Oct 18: Maruti’s Mini Car Moment, The New IT (IP) Battleground

Anyone else wondering which stars had to align for Bobby Doel to have his 2.0 villain era in Bollywood? The man has been on fire since he put that half filled glass on his head, and danced awkwardly to Jamal Kudu. He’s now teaming up with Ranveer Singh, Sreeleela, and director Atlee for a reportedly ₹150 crore budget ad-film. For what you ask? Ching’s Desi Chinese Noodles. Is Bobby the new Anil? Is Ching’s the new Maggi? We need answers.

But for now, let’s get into the Dispatch! 🚀

Today’s reading time is 6 mins.

The Indian stock market indices rallied for a third straight session on Friday, hitting their 52-week highs despite mixed global cues. The surge was fuelled by renewed FII inflows and optimism over domestic earnings, specifically from the banking and FMCG sectors.

GST Boost Sparks Revival: Maruti Suzuki India is seeing its entry-level hatchbacks - Alto and S-Presso - make a strong comeback. Since the government cut GST on smaller cars, these models now account for 22.2% of Maruti’s passenger vehicle sales, up from 16.7% previously. In just four weeks, the company recorded 400,000 bookings, including 80,000 for small cars - a 70% jump in demand compared to pre-tax revision levels.

Small Cars VS SUV Dominance: For years, SUVs have dominated Indian roads, symbolizing not just utility but social status. Small cars struggled to remain relevant, outnumbered more than two to one. Yet, recent data shows that affordability and practicality are winning over first-time buyers, especially two-wheeler owners looking to upgrade.

A Historical Perspective: Maruti’s small cars have long defined personal mobility in India. From the iconic Maruti 800 to the Alto, these hatchbacks made car ownership achievable for the emerging middle class, offering reliability, fuel efficiency, and urban practicality. They were a symbol of aspirations on wheels, shaping India’s automotive sector.

Policy Meets Opportunity: The GST 2.0 cut, which reduced taxes on passenger vehicles under four metres to 18%, played a pivotal role in reigniting demand. Coupled with aggressive financing offers, like a ₹1,999 EMI during Navratri, Maruti has made entry-level cars more accessible than ever. The result: a record 250,000 units retailed during the festive period.

The New IT Battleground: For decades, India’s IT giants thrived on a simple formula - low-cost outsourcing, steady contracts, and smooth client relationships. But as they evolve into platform-led, AI-powered enterprises, a new kind of risk is emerging: one that’s not about code quality or client delivery, but intellectual property (IP) and legal exposure. A recent $500-million lawsuit filed in the United States by Natsoft and Updraft Software against Hexaware Technologies has brought this risk into sharp focus. The case alleges IP violations, illustrating how Indian firms, in their shift from services to proprietary platforms, are increasingly vulnerable to disputes over ownership and licensing. Legal experts note that while top-tier companies like Infosys and TCS have strengthened their IP governance, many mid-sized firms still lag behind - making them soft targets in jurisdictions with stringent IP enforcement, such as the US.

Courtrooms And Code: This isn’t the first time Indian IT has been caught in the IP crossfire. TCS’s high-profile battle with Epic Systems ended with hefty damages, while firms like Infosys and Cognizant have faced similar challenges. The US remains a particularly risky market because it’s home to most enterprise clients and because its punitive damages regime makes litigation stakes enormous. Defending against such cases can get messy, involving intricate source code analysis, expert testimonies, and debates over whether similarities stem from infringement or independent development. The result: costly delays, damaged reputations, and cautious innovation.

AI And Tariff Pressures: While Indian firms wrestle with courtroom battles, boardrooms are facing another challenge - adapting to artificial intelligence and tariff-related uncertainty. The latest quarterly earnings from Tata Consultancy Services, Infosys, HCLTech, and Wipro suggest steady deal momentum, but also reveal client hesitancy. Many clients, especially in manufacturing and retail, are delaying decisions as they assess how new US tariff measures and AI integrations will impact long-term costs. Discretionary spending is shifting toward long-term digital transformation and automation, pushing companies to rapidly embed AI capabilities in their service lines. This shift is helping firms win new deals, but it’s also increasing dependency on proprietary tools - amplifying the very IP risks now surfacing in courts.

India’s F&B Sector Poised For IPO Surge: India’s food and beverage industry is gearing up for a significant IPO wave, potentially raising around ₹9,000 crore. Rising consumer demand and evolving market dynamics are driving companies to tap capital markets.

India May Ease Some Chinese Import Curbs: India is reportedly considering relaxing certain import restrictions on Chinese goods amid increasing dependence on key products. The move reflects a balancing act between strategic self-reliance and practical supply chain needs.

Waaree Expands In US Despite Trade Probe: Top Indian solar products manufacturer Waaree is planning expansion in the US despite an ongoing trade investigation. The company aims to capitalize on growing renewable energy demand abroad while managing regulatory scrutiny. Industry experts note that strategic international moves could bolster Waaree’s global footprint and long-term growth.

Coca-Cola Weighs $1 Billion IPO In India: Coca-Cola is reportedly considering a $1 billion IPO for its Indian bottling operations. The move would help the company unlock capital while expanding local operations.

Indian Pharma Firms Eye Production In Russia: Several Indian pharmaceutical companies are exploring localizing production in Russia to strengthen market access and navigate regulatory constraints. The strategy could reduce reliance on imports and enhance supply chain resilience.

