Handpicked updates about India’s business and the business of India
Contrary to social media rumourfire that MTV is shutting down, it’s very much alive and well in India. It is planning to pull the plug on 5 music channels in the UK (which is the end of an era in itself), but those changes wont affect India. It’s going to take a lot more than cost efficiency to take Roadies from us.
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 6 mins.
Markets 🔔🐂🐻
As of the Indian market closed on Oct 15th
The Indian stock market rebounded sharply on Wednesday, driven by positive global cues and growing expectations of a US Fed rate cut. The Sensex and Nifty 50 both closed higher, ending a two-day losing streak with healthy across-segment buying.
Technology & Semiconductor Industry
India’s $18 Billion Bet To Become A Chip Powerhouse
Image credits: BBC
A Global Race India Doesn’t Want To Lose: India is betting $18 billion to become a global semiconductor hub, aiming to develop design, fabrication, testing, and packaging capabilities domestically. The push gained urgency after the U.S. restricted AI chip exports to China in 2022, sparking a global race for semiconductor self-reliance. Currently, India consumes electronics at a massive scale but has minimal participation in the global supply chain. New Delhi’s Semiconductor Mission seeks to change that, with 10 approved projects worth 1.6 trillion rupees ($18.2 billion), including two fabs and multiple testing and packaging facilities.
LG And Samsung Signal Confidence: Global tech giants are betting on India’s talent. LG Electronics CEO William Cho called India a “best capability country,” illustrating a shift from cost arbitrage to engineering strength. LG plans to use Indian engineers for advanced semiconductors and AI-enabled features, while leveraging India as a strategic export hub. Samsung is taking immediate action, scaling up its Samsung Semiconductor India Research (SSIR) centre in Bengaluru. Engineers across SoC, memory, and foundry divisions are being hired to work on AI and high-performance computing chips. With local leadership in place, Samsung aims to position India as a global design powerhouse.
India’s Strength In Chip Design: Chip design is talent-intensive, and India already hosts major design centres. AMD recently inaugurated its largest global design facility in Bengaluru, employing 3,000 engineers. Government initiatives, including the Design Linked Incentive (DLI) and Chips to Startups (C2S), equip colleges with electronic design automation (EDA) tools, ensuring graduates are industry-ready. These moves show India’s growing role as a semiconductor design hub, complementing efforts to build local manufacturing capabilities.
Challenges Remain: Experts caution that India still faces structural hurdles. Stephen Ezell, innovation policy expert, notes fab investments depend on “500 discrete factors” including infrastructure, labor policies, taxes, and trade. Fabs require flood-free sites, reliable connectivity, and ultra-pure chemicals. Local IP creation is limited; most advanced chip designs remain overseas. Without robust IP laws and enforcement, India risks being confined to non-core design and testing roles.
Big Projects And The Road Ahead: India’s largest current fab is the Tata-Powerchip plant in Gujarat, producing ICs, microcontrollers, and high-performance logic for AI, automotive, and storage. Odisha’s Clas-SiC Wafer Fab will make compound semiconductors for EVs, defense, and solar inverters. The government now covers 50% of project costs for all fabs and testing units, creating a stronger incentive framework. Medium-sized companies are also entering chip testing and packaging (OSAT), promising a more complete ecosystem.
India’s Moment: India’s emergence as a semiconductor hub combines global confidence in talent, government support, and growing infrastructure. While the path to cutting-edge 2nm chips is long, the foundation is being laid.
Business India: Dhanda Hai Yeh!
Image credits: Reuters
Apple Lobbies India To Change Tax Law: Apple is urging Indian authorities to reconsider a tax law that it says is hampering the company’s expansion plans in the country. The tech giant seeks a regulatory environment more conducive to foreign investment and local operations. India is a critical market for Apple, both for sales and potential manufacturing partnerships.
India’s Trade Deficit Hits 11-Month High: India’s trade deficit widened to $32.15 billion in September, marking the highest level in nearly a year. Rising imports, especially of crude oil and electronics, outpaced export growth. Analysts say persistent trade imbalances could pressure the rupee and affect macroeconomic stability. The government is monitoring the situation while seeking to boost exports and reduce import dependency.
China Files WTO Complaint Against India: China has lodged a complaint with the World Trade Organization over India’s subsidies for electric vehicles and batteries. Beijing claims these incentives distort trade and urges New Delhi to correct the “wrongdoings.” India’s policies aim to strengthen its domestic EV and battery manufacturing sector. The case reflects rising global tensions over industrial subsidies and fair trade practices.
Hyundai Plans ₹45,000 crore Investment: Hyundai Motor India announced plans to invest ₹45,000 crore by 2030, targeting 26 new model launches. The investment aims to expand manufacturing capacity and accelerate the company’s EV portfolio in India. Hyundai sees the country as a strategic hub for growth and innovation. The plan underscores global automakers’ confidence in India’s automotive market potential.
Axis Bank Q2 Results: Profit Dips: Axis Bank reported a 26% decline in net profit for Q2, falling to Rs 5,090 crore and missing market expectations. The slowdown is attributed to higher provisioning and softer interest income growth. Analysts note that while asset quality remains stable, challenges persist in maintaining margins. The results reflect broader pressures on the banking sector amid rising costs and competition.
