Newsletter Edition: June 23, 2025

Good Morning India 🇮🇳 
Another Monday, another week - let’s get into the dispatch!

Business 🏡
Labubu: The Economy of being ‘cute’

In a world that often feels overwhelming, “cute” has become more than just a feel-good emotion; it’s an economic engine. The power of small joys has evolved into a full-blown industry, driven by collectables, nostalgia, and aesthetic design.

Labubu: The New Kawaii King?
Originally a character in Kasing Lung’s 2015 story series The Monsters, Labubu shot to fame after Chinese toy giant Pop Mart began retailing it in blind boxes in 2019. By 2023, key rings followed, and global stars like BLACKPINK’s Lisa were spotted flaunting them. In 2025, the craze boiled over: stores in the UK and South Korea suspended sales after in-store brawls broke out. Yet, the chaos only amplified demand, and now the merchandise from The Monsters universe has now earned over $419 million globally.

Hello Kitty: The Original Icon
Created in 1974 by designer Yuko Shimizu for Japanese firm Sanrio, Hello Kitty debuted on a simple vinyl coin purse. Her silent charm (yes, she has no mouth) turned her into a global symbol of innocence and charm. Today, she anchors an $80 billion empire, from lunchboxes and couture collaborations to entire theme parks.

What makes this so appealing?
For many, it's a gentle companion through stress, even reminding them of old trips or comforting memories. Experts call this wave of cuteness a form of “emotional luxury” or “recession luxury” It’s not about flaunting money; it’s about finding joy, softness, and something to hold onto. 

In a fast-paced world, sometimes all we seek is the comfort of something familiar. The Labubu doll and Hello Kitty isn’t just cute, it’s a reminder that even in grown-up chaos, there’s room for wonder, warmth, and a little magic you can carry in your hand. 

Economy 📈🇮🇳
India's Growth Story: Big Economy, Small Wallets? 

What’s Happening?  
India is already the 5^th largest economy and is set to overtake Japan soon. But, the catch is, a recent report by Llama Research points out that despite this impressive growth, the average person's income (or per capita GDP) is lowest among the top 10 economies. This report emphasises that India's next big goal, the 'Viksit Bharat' vision 2047, really needs to focus on boosting individual prosperity. 

What does it mean?  
It means that India’s economy is booming, but it isn’t translating into bigger slices of the pie for everyone yet. If we want to achieve the ‘Viksit Bharat’ 2047 goal (being a fully developed nation) then we need to sustain roughly 8% annual growth for the upcoming decades, ensuring this growth genuinely improves every citizen's life, not just the national numbers. This needs inclusive growth, fuelled by scaling up manufacturing, increasing digital adoption, and a rise in income levels across different segments.

The Big Picture 
India has come a long way from being considered one of the 'Fragile 5' economies in 2013 to becoming one of the fastest-growing major economies globally. However, a per capital income of ~$12,000 (on a purchasing poverty parity basis), places India in the lower-middle-income category globally, reflecting a dichotomy between its status as a major world economy and the average income of citizens.

BUSINESS INDIA
DHANDA HAI YEH!

• India’s Forex Party: India's foreign exchange reserves climbed by $2.29 billion, hitting $698.95 billion in the week ending June 13. Foreign currency and gold gains drove a nearly $7.5 billion rise in two weeks. The current rise comes amid steady capital inflows and lower crude oil prices.  

• Amazon home diagnostics: Amazon India launched "Amazon Diagnostics," offering convenient at-home lab tests across six major cities (Bengaluru, Delhi, Gurgaon, Noida, Mumbai, and Hyderabad), covering over 450 PIN codes.  

• Coffee exports rise: With the blessings of global coffee lovers, India’s coffee exports have jumped 125% in 11 years to $1.8 billion, reaching $1.28 billion by 2023-24. Europe remains the key export hub.  

• Combatting digital fraud: RBI, in collaboration with major public and private banks, are developing a Digital Payment Intelligence Platform (DPIP) to curb digital frauds and facilitate real-time intelligence sharing and gathering.

Iran - Israel - US conflict: Strait of Hormuz

What Happened? 
In a dramatic turn, the US dropped 30,000-pound bombs on Iran’s nuclear sites, Fordow, Natanz, and Isfahan joining Israel’s fight. Trump says more strikes will follow if provoked. Global leaders call for calm amid rising geopolitical tensions. In response, the Iranian Parliament has reportedly approved a measure to close the Strait of Hormuz, a critical global oil choke point. The Strait of Hormuz is a narrow, 33-km-wide corridor through which one-fifth of the world’s oil and gas flows. 

