Handpicked updates about India’s business and the business of India
Good morning! In today's episode of 'Did they really just say that?', Secretary of Defense Pete Hegseth is worried the US Army needs a slim-down, literally. Apparently, he is really tired “looking out at combat formations… and see[ing] fat troops” and “fat generals and admirals in the halls of the Pentagon”, leaving many questioning if strategy now hinges on waistlines. Critics point out that “obese” or “unfit” would have been preferred terms, while “fat” is highly subjective and socially loaded. Whether this is a health initiative or an exercise in absurdity, the Pentagon’s top brass seem to have their plates full already.
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 6 mins.
Markets 🔔🐂🐻
As of the Indian market closed on Sept 30th.
The Indian stock market's losing streak extended to an eighth consecutive session on Tuesday, with the Sensex and Nifty 50 under pressure. The decline was driven by ongoing foreign capital outflows, US tariff concerns, and caution ahead of the RBI policy decision.
Geopolitics
Gaza Peace Plan And Israel’s Call To India
Image credits: AP News
Trump’s Peace Proposal At A Glance: U.S. President Donald J. Trump has unveiled a 20-point roadmap to end the Israel-Gaza conflict. Central to the plan are a ceasefire, structured hostage exchanges, and Israel’s conditional withdrawal to agreed lines. Key elements include prisoner releases, the demilitarization of Hamas, and Gaza’s governance by a technocratic Palestinian committee overseen by an international body — the Board of Peace — co-chaired by Trump and former UK Prime Minister Tony Blair.
Reconstruction And Economic Revival: The proposal envisions substantial international aid, creation of a special economic zone, and freedom of movement for Gazans who wish to leave and return, pairing economic revival with infrastructure rebuilding for long-term stability.
Security And Stabilization Measures: An International Stabilization Force (ISF) would deploy in Gaza to train police, guard borders, and oversee demilitarization. The plan mixes incentives with strict security measures, including “terror-free zones” if Hamas fails to comply.
Deadlines And Reactions: Trump has set a tight 3–4–day deadline for Hamas to respond. While Israel has expressed conditional support, critics point to feasibility challenges, potential Hamas backlash, and questions of Palestinian legitimacy. Observers are watching to see whether this ambitious roadmap can translate into reality.
Israel Looks To India: Israel has invited India to take a leading role in rebuilding Gaza, describing it as a reliable partner with proven expertise in large-scale infrastructure. The move aims to leverage India’s capacity for fast, high-quality execution and could redefine economic and diplomatic ties in the region. Beyond reconstruction, India’s engagement could enhance bilateral relations, build goodwill in Middle East diplomacy, and position India as a go-to partner in international development — marking a shift from observer to active player in post-conflict rebuilding.
Opportunities And Challenges Ahead: While the invitation is promising, security concerns, coordination with multilateral agencies, and political sensitivities will require careful handling. Yet the potential payoff—economically, diplomatically, and strategically—is significant.
Business & Economy
Textile Industry Weathers Trump’s Tariffs
Image credits: TOI
India’s Textile Sector At A Glance: India’s textile and apparel industry continues to strengthen its position as a global manufacturing hub. The sector remains a major contributor to employment and export revenue, blending traditional weaving with modern garment factories, and showcasing resilience amid global economic uncertainties.
Headwinds From Trump’s Tariffs: The outlook dimmed in August 2025 when the U.S. imposed a 50% tariff on Indian textile and apparel exports, combining a 25% penalty linked to discounted Russian oil purchases with an existing 25% duty. Some categories face steeper rates — 63.9% for knitted apparel and 60.3% for woven — disadvantaging Indian exporters against rivals like Bangladesh and Vietnam. To ease pressure, the Indian government suspended the 11% import duty on cotton until September 30, 2025. Exporters are also exploring alternative markets and strategies, while policy support aims to stabilize the industry.
Future Outlook: Despite near-term tariff headwinds, analysts expect sustained growth over the next decade. With strategic investment, technology adoption, and a pivot to sustainable, higher‑value products, India is set to strengthen its position in the global fashion and textile supply chain.
Business India: Dhanda Hai Yeh!
Image credits: India Today
$100k USD Gamble on Immigration: President Trump's new $100,000 fee on new H-1B visa applications has drawn sharp criticism from employers and policymakers. While intended to prioritise high‑paying roles and curb outsourcing, opponents warn it could disadvantage startups, research institutions, and healthcare that rely on access to global talent. Legal challenges are anticipated, and some experts caution that the new rules could accelerate the relocation of high-value work to India, where firms are already expanding global capabilities. The effectiveness of these measures remains uncertain.
MNRE Tightens Solar Import Oversight: The Ministry of New and Renewable Energy (MNRE) is set to implement a dedicated import monitoring system for solar energy equipment to track the origin, content, and compliance with harmonized codes. The move aims to bolster domestic manufacturing and promote Indian‑made cells and modules in schemes such as PM Surya Ghar and PM‑KUSUM.
Walking the Fiscal Deficit Tightrope: India’s fiscal deficit reached ₹5.98 lakh crore in April–August 2025, accounting for 38.1% of the full-year target of ₹15.7 lakh crore. This marks an increase from 27% during the same period last year. Higher government spending, including a 38.5% increase in capex, and softer net tax receipts drove the increase. The government still targets a 4.4% deficit-to-GDP in FY26, down from 4.7% in FY25
Pharma Exports Poised To Pass $30B: India's pharma exports, valued at approximately $27.8 billion, are projected to exceed $30 billion by end–2025, according to Union Minister Jitendra Singh. Despite a 100% U.S. tariff on pharmaceutical drugs effective October 1, Singh remains optimistic, highlighting India's global standing as the third-largest exporter by volume and 14th by value, buoyed by advances such as the first DNA COVID-19 vaccine. The domestic market is forecast to double from $60 billion to $130 billion by 2030.
