Handpicked updates about India’s business and the business of India
Messi may just have dazzled Buenos Aires one last time, bagging a brace in Argentina’s 3-0 cruise past Venezuela. While fans were hoping for Qatar 2022 repeat, the captain dropped a classic curveball - saying “ I’ll see match by match, I’ll finish the season, then preseason, and in six months, see how I feel” to questions on whether he will play in the 2026 World Cup. Someone please tell him Ronaldo is in the Portugal squad - we’re not done with them just yet.
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 6 mins.
Markets 🔔🐂🐻
As of the Indian market closed on 5th Sept
The Indian stock market ended flat on Friday with the Sensex closing slightly down, while the Nifty ended marginally higher. The markets saw considerable profit booking in IT and consumer shares outweighing gains in autos after tax cuts were proposed under the “GST 2.0” overhaul.
Economy
India’s Answer To Trump’s Tariffs: Boycott
Image credits: Telegraph India
Trump’s Tariff Threats: Donald Trump echoed his “America First” playbook with steep duties and a blunt message - conform to U.S. policy, or face punitive tariffs. With brutal 50% levies targeting India, the president's trade threats are sparking resistance movements.
India Answers Back: Just as Trump’s tariff hammer came crashing down with a huge levy on Indian goods, the response on the ground was emotional, loud, and very, very local. Almost overnight, calls to boycott American products flooded social media, WhatsApp groups, and TV debates. Names like Pepsi, McDonald’s, Coca-Cola, Amazon, and Apple became symbolic villains of this trade spat, accused of being extensions of Washington’s “economic bullying.” Adding fuel to the fire, yoga guru and business magnate Baba Ramdev declared Trump’s tariffs as “political hooliganism,” urging Indians to give up U.S. fast food chains and sodas in favor of Indian-made alternatives. Now, homegrown giants like Dabur have seen an opening and aim to go straight for the jugular. In a cheeky, unmistakable ad campaign, the company pushed its toothpaste brand as the “true Indian choice.” The ads carried strikingly familiar packaging that looked suspiciously close to Colgate, one of its biggest rivals with American roots.
Global Responses to Trump’s Tariff Tactics
Canada: The backlash isn’t contained to South Asia. Up in Canada, the backlash to Trump’s tariff threats blossomed into a cultural movement known as “Elbows Up.” Borrowing from hockey (the sport that defines Canadian grit) it captures the national readiness to fight back - entire provinces withdrew U.S. liquor from shelves. Many Canadians canceled travel plans south of the border and embraced homegrown brands. The sentiment - a rallying call not only of resistance but also of redefining identity amid trade jolts.
Europe: In countries like France, Sweden, and Denmark, grassroots campaigns such as “Boycott USA: Buy French and European!” have gained traction. In Sweden, over 80,000 members joined such Facebook groups; in Denmark, 90,000+ did the same.
Asia’s Calculated Countermeasures: China retaliated robustly, other countries mobilized swiftly convening emergency meetings, preparing industrial support measures, and opening negotiations with Washington to limit tariff damage.
The Global South, including Brazil and South Africa, is reportedly aligning more closely with China and Russia. Some BRICS nations are even considering mechanisms to bypass the U.S. dollar in trade.
Economy & Business
OpenAI Deepens India Play
Image credits: NDTV
A Bold Bet on India: For OpenAI, India isn’t just another dot on the global map - it’s the fastest-growing and second-largest market after the U.S. The company is finally putting down roots, with its first office set to open in New Delhi later this year; signalling its intent to be closer to India’s policymakers, entrepreneurs, and its swelling base of everyday ChatGPT users.
Stargate, Building Big in Bharat: The big-ticket item is OpenAI’s ambitious Stargate project - a $500 billion mega-plan that includes building a gigawatt-scale data center in India. Details on location and timeline remain under wraps, but one thing is certain, OpenAI will need strong local partners. Whispers in industry circles suggest Sam Altman himself may drop the announcement when he lands in India this September.
AI in Classrooms, Not Just Servers: But OpenAI’s India pitch isn’t only about power plants and server racks. Through its Learning Accelerator initiative, it’s rolling out 500,000 ChatGPT licenses in collaboration with IIT Madras and education boards. The focus is empowering government school teachers and technical institutes to integrate AI into lesson plans, making classrooms smarter and students more future-ready.
Why It Matters: OpenAI is weaving itself into India’s fabric - from infrastructure and education to policy engagement, the company is moving from being just a chat platform to becoming a strategic partner in shaping India’s AI journey.
Business India: Dhanda Hai Yeh!
Image credits: Indian Express
Apple's India sprint: Apple's India revenue hit a record $9 billion in FY25, a 13% increase from last year, largely fuelled by soaring iPhone demand and a boost from MacBooks. To sustain this momentum, Apple is expanding its retail footprint with new stores in Bengaluru, Pune, Noida, and Mumbai. The company is also deepening local manufacturing to reduce reliance on China. With a market share near 7%, Apple is using discounts and bank tie-ups to counter the high base price.
SBI's record bonds: State Bank of India successfully raised $500 million via a dollar bond sale, achieving the tightest-ever pricing for an Indian issuer at 75 basis points over the five-year US treasury. This achievement follows Standard & Poor's recent credit rating upgrade for India to BBB from BBB-, reflecting growing global confidence in the nation's economic stability and growth.
Sparkle’s tax cut: The GST Council has provided relief to the gems and jewellery sector by exempting imports of natural cut and polished diamonds up to 0.25 carats from the 18% IGST. The industry, through the Gem and Jewellery Export Promotion Council, believes these changes will ease working capital pressures, lower costs for consumers, and boost domestic demand amidst global export challenges.
