July 30: PM Modi speech, BluSmart enters insolvency

Good Morning!

OpenAI CEO Sam Altman revealed during a podcast that personal conversations with ChatGPT, especially if used for emotional or legal advice, lack legal confidentiality protections. So next time you think of trauma dumping or sharing your darkest secrets, just remember that your digital BFF could make things weird for you in court.

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 4 mins.

The Indian stock market rallied strongly on Tuesday, snapping the three-day losing streak. The rise was driven by strong performance from major companies like Reliance Industries and HDFC Bank.  

Tata Consultancy Services (TCS) - one of India’s largest private sector employers - recently announced that it will lay off 12,000 employees at middle/senior management levels, citing a “skills mismatch.” But many believe automation and AI adoption are driving this shift, as the company retools for a tech-forward future. TCS isn’t alone — this trend is industry-wide and is sparking fresh anxiety in India’s poster-child software sector that contributes $283 billion annually and supports over 5 million jobs in India.

Seismic changes: The software sector which forms the backbone of formal, white-collar employment in the country is facing a seismic shift. Estimates suggest 50,000 tech jobs were lost in India last year alone. Additionally, net new hires at the top six IT firms dropped by a massive 72%, with tech hubs such as Bengaluru and Hyderabad feeling the most heat. It’s not just India - global behemoths like Intel, Microsoft, and Meta have trimmed their workforces too. What we’re seeing is a structural shift, not a temporary adjustment.

Ripples: All of this could have cascading effects on India's broader economy. In the absence of a strong manufacturing sector, these software companies - which made India the world's back office in the 1990s - were the preferred employment option for hundreds of thousands of new IT workers. They birthed a new, affluent middle class, spawning growth in many cities and fueling demand. But India's services-led economic boom may not be able to sustain the future as the sector faces intense pressure from AI. While sectors such as emerging startups and GCCs (global capability centres) may absorb some of this pressure (and people), there will still be a large gap.

Final take: The tech layoffs aren’t just corporate measures, but rather a larger structural shift. As AI reshapes roles, India’s middle class, long buoyed by IT careers, now faces rising uncertainty.

Parliament witnessed a fiery session on Day 2 of the debate on Operation Sindoor on Tuesday. Prime Minister Narendra Modi addressed Parliament for more than 1.5 hours, here are the key highlights from his speech about Op Sindoor:

Big Picture: PM’s forceful Parliament address painted Operation Sindoor as a declaration of military self-reliance and resolve. However, opposition leaders, while accepting the necessof a response, raised concerns over strategy, transparency, and the politicisation of national security.

Lenskart gears for IPO: Eyewear giant Lenskart, co-founded by Peyush Bansal, has filed its IPO papers for an expected ₹7,500–₹8,000 crore offering. This includes a fresh issue of ₹2,150 crore in shares and an offer-for-sale of up to 132.3 million shares by existing investors like SoftBank, Alpha Wave, and Kedaara Capital.

BluSmart files for insolvency: Indian electric cab firm BluSmart has entered insolvency amid mounting corporate governance issues after a regulatory probe alleged its co-founder diverted funds meant for vehicle purchases. BluSmart had suspended operations in April. BlueSmart cofounder Anmol Jaggi had been banned from the securities market following allegations that he diverted funds from his publicly listed affiliate, Gensol, for personal use — including the purchase of a $5 million luxury apartment and a golf set worth $30,379.

India’s defence exports surge: India's defence exports hit ₹23,622 crore in 2024-25, a 12% jump from the previous year with sales to over 80 countries, including the US and France. The government is now aiming for a ₹50,000 crore target by 2029.

UPI to get a face-lift: Soon, you can use biometrics (i.e. fingerprints or face ID) for UPI payments, making PINs optional. This NPCI update aims to boost security and convenience, especially as UPI handles over 80% of India's digital transactions. 

India’s smartphone lead: India now produces 44% of all smartphones shipped to the US, a massive surge driven by Apple's increased iPhone manufacturing. This shift significantly reduced China's share from 61% to 25% in Q2 2025, amid tariff uncertainties.

Manhattan shooting tragedy: A gunman killed four people, including an NYPD officer, in a Midtown Manhattan office tower before dying by suicide. The shooter had an M4 rifle; the motive is still under investigation.  

Tariff pe tarrif: As the August 1 tariff deadline looms, Donald Trump plans 15-20% tariffs on countries with no US trade deals, potentially impacting India as negotiations are still ongoing. This is a hike from his previous baseline tariff of 10%.  

China still struggling with low birth-rates: China is offering parents $1500 for each child under three, in a nationwide bid to boost declining birth rates. This will support 20 million families, address high childcare costs, and hopefully incentivize citizens to have children. China’s population fell for a third straight year in 2024. 

Ukraine-Russia war goes digital: Russia's national airline, Aeroflot, suffered a major cyberattack on Monday by two pro-Ukraine hacker groups (claimed), disrupting over 100 flights. Reports suggest it might take up to a year for their IT systems to fully recover. 

Tea’s data hacked: A US based woman's dating safety app, Tea, which has 4.6M users, and allows women to vet men is facing a privacy crisis. Tea’s data was hacked, exposing 72,000 member images, IDs and direct messages including sensitive conversations around abortions and infidelity. The app has suspended direct messaging "out of an abundance of caution".

Trudeau and Katy? International pop superstar Katy Perry and former Canadian PM Justin Trudeau were spotted dining together Monday night at a high-end restaurant, sparking rumours of a budding romance.

SC’s student guideline for mental health: Supreme Court issued 15 guidelines for educational institutions, including mandatory mental health policies, counsellors and measures to reduce academic pressure to prevent student suicides. An estimated 13,000 students commit suicide every year, making up 7.6% of total suicides deaths in India.

India's flood vulnerability: A new study reveals India has the most slum dwellers globally living in flood-prone areas, with over 158 million people at risk - particularly in the Ganga river delta. This highlights a critical lack of targeted flood risk management.

From Mumbai to Romania: Harshika Jain, a 22-year-old footballer from Mumbai, just scripted history as the first Indian woman to sign with Romanian football club Atletic Olimpia Gherla.

National decathlon record broken: Indian athlete, Tejaswin Shankar, just broke his decathlon national record in Poland, scoring 7826 points and finishing 4th. He'd set the previous record of 7666 at the 2023 Asian Games.  

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