Why It Matters? 
This waterway is crucial for oil exports from major Gulf nations like Saudi Arabia, Iraq, Iran, and Kuwait. Today, the biggest impact of a closure would hit Asia and China, not the West. For India, nearly 2 million barrels/day of crude passes through this strait. With diversified import sources like Russia, the US, and Brazil, analysts believe India can manage the shock, though prices may spike near-term, possibly up to $80/barrel. 

WORLD: BUSINESS AND GEOPOLITICS 🌍
KYA CHAL RAHA HAI?

• 16 Billion logins exposed in massive data dump: Cybernews found 16 billion login credentials spread across 30 datasets, touching everything from Google and Apple to Telegram. While it’s not a brand-new breach, it's a risky remix of old and fresh data. Experts have urged to reset passwords and enable 2 Factor Authentication. 

• Putin calls Ukraine “Ours”: Putin now says, “the whole of Ukraine is ours” and hinted troops could enter Sumy next. Kyiv fired back, calling it a land grab, reminding the world that Russia’s claims over Crimea and four regions are illegal, and Ukrainians aren’t “one people.” 

• Texas to Tesla: Not So Fast on Robotaxis:  Ahead of Tesla’s Robotaxi launch in Austin, Texas passed a new law requiring permits for driverless cars, starting Sept 1. The trial includes just 10–20 Model Ys, only in safe zones, with safety monitors inside, no kids under 18, and no bad-weather driving. Officials can pull the plug if safety is at risk. 

• South Korea rolls out $22 Billion stimulus: President Lee Jae Myung has unveiled a 30.5 trillion won ($22.1B) stimulus to jumpstart South Korea’s economy. All citizens get at least 150,000 won via coupons; 90% will get another 100,000 won later. The package prioritises growth and fairness amid a sharp economic slowdown.  

• New HIV shot promises a big break: The FDA just greenlit ‘Yeztugo’ - Gilead’s twice-a-year HIV prevention shot that cut infection risk by up to 96% in trials. But at ~$14k per injection, and amid U.S. budget cuts, insurance battles, and racial disparities in access, rollout may face big hurdles. Still, advocates say it’s the best chance in 44 years to truly end the HIV epidemic, if it’s made affordable and easy to get. 

Aur Batao: News from across India 📰

• Amit Shah has declared that India will “never” restore the 1960 Indus Waters Treaty, calling Pakistan’s share of water “unjustified.” Pakistan earlier echoed the sentiment that such a move was ‘cowardly and illegal’.  

• India Expands Iran Evacuation to Help Nepal, Sri Lanka Too: With tensions flaring from Israeli strikes, India’s Operation Sindhu has flown 517 citizens home from Iran so far. Now, after requests from Nepal and Sri Lanka, Indian Embassy will evacuate nationals from these countries as well. 

• Two held for sheltering Pahalgam attackers: The National Investigation Agency (NIA) has arrested Parvaiz Ahmed and Bashir Jothar on suspicion of harbouring three armed Lashkar-e-Taiba terrorists before the Pahalgam attack that killed 26 and injured 16. Further investigations are going on. 

• States told to log Waqf properties digitally: The Centre's UMEED portal, launched on June 6, mandates all Waqf properties be geo-tagged and uploaded within six months.

• Air India begins ‘₹25 Lakh’ interim relief for crash victims: Following the June 12 crash in Ahmedabad, Air India has started distributing ₹25 lakh as interim relief to victims’ families; three have received it so far, with more in progress. The airline has set up a dedicated help desk.

Sports and Entertainment

• Indian hockey team creates undesirable record: The mens Indian hockey team slumped to a 7^th consecutive defeat after losing 3-6 to Belgium in their last FIH Pro League encounter. The biggest losing streak so far.

• Blue tigresses roar: The Indian Women’s football team will kick off the AFC Asian Cup 2026 qualifiers in Thailand on June 23 versus Mongolia. They are eyeing a historic qualification via the qualifiers.   

• India’s Golden Dangal: Indian wrestlers dominate the Asian under-23 championships with five gold medals and a silver. With this, they top the freestyle and women's categories. 

• Drishyam 3 gets release date: Prepare your October memes, as Drishyam 3 will be released in October 2025. Malayalam superstar Mohanlal is set to reprise his role as Georgekutty in the third instalment.  

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