India’s diesel boom: Europe is stockpiling ahead of a 2026 ban on fuels refined from Russian crude, which has caused India's diesel exports to the continent to surge to an 11-month high of 260,000 bpd in August. This represents a 63% month-on-month and 103% year-on-year increase. Reliance accounted for all of the Europe-bound diesel flows.
World 🌏
U.S. Jobs Market Stumbles
Image credits: WSJ
Hiring Hits the Brakes: The U.S. job market sputtered in August, adding just 22,000 jobs, a dramatic slowdown that has set alarm bells ringing. The unemployment rate ticked up to 4.3%, the highest in nearly four years, indicating a cooling labor market that had, until recently, been remarkably resilient. Revisions made the picture even bleaker. June’s job numbers were sharply corrected to show a loss of 13,000 jobs - the first monthly decline since the dark days of December 2020. From January through August, employers have created only 598,000 positions, making 2025 the weakest year for hiring since 2009, pandemic aside.
A Tale of Two Economies: The slowdown isn’t uniform. Some sectors are still chugging along, while others are feeling the full weight of economic headwinds. Healthcare and social assistance stood out as bright spots, adding nearly 47,000 jobs in August, highlighting enduring demand for essential services. Leisure and hospitality also showed modest gains, reflecting steady consumer spending in pockets of the service economy. But the broader picture was grim: manufacturing, construction, government jobs, and professional services all posted declines. The divergence reveals an economy where essentials hold firm, but industries tied to investment, global trade, and government budgets are stalling.
What’s Dragging Hiring Down? Economists point to a cocktail of policy and structural pressures:
Tariffs: Trump’s steep 50% import duties have raised costs for businesses, squeezing hiring plans.
Immigration restrictions: Tighter rules have cut off a vital labor supply in sectors like construction and services.
Automation & AI: Companies are leaning more on technology to boost efficiency rather than adding headcount.
Policy uncertainty: With trade wars flaring and regulatory shifts looming, many firms are playing defense.
In short, companies are more cautious and that caution shows in payrolls.
Markets Cheer, Fed on the Clock: Ironically, Wall Street welcomed the weak report. Bond yields dipped, and equities edged higher as investors bet the Federal Reserve now has a clear case for cutting interest rates at its September meeting. Some analysts are even pricing in multiple cuts before the end of the year to cushion the slowdown. For markets, bad news on jobs translated into good news on rates but for households, the pain is real. Rising unemployment and sluggish hiring could dent consumer confidence heading into the holiday season.
World 🌏
Milan Transforms Into Magnet For The Super-Rich
Image credits: Italian Luxury
Italy’s Flat-Tax Boom: Italy’s controversial flat-tax program is quietly reshaping the financial dynamics especially in Milan, which is emerging as a new hotspot for global elite migration. Introduced in 2017, the scheme allows wealthy newcomers to pay a fixed annual tax of €200,000 on foreign income, regardless of the actual amount, exemption from wealth and inheritance taxes, and simplified reporting rules. Europe’s mobile millionaires, many departing from post-Brexit UK and high-tax France, are finding a compelling mix of high-quality lifestyle, legal certainty, and strategic location in Milan. The city has drawn big names from finance, private equity, and sports, transforming its urban character with elite social clubs, upscale amenities, and soaring real-estate demand.
Local Boom, Global Ripples: This influx has driven luxury property prices sharply higher, igniting concerns around affordability and social inequality among longtime residents. Critics worry it deepens fiscal imbalance and alienates citizens.
Why It Matters: Italy’s flat-tax model sets it apart on the European stage, fostering an elite financial ecosystem even as broader tax regimes tighten. As Milan continues to attract global wealth, the policy’s long-term social and economic consequences, beyond immediate fiscal gains are becoming harder to ignore.
DuniyaDIARY 🌏📒
Image credits: WSJ
China Bails On Pakistan Project: China has decided to exit its flagship $60 billion China–Pakistan Economic Corridor (CPEC) project, ceasing financing after prolonged negotiations. Pakistan is now seeking a $2 billion loan from the Asian Development Bank (ADB) to modernize the Karachi–Rohri section.
Musk Set to Be First Trillionaire? Tesla’s board has proposed a historic compensation package for CEO Elon Musk, potentially worth $1 trillion, payable entirely in company shares if ambitious long-term performance goals are met, including increasing Tesla’s market cap from around $1.1 trillion to $8.5 trillion, launching robotaxis, and scaling AI robotics.
Trump Says Apple’s Safe: President Donald Trump has signaled that “fairly substantial” tariffs on imported semiconductors are imminent, targeting companies that don’t relocate production to the U.S. However, firms like Apple, which have committed sizable domestic investments, are expected to be spared from levies. The announcement comes amid ongoing legal scrutiny of Trump’s broader tariff strategy.
Hyundai Construction Halted After Massive ICE Raid in Georgia: U.S. authorities detained approximately 475 workers, many of them South Korean nationals, during a major immigration enforcement raid at a Hyundai-LG battery plant construction site in Georgia, pausing the project in its tracks.
Aur Batao 📰
Mumbai on terror alert: Mumbai is on high alert after a WhatsApp threat from Lashkar-e-Jihadi claimed ‘34 human bombs’ and 400 kg of RDX would be used during the Ganesh Visarjan festival. Officials are investigating, but some suggest it may be a hoax.
Top College Rankings: In the National Institutional Ranking Framework (NIRF) rankings 2025, Delhi University saw its best performance yet, with 32 of its colleges making the list. Hindu College and Miranda House ranked as the top two colleges in India. Other top Delhi institutions included JNU at number two and Jamia Millia Islamia at number four among universities. IIT Delhi and AIIMS Delhi also maintained top spots in their respective categories.