World 🌏
Global Supply Chains Held Hostage By China’s Rare Earth Play
Image credits: Bloomberg
China’s Controls Are Shaking The World: China’s latest restrictions on rare earth exports have sent shockwaves through global markets, showing Beijing’s outsized influence over critical supply chains. The new rules require overseas firms to secure Chinese government approval before exporting products containing even trace amounts of certain rare earths, essential for electric vehicles, consumer electronics, and defense systems. The move triggered immediate reactions: the U.S. threatened punitive measures, the European Union criticized China for leveraging trade dependencies, and nations including India and Taiwan began seeking alternatives. In India, automakers accelerated testing of ferrite-based magnets as a geopolitically safer substitute, while U.S. officials warned of risks to industrial supply chains. China dominates 70% of global mined rare earths and over 90% of permanent magnets, giving it unprecedented sway over high-tech industries. While Beijing justifies the policy on national security grounds, it mirrors U.S.-style export controls. The scramble for alternatives has begun, exposing vulnerabilities while creating new opportunities beyond Chinese dominance.
Auto Industry Sounds Alarm: Global automakers warn that tightened Chinese export rules could trigger major supply chain disruptions. Germany’s VDA and Italy’s ANFIA flagged risks to EV batteries, semiconductors, and high-tech applications as existing reserves dwindle. With China controlling 60–90% of production and refining capacity, industry groups are urging urgent engagement from European policymakers. Inventories provide only a temporary buffer against potential shortages.
U.S. Looks To India And Allies: U.S. Treasury Secretary Scott Bessent signaled that Washington expects support from India, Europe, and other democracies amid escalating tensions. He described China as a “command-and-control economy” threatening global supply chains. President Trump has threatened additional tariffs on Chinese goods starting November 1, potentially raising import duties to nearly 130%.
China Plays Hardball: Beijing believes Trump’s focus on the stock market means that his tariff threats are non-credible. Rare-earth export restrictions and sanctions on U.S. units of South Korea’s Hanwha Ocean, that have rattled markets, signal Xi’s strategy to pressure Trump ahead of a summit in South Korea.
DuniyaDIARY 🌏📒
Image credits: Reuters
Amazon To Cut Up To 15% Of HR Jobs: Amazon plans to reduce its human resources (HR) staff by up to 15%, affecting its People eXperience and Technology (PXT) team, which employs over 10,000 individuals globally. This move is part of a broader restructuring effort aimed at enhancing operational efficiency and cost-effectiveness. Further layoffs are anticipated across other departments within the company
OpenAI To Permit Erotic Content On ChatGPT For Verified Adults: OpenAI has announced that it will relax restrictions on ChatGPT, allowing verified adult users to access erotic content. CEO Sam Altman stated that previous safety measures had limited the chatbot's appeal for many users without mental health concerns. The company now believes it can safely ease these restrictions, aiming to "treat adult users like adults."
Trump Criticizes BRICS, Threatens Tariffs On Member Nations: US President Donald Trump has labeled the BRICS alliance as an "attack on the dollar" and warned of imposing 10% tariffs on member nations. He expressed strong opposition to any efforts by BRICS countries to create an alternative currency to the U.S. dollar, stating that such actions would lead to significant economic consequences.
Instagram's New Teen Content Policy: Instagram has announced a policy update aimed at limiting content accessible to teen users, introducing a "PG-13" filter to restrict mature material. The platform plans to roll out this feature gradually, with full implementation expected in the coming months.
Morgan Stanley Reports Strong Earnings: Morgan Stanley has reported impressive third-quarter earnings for 2025, exceeding analyst expectations. The firm's revenue reached $18.2 billion, surpassing forecasts by over $1.5 billion, and earnings per share stood at $2.80, nearly 34% above the anticipated $2.09.
U.S. Economic Data Freeze: The U.S. government shutdown has paused the release of key economic data, sparking global uncertainty. Policymakers in countries like Japan and the UK worry that the lack of reliable U.S. indicators could lead to flawed decisions amid trade and geopolitical pressures. At IMF and World Bank meetings, officials flagged the data gap as a risk to global economic stability.
Cook Commits To China Growth: Apple CEO Tim Cook has pledged to increase investment in China during his visit to the country. This commitment comes amid escalating tensions between the U.S. and China over trade and technology issues. Cook's visit reflects Apple's strategy to strengthen its presence in the world's second-largest economy, despite the broader geopolitical challenges.
Aur Batao 📰
Modi And Lula Team Up Against Trade Pressures: In response to U.S. tariffs, Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva are collaborating to diversify trade partnerships. Their goal is to reduce dependence on the U.S. market by strengthening bilateral ties and exploring new economic opportunities.
Travel Rankings Shake-Up: The latest Henley Passport Index reveals a decline in India's global passport ranking, dropping to 85th place with visa-free access to 57 countries. Conversely, China's passport has ascended to 64th, reflecting improved diplomatic relations and strategic international agreements.
ICC Sanctions Indian Women’s Team: The ICC has imposed sanctions on the Indian women’s cricket team following a rules violation, with the captain pleading guilty. The punishment adds to the team’s ongoing challenges as they prepare for upcoming international tournaments.
Ronaldo Sets New Scoring Milestone: Cristiano Ronaldo has achieved a new milestone, scoring twice in a match for Portugal and breaking an international scoring record. This landmark achievement further solidifies his status as one of football’s all-time greats.
