Handpicked updates about India’s business and the business of India
An old adage says “cricket is a game of glorious uncertainties” and the officials in India W vs. Pakistan W World Cup clash were determined to prove this right starting at Step 1 - the literal toss. In an epic and confusing blunder, the presenter misheard Pak skipper Fatima Sana’s call of “Tails” as “Heads”, and the ICC match referee, apparently too bored to notice, declared Pak the winner when the coin landed on Heads. You guys had one job. Anyway, didn’t stop India from winning though. That’s 12-0 and counting.
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 6 mins.
Economy & Employment
IT Giants Slash Jobs, Is More Pain Coming For Indian Workforce?
Image credits: Mint
Subdued Growth Clouds FY26: India’s IT sector is facing muted growth in FY26, with major firms like TCS, Infosys, and HCLTech reporting healthy deal pipelines but revenue growth guidance restrained at 1–5%. HSBC Global Research highlights that near-term discretionary spending by clients remains soft. However, momentum could return in FY27, driven by recovery in key export markets, particularly the US, and increased enterprise adoption of AI.
AI And Digital Transformation: Enterprise-scale AI adoption is seen as the next major growth driver. AI projects are shifting from productivity improvements to business growth initiatives. Accenture, with a large workforce in India, nearly doubled its Gen AI bookings to USD 5.9 billion in FY25. Analysts estimate that AI-led digital transformation could boost revenue growth for Indian IT services companies by 200–300 basis points in FY27.
The Latest Hit - Accenture And Global Layoffs: The sector is also dealing with significant workforce reductions. In the latest hit, Accenture has reportedly cut around 11,000 roles globally, despite posting strong revenue numbers. CEO Julie Sweet noted that hiring would continue in FY26 for specialized roles, but employees whose skills could not be redeployed were let go. Globally, other IT majors have also reduced staff: Intel plans to cut 25,000 jobs in 2025, Microsoft 9,000, while Amazon, Google, and Meta have all undertaken large-scale layoffs in the past year. In India, TCS announced 12,000 cuts, mainly among middle- and senior-grade employees, while Infosys and HCL Technologies reported limited redeployments and slower hiring.
Hiring Focus Shifts To Specialized Skills: Hiring in India is now concentrated on AI, cloud, analytics, and other emerging technologies. Fresher recruitment has dropped sharply, and large firms have reported delays in onboarding. Strategic acquisitions by Indian IT companies remain measured (between USD 1.8–2.2 billion from FY22–FY25) compared to global peers’ far larger M&A activity, signaling a cautious growth approach.
What It Means for Indian IT Professionals: For IT professionals in India, the message is clear: job security is no longer guaranteed, and traditional career paths are shifting fast. Employees must focus on specialized skills in AI, cloud, analytics, and digital transformation to stay relevant.
Business & Startups
The Reality For D2C Startups Under FMCG Wings
Image credits: ET
Scaling Up With FMCG Backing: In the past five years, India’s leading FMCG firms - HUL, ITC, Marico, and Emami - have acquired or taken controlling stakes in over a dozen digital-first brands. Analysts note that these partnerships have enabled startups to scale faster by leveraging nationwide distribution networks, marketing resources, and retail touchpoints that would have been difficult to build independently. Using parent company infrastructure, many brands gained access to hundreds of warehouses and expanded retail reach, accelerating pan-India operations.
Profitability Remains A Challenge: Revenue gains have not always translated to profits. High customer acquisition costs and integration challenges continue to weigh on margins. Crisil Ratings reports that while D2C brands grew at 40% CAGR between FY21–24, fewer than 15% crossed ₹250 crore revenue pre-acquisition, and only a third were profitable.
FMCG Perspective: For FMCG majors, acquiring D2C startups is less about immediate profits and more about long-term strategic gains. Startups provide innovation and direct-to-consumer channels, allowing FMCG firms to access new markets faster and test categories with lower risk.
Business India: Dhanda Hai Yeh!
Image Credits: Indian Express
Top Indian Consulting Firms Hit $1B Revenue: India’s leading strategy consultancies - McKinsey, BCG, Bain, and AT Kearney - have collectively surpassed $1 billion in revenues in FY24, marking a new milestone for the sector. The quartet grew at an average of 15-16%, outperforming global peers, driven by rising demand for digital transformation, business strategy, and advisory services. With this growth trajectory, combined revenues are expected to exceed $3 billion within the next decade.
New Company Registrations Surge: India saw a surge in new company registrations, with over 21,600 entities registered in September, marking the highest monthly figure in five months. The growth reflects increased investor confidence and a favorable business environment, suggesting a positive outlook for the country's economic expansion.
BSNL To Upgrade 4G Towers To 5G: BSNL plans to upgrade all 92,500 of its 4G towers to 5G within the next six to eight months. The move aligns with BSNL's broader strategy to enhance its network capabilities and compete effectively in the evolving telecom sector.