India, Brazil Target $20 Billion Trade: India and Brazil have agreed to strengthen economic ties, setting a trade target of $20 billion by 2030. Both nations aim to enhance cooperation in key sectors, including agriculture, technology, and manufacturing.

India Voices Concerns Over WTO Fisheries Agreement: India has reiterated its reservations about the WTO Fisheries Agreement, citing past opposition to certain provisions. Officials emphasize the need to protect domestic fishing communities while aligning with global trade rules.

Toshiba To Invest ₹3,200 Crore In T&D Production: Toshiba plans to invest ₹3,200 crore to expand its transmission and distribution equipment manufacturing in India. The move aims to cater to rising domestic demand and strengthen local production capabilities. Experts see this as part of a broader push to enhance India’s energy infrastructure and indigenization efforts.

Embraer Expands In India With Mahindra Partnership: Aerospace company Embraer has opened a new office in India and partnered with the Mahindra Group for the C-390 Millennium aircraft. The collaboration targets defense and aerospace sectors, focusing on local support and technology transfer.

Chamber Of Commerce Files Lawsuit: The U.S. Chamber of Commerce, representing 300,000 businesses, has filed a lawsuit challenging President Trump’s $100,000 fee on new H-1B visas for highly skilled foreign workers. The group argues that the fee, introduced in September, exceeds presidential authority and would disrupt the visa system created by Congress. This is the Chamber’s first legal action against the Trump administration in its second term.

Rising Costs, Shrinking Workforce: The H-1B program, which provides 65,000 visas annually plus 20,000 for advanced degree holders, is crucial for technology companies and other specialty fields. Businesses warn the new fee could force them to either raise labor costs sharply or hire fewer skilled workers, potentially scaling back projects and affecting investors, clients, and existing employees. Other lawsuits challenging the fee are already underway in California federal court.

Debate Over Worker Replacement: Critics of H-1Bs say they replace American workers with cheaper foreign labor, while companies maintain the program addresses domestic talent shortages. Currently, H-1B sponsorship costs range between $2,000 and $5,000; the $100,000 levy would significantly raise expenses for employers without impacting visa recipients directly. Trump justified the fee under federal immigration law, citing national security and economic risks from large-scale replacement of American workers. The Chamber contends that this rationale is flawed because the payment is made by employers, not visa holders. The outcome of the lawsuit could reshape how U.S. businesses access global talent, particularly in technology and other high-skill sectors.

Capgemini Completes WNS Acquisition: Capgemini has finalized its acquisition of WNS, strengthening its footprint in business process management and outsourcing services. The move expands Capgemini’s client base and enhances its capabilities in digital and cloud solutions.

Google And World Bank Collaborate On AI Infrastructure: Google and the World Bank are partnering to develop AI-powered digital infrastructure for global development projects. The initiative aims to leverage artificial intelligence to improve data-driven decision-making and efficiency.

IMF Flags Risks From US-China Tensions: The IMF has warned that ongoing tensions between the U.S. and China pose “significant” risks to global economic growth. Trade disputes, tariffs, and geopolitical uncertainty could disrupt supply chains and investment flows.

Global Bank Stocks Tumble On Bad Loan Fears: Global banking shares have fallen sharply amid investor concerns over rising bad loans and potential credit risks. Analysts warn that loan defaults could strain financial institutions and slow economic growth. Market watchers are monitoring exposure levels and risk management strategies across key banks.

China Accuses U.S. Over Rare Earth Panic: China has accused the U.S. of deliberately stirring panic regarding rare earth export controls while stating it remains open to talks. Beijing emphasized that its measures are intended to safeguard national interests, not disrupt global markets.

EU Pushes To Unlock Frozen Russian Assets: EU leaders are urging faster action to release frozen Russian assets to support Ukraine, according to a recent document. The move is aimed at financing Ukraine’s reconstruction and defense needs amid the ongoing conflict.

India Remains Investors’ Favourite Amid Global Shocks: S&P Global Ratings President Yann Le Pallec said India continues to attract investor confidence despite global economic shocks. Strong fundamentals, policy stability, and a resilient market environment make India a preferred destination for foreign capital.

H1 Hiring Plummets At Top Indian IT Firms: India’s top five IT companies saw a 79% drop in H1 hiring, with TCS reporting a loss of over 19,700 employees. The decline reflects ongoing talent retention challenges amid market shifts and project realignments.

Record Defence Exports And New HAL Production Lines: Defence Minister Rajnath Singh announced a record ₹25,000 crore in defence exports while inaugurating new HAL production lines in Nashik. The expansion underlines India’s push for self-reliance and export growth in defence manufacturing.

ICC Women’s World Cup 2025 Breaks Viewership Records: The ICC Women’s World Cup 2025 has attracted over 60 million viewers by mid-October, smashing previous records. The surge reflects growing popularity and investment in women’s cricket globally.

UFOs Near US Nuclear Sites? U.S. Senator Marco Rubio revealed that unidentified flying objects have reportedly been seen near nuclear facilities, raising fresh concerns about national security. The sightings, described as “unexplained” by officials, are part of ongoing investigations into aerial phenomena.

Google DeepMind Solves Major Cancer Mystery: Google DeepMind’s new AI model has made a significant breakthrough in understanding a complex aspect of cancer biology, potentially accelerating drug discovery and treatment development. The AI analyzed massive datasets to uncover patterns previously missed by human researchers. The development could pave the way for personalized therapies and improved patient outcomes.

THAT’S ALL FOR TODAY!

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