Handpicked updates about India’s business and the business of India
Much to the glee of Swifties all around the world, Taylor Swift has done it again. Her new album, The Life of a Showgirl, just shattered Adele’s record for biggest first-week sales, moving a jaw-dropping 3.5 million copies in seven days. Taylor doesn’t just top charts; she defines them. Forget The Tortured Poets Department—she’s running her own economic department. The Fed might as well start tracking the “Swift Index”📈 while we sincerely hope to see Adele come back with a hello from the other side 🎤🪩
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 6 mins.
Markets 🔔🐂🐻
As of the Indian market closed on Oct 9th
The Indian equity market settled in the green on Thursday, driven by a positive rally in IT, metal, and pharma stocks. Gains were fuelled by optimism over easing Middle East geopolitical tensions and expected renewed foreign investor inflows.
Geopolitics & International Trade
Rare Earths Race: China Enforces “No Re-Export” Policy Over India
Image credits: Global Times
Global Rare Earths Tension: The global race for rare earths—the 17 minerals powering everything from electric vehicles to AI chips and fighter jets—is intensifying. And once again, China holds most of the cards. In April 2025, Beijing jolted the global supply chain by curbing exports of seven rare earth materials and magnets, a move that hit Indian automakers and EV makers hard. Four months later, China lifted those curbs.
India In The Crosshairs: When Chinese Foreign Minister Wang Yi met External Affairs Minister S. Jaishankar in New Delhi, he promised to meet India’s needs for fertilizers, tunnel-boring machines, and rare earths. The timing was no coincidence: just as Wang made his offer, U.S. President Donald Trump announced that “a deal with China is done” to secure full rare earth and magnet supplies—pending final approval with President Xi Jinping, which has not happened.
The “Promise”: China has intensified its rare earth export controls, particularly targeting heavy rare earth magnets critical for defense and semiconductor applications. As part of these measures, Beijing is seeking assurances from India that any magnets supplied will not be re-exported to the United States and will be used solely for domestic purposes.
India’s Strategic Move: To reduce dependence on imports, India is preparing a ₹7,350 crore plan to boost domestic production of rare earth permanent magnets (REPMs). The seven-year initiative aims to establish a full domestic value chain, targeting annual production of up to 6,000 tonnes. The government will support five integrated REPM plants through capital subsidies and sales-linked incentives. Currently, India relies almost entirely on imports to meet its magnet demand, which is expected to double by 2030.
Defence & International Relations
India-UK: £350M Missile Deal And Future Defence Moves
Image credits: Forces News
Major Defence Agreement Signed: India and the United Kingdom have signed a £350 million ($468 million) deal under which the Indian Army will receive UK-made missiles. Announced on the second and final day of British Prime Minister Keir Starmer’s first official visit to India, the agreement aims to strengthen India’s air-defence capabilities while supporting the Atmanirbhar Bharat initiative. The deal is expected to directly create over 700 jobs in Northern Ireland—one of the UK’s four constituent nations—according to the UK Ministry of Defence.
Strategic Context: India is the world’s second-largest importer of arms, yet the UK has historically accounted for just over 3% of Indian acquisitions over the past decade. While India has increasingly shifted away from Russian suppliers, countries like France, the US, and Israel have benefited from this pivot. Indian authorities typically prefer government-to-government contracts, whereas the UK has pursued a more commercially-driven approach. The new missile deal represents a step toward long-term collaboration on complex weapons systems.
Thales Lightweight Multirole Missiles: The contract covers Thales Lightweight Multirole Missiles (LMMs), also known as Martlets, developed by Belfast-based Thales Air Defence, and named after a mythical bird from English heraldry that never roosts. Notably, the UK is also supplying LMMs to Ukraine under a separate agreement.
Future Industrial Collaboration: India and the UK have also agreed to develop electric propulsion systems for naval ships in a deal initially worth £250 million. The missile deal and industrial partnerships mark a strengthening of India-UK defence relations, supporting India’s modernization goals, boosting UK employment, and promoting long-term strategic cooperation.
Business India: Dhanda Hai Yeh!
Image credits: The Hindu
Trump Shelves Tariffs, Boosts Indian Pharma Stocks: The Trump administration has halted plans for tariffs on generic drug imports, providing relief to Indian pharmaceutical companies that supply nearly half of U.S. generic prescriptions. The move averts potential price hikes and shortages for millions of Americans relying on affordable imported medications. India is the largest single source of generic prescription drugs for the U.S. market, surpassing its own domestic producers.
India Pilots Payments Via ChatGPT: The National Payments Corporation of India (NPCI), fintech firm Razorpay, and OpenAI have launched a pilot program enabling e-commerce payments via ChatGPT. Built on top of UPI, users can make purchases directly in the chatbot.
Graphcore To Invest In India’s Chip Sector: SoftBank-owned British chipmaker Graphcore has announced plans to invest $1.3 billion in India over the next decade. The company will establish its first office in Bengaluru, initially hiring 100 AI engineers, with plans to expand to 500 roles within two years.
KisanKraft To Expand Into 50+ Countries: Bengaluru-based KisanKraft plans to expand into over 50 countries. Backed by 13 patents and 19 certifications, it offers locally designed, affordable agri-machinery and climate-resilient seeds. The company promotes adoption through rental models, dealer networks, training, and government subsidies.
India Aims for Global Collaboration on 6G Trials: India is preparing to launch 6G trials, positioning itself as a significant player in next-generation network technologies. At the India Mobile Congress (IMC) 2025, global experts emphasized the nation's growing importance and potential for international collaboration. Japan has expressed keen interest in partnering with India on new services and technologies, aiming to strengthen ties between industries and governments.
