Handpicked updates about India’s business and the business of India
Tanmay Bhat is officially India’s richest YouTuber with a net worth of ₹665 crore, beating CarryMinati, Samay Raina, and Bhuvan Bam to the spot. Hard to believe it’s been a decade since the AIB roast video. Probably deserves a repeat watch-party.
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 6 mins.
Markets 🔔🐂🐻
As of the Indian market closed on Oct 6th
The Indian stock market rallied for a third straight session on Monday, with the Sensex and Nifty 50 ending with healthy gains. The surge was led by key banking and IT heavyweights like HDFC Bank and TCS.
Business & Corporate Affairs
One Year After Ratan Tata: A Power Puzzle At the House of Tatas
Image credits: Mint
Leadership Rift At Tata Trusts: As the first death anniversary of Ratan Tata approaches on October 9, one of India’s most respected conglomerates is witnessing internal turbulence. Tata Trusts, which control about 66% of Tata Sons, the holding company of the $180-billion Tata Group, are mired in disagreements over governance, transparency, and control. Tensions surfaced after former Defence Secretary Vijay Singh stepped down as a Tata Sons director on September 11. His reappointment, required under a rule mandating annual renewal for directors above 75, was opposed by four trustees. This is not the first time Tata Sons has been rocked by boardroom conflict. The latest friction echoes the Ratan Tata–Cyrus Mistry feud, which dominated corporate India for six years.
Listing Dilemma And Government Watch: Adding to the current strain is the missed September 30, 2025 deadline for Tata Sons’ public listing, mandated under the RBI’s upper-layer NBFC framework. Amid growing unease, two senior cabinet ministers will meet this week to discuss ways to contain internal rifts and chart the listing’s future course.
Deeper Concerns And Why It Matters: Some insiders warn the infighting could delay critical board appointments and major group decisions. For the government and markets, the stakes are high. Tata Sons anchors India’s largest conglomerate employing millions and influencing investor sentiment. Prolonged instability at the top could ripple across the economy.
Economy & Business
MSMEs Battle ₹28,000-Crore Payment Delays Despite New ODR Push
Image credits: IBEF
The Squeeze: For India’s MSMEs, cash flow isn’t just profit, it’s survival. As of now, delayed payments worth nearly ₹28,000 crore remain stuck with debtors, including large corporates and government entities, choking the sector’s liquidity and growth.
A Chronic Problem That Won’t Go Away: MSMEs have long complained that payments for goods and services often arrive months after delivery - well beyond the 45-day limit mandated under the MSME Development Act, 2006. A Reserve Bank of India study found it takes an average of 90 days for MSMEs to collect dues. For small firms that rely on quick turnover to pay suppliers, workers, and lenders, such delays can be devastating. India has over 66 million registered MSMEs, contributing roughly one-third of the country’s gross value added (GVA) and 45% of exports, while employing about 260 million people. Prolonged payment delays ripple through supply chains, threatening jobs and local economies.
From Facilitation Councils To Digital Dispute Portals: To tackle delayed payments, the government set up MSE Facilitation Councils under the 2006 law. Yet, with over 2.5 lakh cases filed, backlogs quickly grew, prompting fresh measures. The MSME Samadhaan portal, launched in 2017, was the first step toward transparency, allowing firms to track their cases. But the backlog persisted. In response, the government recently launched an Online Dispute Resolution (ODR) portal, in June, to settle payment disputes digitally - faster, cheaper, and without involving courts.
More Delays, More Damage: Despite the new measures, payment discipline remains weak. In FY25 alone, MSMEs filed over 47,000 applications on the Samadhaan portal, claiming dues worth more than ₹8,000 crore, the highest since the portal’s launch.
Why It Matters: Legal recourse remains slow and costly, and many small entrepreneurs lack the time or resources to fight prolonged cases. For a sector driving jobs and exports, enforcing payment discipline is essential for India’s growth.
Business India: Dhanda Hai Yeh!
Image credits: Outlook Business
Big Tech Data Center Expansion Hits India Trade Snags: Major U.S. tech firms are delaying India data center projects amid rising trade tensions. Recent U.S. tariffs and higher H-1B visa fees have created investment uncertainty, leading companies like Amazon, Google, and Microsoft to rethink expansion plans despite India’s growing demand for digital infrastructure.
Russia-Pakistan JF-17 Engine Deal: Russia is reportedly set to supply RD-93MA engines to Pakistan for JF-17 fighter jets, raising concerns in India. While unconfirmed, opposition parties have criticized Moscow, questioning its defense ties with New Delhi. Russian experts suggest the deal could benefit India, as Pakistan remains dependent on Russian engines, making the jets predictable. Moscow has assured India the deal is purely commercial, with no technology transfer, and India continues to operate advanced RD-33 engines under license.
Eli Lilly's $1 Billion Investment: Eli Lilly has announced plans to invest over $1 billion in India over the coming years to enhance its manufacturing capabilities through partnerships with local drugmakers. This strategic move aims to increase the availability of key medications, including those for obesity, diabetes, Alzheimer's, cancer, and autoimmune conditions.
Boost For Pharma & MedTech Innovation: The Indian government has launched a ₹5,000 crore scheme to boost innovation in pharma and medtech. It targets new medicines, complex generics, biosimilars, and advanced medical devices like AI diagnostics and robotic surgery tools.
Ola Electric Gets Nod for Rare-Earth-Free Motor: Ola Electric becomes the first Indian EV maker to earn government certification for its in-house rare-earth-free ferrite motor. The move reduces reliance on imported materials and paves the way for more sustainable, cost-effective EVs in India.
India Plans Climate-Linked Insurance: India is exploring a nationwide climate-linked insurance program using a parametric model that triggers payouts when weather thresholds, like rainfall or windspeed, are crossed. The scheme aims to speed up compensation for extreme events, easing financial strain on citizens and the government, and could make India a leader in climate-focused insurance solutions.
China Urges India To Rejoin RCEP: Chinese economist Liqing Zhang suggested that India could boost trade with China by rejoining the RCEP, lowering tariffs, and enhancing competitiveness. He noted that India’s exports to China fell 14.4% in FY25 while imports rose, and stressed that resolving border issues could further improve trade and investment ties.