Ozempic Cleared For India: Novo Nordisk has secured approval from the Central Drugs Standard Control Organisation (CDSCO) to launch Ozempic (semaglutide) in India. The once‑weekly injectable for type 2 diabetes, widely used for weight management, enters a fast‑growing anti‑obesity market valued around ₹752 crore, intensifying competition.
World 🌏
ChatGPT Enters E-Commerce, Adds Instant Checkout
Image credits: WIRED
A Radical Shift In Online Shopping: OpenAI has unveiled a groundbreaking feature allowing ChatGPT users to buy products directly within the chat. By enabling in‑chat transactions, OpenAI steps into the e‑commerce arena, marking not only a radical shift in e-commerce but also directly challenging search engines like Google and established online marketplaces.
Seamless Shopping via Partnerships: The feature leverages partnerships with Shopify and Etsy, allowing users to browse, select, and pay for items without leaving ChatGPT, using Apple Pay, Google Pay, Stripe, or standard credit cards. This streamlined flow reduces friction, pairing recommendations and product queries with instant checkout.
The Tech Behind The Experience: The system runs on an open-source “agentic commerce” protocol developed with Stripe, designed for secure, efficient transactions and minimal data collection. OpenAI emphasizes that users maintain consent over purchases and that the platform collects minimal information, a critical consideration in an era increasingly concerned with digital privacy. The integration demonstrates AI moving beyond information retrieval to executing actionable tasks with user preferences at the core.
Market Impact & Reactions: Shares of Etsy and Shopify rose on the news. Analysts say AI‑powered, integrated shopping could reshape consumer behaviour and push traditional marketplaces to innovate, offering faster paths from discovery to delivery.
DuniyaDIARY 🌏📒
Image credits: Rolling Out
AI Infrastructure Demand Grows: CoreWeave and Meta signed a $14.2 billion agreement for AI cloud computing infrastructure through December 2031, with an option to extend into 2032. The deal highlights escalating demand for AI infrastructure and broadens CoreWeave’s client mix beyond Microsoft. Shares of CoreWeave rose about 15% after the announcement, reflecting investor confidence.
Citigroup Projects Big Tech’s $2.8T AI Spend By 2029: Citigroup raised its forecast for Big Tech’s AI infrastructure spending to more than $2.8 trillion by 2029, up from $2.3 trillion. The adjustment points to early, aggressive hyperscaler investments by Microsoft, Amazon, and Alphabet, and growing enterprise adoption. Citi estimates AI capex could reach $490 billion by 2026, even as cheaper Chinese alternatives and U.S. tariff risks loom.
Prada Gets EU Blessing for Versace: The European Commission has approved Prada's acquisition of Versace, valued at $1.38 billion. This approval follows Prada's earlier agreement to purchase the fashion house from Capri Holdings. The Commission concluded that the deal does not raise any competition concerns within the European market, allowing the acquisition to proceed.
Trump Targets Foreign Films & Furniture With 100% Tariffs: U.S. President Donald Trump announced plans to impose a 100% tariff on films produced outside the United States, claiming the American film industry has been "stolen by other countries." He also threatened substantial tariffs on countries that don’t manufacture furniture in the US, citing the loss of the furniture industry in North Carolina to countries like China. Additionally, a 50% tariff on imported kitchen cabinets and bathroom vanities is set to take effect on October 1.
New Gig at Spotify in 2026: Spotify founder Daniel Ek announced that he will step down as CEO on January 1, 2026, transitioning to the role of Executive Chairman. Gustav Söderström and Alex Norström, currently Co-Presidents, will assume the positions of Co-CEOs, reporting directly to Ek and joining the board of directors, pending shareholder approval. Ek emphasized that this leadership change reflects the company's evolving structure and operational dynamics. The announcement follows recent controversies surrounding Ek's investment in defense tech firm Helsing, which led to artist protests and a decline in Spotify's stock value. As of the latest market data, Spotify's stock price stands at $684.33, experiencing a slight decrease.
Aur Batao 📰
Banter App Goes Big but Splits Opinion: Zoho’s Arattai messaging app (Tamil for “banter”) surged from 3,000 to over 350,000 daily downloads in three days, topping app-store charts and overtaking WhatsApp in some categories. The app offers end-to-end encryption, group calling, and supports over 20 languages, including Hindi, Tamil, Bengali, and Arabic. However, its Tamil name has sparked a fresh debate on language representation in digital platforms. While some view it as a nod to regional identity, others argue it may alienate non-Tamil speakers. Zoho founder Sridhar Vembu has emphasized that Arattai is designed to be inclusive and is part of the company's broader vision to provide secure, privacy-focused alternatives to global messaging platforms.
Mumbai Airport’s Race To Dubai And Singapore Hits Traffic Snags: Mumbai's new airport, Navi Mumbai International Airport (NMIA), is struggling with heavy traffic congestion as it seeks to compete with global aviation hubs like Singapore and Dubai. Despite state-of-the-art facilities, the airport's current infrastructure is struggling to handle the increasing passenger volume, leading to delays and operational challenges. Authorities are under pressure to enhance capacity and streamline operations to meet international standards and accommodate the growing demand for air travel in the region.
Sheetal Devi Hits The Bullseye, Tops World Champion From Turkey: Eighteen-year-old Indian archer Sheetal Devi has made history by winning the gold medal in the women's compound individual category at the Para World Archery Championship, defeating the World No. 1 from Turkey with a score of 146-143. Despite being born without arms due to a congenital condition called Phocomelia, Sheetal Devi’s victory marks a historic achievement and highlights growing recognition and support for para-athletes.
