
Today’s AI Kool-aid by billionaires: Sam Altman predicts that by 2035, college grads could land high-paying jobs exploring space. Meanwhile, Bill Gates envisions AI shrinking the workweek to just two or three days. Adding to the hype, Mark Cuban forecasts that AI will create the world's first trillionaire.
An Earth without Oxygen … but not anytime soon: NASA warns that Earth's oxygen could vanish in about 10,000 years, a "great deoxygenation" caused by the warming Sun. Though distant, this process could accelerate once it begins, leaving a methane-rich planet fit only for microbes.
DuniyaDIARY 🌏📒
Image credits: CNN
Trump vs. Goldman CEO: Days after Goldman Sachs economists said higher tariffs would mostly burden consumers, U.S. President Donald Trump criticized the bank’s CEO, David Solomon, in a Truth Social post. Trump rejected the link between tariffs and inflation, suggesting Solomon “get a new economist” or “focus on being a DJ.”
U.S. Tracks High-Risk AI Chip Shipments: Reports suggest authorities are covertly placing location devices in select chip shipments to detect illegal diversion to China, indicating Washington’s deepening efforts to enforce export curbs despite recent moves to ease some restrictions.
China Pushes Loan Subsidies: Beijing plans interest subsidies for households and businesses to cut borrowing costs and drive domestic consumption, as U.S. tariff pressures fuel calls for a shift from debt-led growth.
Perplexity AI Chrome browser bid: Perplexity AI has made a $34.5 billion unsolicited offer to buy Google’s Chrome browser, aiming to gain an edge in AI search. The bid comes amid US antitrust pressure on Google, with a court ruling expected soon. Perplexity, valued at $14 billion, has yet to disclose full funding details.
Altman’takes on Musk’s Neuralink: Sam Altman is launching Merge Labs, an $850 million brain-computer interface startup, potentially funded by OpenAI's ventures arm, setting up a direct challenge to Elon Musk's Neuralink amid their ongoing public rivalry.
Aur Batao 📰
Shift in India’s oil strategy? With Russian oil discounts drying up and US tariffs doubling, India is rekindling its old flame with West Asian suppliers like Saudi Arabia and the UAE.
India’s Commonwealth plan: India is officially bidding to host the 2030 Commonwealth Games, a move formally approved by the Indian Olympic Association.
War games amid Trade wars: Brushing off tariff spats, India and the US are teaming up for their largest-ever "Yudh Abhyas" military exercise in Alaska this September. Over 400 Indian troops will join, and the US will showcase its amphibious Stryker vehicle.
Rajini Mania: The "Coolie" craze is peaking. For Rajinikanth's new film, releasing August 14, some offices in Singapore and India are handing out free tickets and declaring holidays.