Oct 15: Infrastructure Issues Abound, Kids Drive Commerce

What does FIFA have in common with a war summit? Apparently, a front‑row seat. FIFA President Gianni Infantino strolled into the Gaza Peace Summit in Egypt and the world raised a collective eyebrow. In a meeting co-chaired by Donald Trump and Abdel Fattah el‑Sisi (President of Egypt), Infantino pitched youth programs and FIFA’s plan to rebuild Gaza’s football infrastructure. Diplomacy through sport, or just wildly offside? Unclear until we get VAR on this. Either way, if it leads to lasting peace, we’re all for calling in the subs ⚽

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 6 mins.

The Indian stock market closed in the red for a second straight session on Tuesday, tracking weak global cues. The losses were fuelled by persistent investor concerns over a renewed escalation of US-China trade tensions.

The Stark Reality: From collapsing bridges to massive craters in roads and highways especially during the monsoons, India’s infrastructure is sending a warning few are willing to heed. In the past four years alone, 170 bridges have collapsed, claiming over 200 lives. Every year, thousands of crores are spent on de-silting drains and river projects, yet cities like Mumbai flood after just a few hours of rain. The BMC, for instance, spent ₹7,000 crore over a decade, yet the city remains perennially underwater. Despite this, India has been aggressively increasing its public infrastructure budget. The 2025-26 allocation stands at ₹1.12 trillion—over 3% of GDP—and cumulative infrastructure spending is projected to reach ₹143 trillion between 2023-24 and 2029-30, more than double the preceding seven years. Yet, the promise of world-class infrastructure remains a mirage.

Execution Woes and Government Apathy: Much of India’s infrastructure is riddled with issues. Airports leak during heavy rain, expressways develop craters large enough to swallow trucks, and bridges fall decades before their intended lifespan. Between 1971 and 2017, over 2,130 bridges collapsed, according to the Central Road Research Institute. The government routinely convenes meetings, issues condolences, and promises stricter checks and punishments. But the problem isn’t the standards—the National Building Code 2016 and Indian Road Congress norms are largely on par with global benchmarks. The failure lies in operational execution. Flawed procurement systems, rampant L1-based corruption, low-quality design, minimal technical audits, and the lack of preventive maintenance ensure that disasters recur and examples abound: misaligned bridges, “bridges to nowhere,” and crumbling expressways.

A Crisis Of Accountability: Infrastructure quality failures are fundamentally a crisis of accountability. Punishing contractors or junior officials is tokenism. The real decisions - budgets, oversight, approvals - reside higher up, where political inertia reigns. The Chinese visitor’s question resonates as a larger mirror. China’s cities are planned, disciplined, and consistently maintained, supporting economic growth. India’s reactive patchwork, by contrast, is unprepared for rapid urbanization, investment demands, and climate shocks. If India aims to rival China economically, it cannot continue tolerating crumbling roads, flooded streets, or mismanaged cities.

The Rising Segment: The FMCG sector has traditionally focused on adults, but kids—from babies to teens—are finally getting attention. Globally, kids’ beauty products form a $1,387M market, projected to reach $2,365M by 2033. In India, kids account for 15–20% of the $5B beauty and personal care market, with potential to exceed $28B by 2030. Though a majority of children are not direct spenders, they strongly influence buying decisions. Products that balance fun and function—cartoon-themed packaging, organic snacks, or pediatrician-approved shampoos—are winning parents’ approval. Modern parents prioritize ingredient transparency, age-specific formulations, and safety, often subscribing to essentials like diapers and wipes.

What’s Fueling Growth: Key drivers include over 20% of India’s population under the age of 14, rising disposable incomes, urbanization, social media influence, and niche D2C brands innovating in personal care, nutrition, and hygiene. Retail formats are evolving with curated marketplaces offering kid-focused experiences. Fast-growing segments include gentle personal care, kid-friendly oral care, fortified snacks, eco-friendly diapers, and vitamin-infused beverages.

Adani-Google Data Centre: Adani Enterprises is teaming up with Google to build India’s largest data centre campus in Visakhapatnam. The project signals a major boost to India’s digital infrastructure and cloud computing capabilities. It is expected to create jobs and attract further tech investment in the region.

KEC International Bags Saudi Transmission Order: KEC International has secured a Rs 1,064-crore contract to set up a transmission line in Saudi Arabia. The win strengthens the company’s international footprint in power infrastructure. The project spotlights growing cross-border opportunities for Indian engineering and construction firms.

Ford India At Risk? Ford’s comeback in India is under threat as its Chennai plant faces potential closure. The shutdown could derail production plans and delay any revival in the Indian market illustrating challenges foreign automakers face in sustaining operations amid rising costs and competitive pressures.

India’s Textile Export Shift: Indian textile exporters are pivoting to Europe while offering discounts to counter U.S. tariffs. The strategy aims to protect revenues and maintain market share amid shifting global trade dynamics. Europe is emerging as a key destination for Indian textiles, providing a buffer against tariff shocks.

Italian Fahion Brand OVS Expands India Sourcing: OVS plans to open five stores in the next two years while boosting sourcing from India. The strategy underlines India’s growing importance in global apparel manufacturing signalling stronger collaboration opportunities for local suppliers and designers.

Gems & Jewellery Exports Rise In September: India’s gems and jewellery exports (majorly affected by US tariffs) rose 6.5% to $2.9 billion in September. The growth demonstrates the sector’s resilience despite global economic challenges. Strong international demand continues to support the industry’s expansion and contributes to foreign exchange earnings.

Tata Electronics Justech Buyout: Tata Electronics has acquired the India unit of Chinese iPhone supplier Justech. The acquisition strengthens Tata’s electronics manufacturing capabilities and domestic supply chain presence. It also reflects a broader trend of Indian companies consolidating local tech assets to reduce foreign dependency.

Infosys UK NHS Contract: Infosys won a ₹14,000 crore contract to implement a workforce management system for the UK’s NHS. This landmark deal is among the largest IT outsourcing contracts in Europe, reinforcing India’s position as a leader in global software services and healthcare tech solutions.