Rolls-Royce Expands India Operations: Rolls-Royce plans to make India a major hub for its operations across civil aviation, defence, and energy sectors. The company recently inaugurated its expanded Global Capability and Innovation Centre in Bengaluru, set to be its largest hub.
World 🌏
$600 Trillion In Wealth: Will AI Productivity Or Inflation Determine The Future?
Image credits: WSJ
The $600 Trillion Imbalance: Global wealth is estimated at an extraordinary $600 trillion, nearly quadrupling since 2000 and far outpacing worldwide GDP growth. Analysts attribute much of the increase to asset price inflation and “paper gains,” rather than underlying productivity improvements, raising concerns about the sustainability of such rapid accumulation.
Diverging Investor Strategies: Investors are weighing two scenarios: bet on a productivity surge driven by artificial intelligence and technological innovation, or prepare for a potentially prolonged inflation. AI offers the promise of higher efficiency and new economic value, but it also carries uncertainties regarding adoption, regulation, and real-world impact.
The Role Of Central Banks: Monetary policy decisions will impact the trajectory of this wealth. Central banks will need to strike a balance between supporting economic growth and limiting inflation. Decisions on interest rates, asset purchases, and financial regulation will significantly influence whether current wealth levels can be maintained.
Wealth Concentration Concerns: The top 1% continue to hold a disproportionate share of global assets, contributing to a deepening inequality. The distribution of wealth affects consumption and investment patterns and thus the broader economy. In summary, the $600 trillion estimate frames a policy and market debate focused on productivity versus inflation.
DuniyaDIARY 🌏📒
Image credits: ABC News
US Tightens Tech Export Controls On Chinese Firms: The Trump administration expanded export restrictions to include subsidiaries of Chinese tech companies on the entity list, aiming to close loopholes. The move targets firms like Huawei and DJI and affects tens of thousands of entities, drawing criticism from Beijing as US-China tech tensions escalate.
Google To Invest €5B In Belgium AI Hub: Google has announced a €5 billion investment in Belgium to expand its AI infrastructure and data centre network. The project will modernise facilities in Saint-Ghislain and Farciennes, creating approximately 300 direct jobs and supporting an additional 15,000 roles through local contractors.
Ørsted To Cut 2,000 Jobs: Danish wind energy giant Ørsted plans to eliminate 2,000 jobs over the next two years, citing escalating costs and global supply chain issues impacting the offshore wind industry. The company has previously canceled major U.S. projects, including Ocean Wind I and II, due to rising inflation and interest rates.
48 Hours To Name New PM: French President Emmanuel Macron faces a 48-hour deadline to select a new Prime Minister following the previous PM’s resignation. Political analysts suggest that Macron's choice will shape his administration's policy direction and legislative agenda.
Novo Nordisk To Acquire Akero Therapeutics: Novo Nordisk has announced plans to acquire Akero Therapeutics, a biopharmaceutical company specializing in liver disease treatments. The acquisition aims to bolster Novo Nordisk's pipeline in non-alcoholic steatohepatitis (NASH) and other liver-related conditions.
IMF, BoE Flag AI Bubble Risk: The International Monetary Fund (IMF) and the Bank of England have issued warnings about the possibility of an AI investment bubble. Both institutions caution that the rapid surge in AI-related investments may lead to overvaluation and market instability, urging investors to exercise caution and conduct thorough due diligence.
Israel And Hamas Reach First Gaza Peace Deal: Israel and Hamas have agreed to the first phase of a ceasefire plan that includes releasing all hostages held by Hamas and withdrawing Israeli troops to designated lines. The deal allows humanitarian aid into Gaza and provides for an exchange of prisoners within 72 hours of the agreement's implementation. The talks for the agreement were held in Egypt.
Russia’s Workforce Cuts Amid Slowdown: Major Russian industrial firms—including Cemros, Alrosa, Mechel, and GAZ—are implementing furloughs, reduced workweeks, and staff cuts as the nation's war economy faces mounting challenges. Factors such as declining domestic demand, weakened exports, and the influx of cheaper imports from countries like China are exacerbating the situation. The non-military sectors have contracted by 5.4% since January, and GDP growth is projected to slow to around 1.0%.
Aur Batao 📰
India’s First In-Orbit Refuelling Interface: Chennai-based OrbitAID won the Indo-Australian MAITRI grant to launch India’s first in-orbit docking and refuelling system (SIDRP) in 2026. The mission aims to extend satellite lifespans, promote space sustainability, and integrate ground-to-orbit propellant logistics.
Tejashwi Yadav Promises Government Jobs For Every Bihar Family: In a bid to sway voters ahead of the 2025 Bihar Assembly elections, Leader of Opposition Tejashwi Yadav pledged to provide a government job to at least one member of every family lacking employment. If the RJD-led Mahagathbandhan secures power, Yadav vows to enact a new law within 20 days and ensure job placement within 20 months.
'Kantara: Chapter 1' Tops Global Box: In its first week, Kantara: Chapter 1, directed by Rishab Shetty, grossed approximately ₹446 crore globally, surpassing major releases like Taylor Swift: The Showgirl and One Battle After Another. Domestically, it crossed ₹330 crore, making it the second-highest-grossing Kannada film of all time.
Ferrari Unveils an All-Electric Four-Seater: Ferrari has introduced the "Elettrica," its inaugural all-electric sports car set to launch in 2026. The four-door coupe boasts over 1,000bhp, a 0-100 km/h acceleration in 2.5 seconds, and a range exceeding 530 km (329 miles). Despite this leap into electrification, Ferrari maintains its commitment to a diversified lineup, aiming for 20% EVs, 40% hybrids, and 40% internal combustion engine models by 2030.
