Handpicked updates about India’s business and the business of India
In case you didn’t know, Peter Navarro (Trump’s senior counsellor for trade and manufacturing) is not India’s biggest fan. In his latest attack on Indian trade and oil purchases he first ranted a bit on X, got schooled through Community Notes, and then got pissed and set up a poll on ‘whether X should let Indian special interests masquerade as diverse viewpoints’? Unfortunately for him, in a very public KLPD moment, 75% of respondents said Yes. Moral of the story Peterbro: Don’t pick fights on X. There’s a reason why Trump uses Truth Social.
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 6.5 mins.
Markets 🔔🐂🐻
As of the Indian market close on Sept 8th
The Indian stock market closed higher on Monday, with the Sensex and the Nifty gaining significant points. Auto stocks outperformed on GST reform hopes, while the IT and FMCG sectors faced selling pressure.
Economy & Trade
HIRE Act: US Protectionism That Could Hit India’s IT Backbone
Image credits: Hindu
A New Wave of Protectionism in the US: Senator Bernie Moreno (R-Ohio) has introduced the Halting International Relocation of Employment Act - better known as the HIRE Act - which seeks to penalize American companies for hiring foreign workers instead of Americans. While framed as a move to protect the middle class, the Bill has set alarm bells ringing across India’s $250-billion IT services sector.
What Does the HIRE Act Propose? At the heart of the Bill lies a 25% excise tax on “outsourcing payments”. Importantly, these payments will also be non-deductible for tax purposes, raising the effective burden on companies even higher. To channel the funds collected, the Bill proposes the creation of a Domestic Workforce Fund, which will finance apprenticeships and workforce development programs with the aim to ensure American workers are prioritized and trained for the jobs that are today flowing overseas.
A Political Push, But Will It Pass? While Moreno has said the Bill will soon be placed on the Senate floor, the legislative path is complex since it involves taxation and amendments to the Internal Revenue Code. Experts note that corporate America is unlikely to remain silent, from tech giants to smaller firms, businesses rely heavily on offshore workers to stay competitive. Similar attempts in the past have faltered, but given today’s charged political climate, protectionist proposals may find more traction than before.
India Angle & Why It Matters: No country has more to lose in this debate than India. The US remains the biggest market for Indian IT services companies, accounting for nearly 60% of their revenues. Giants like TCS, Infosys, Wipro, and HCL Technologies, along with countless smaller IT and BPM firms, provide back-end operations, software development, cloud support, and customer services for American firms. If enacted, the HIRE Act would raise the cost of outsourcing, denting the profitability of US firms and potentially slowing the volume of work sent to India. Even freelancers, contractors, and captive centers could fall under its scope. While the availability of skilled talent in India makes a complete halt to outsourcing unlikely, companies may rethink the scale and pace of offshoring.
Energy & Environment
E20 Fuel Rollout Creates Panic
Image credits: Business Standard
The E20 Chaos: Modi government’s big bet on ethanol-blended petrol, called E20, has turned into one of the most heated debates on India’s roads. While the policy aims to cut crude imports, boost farmer income, and curb emissions, its sudden nationwide rollout has left consumers confused, the auto industry cautious, and motorists angry. E20 is petrol blended with 20% ethanol, derived mostly from sugarcane, maize, and rice. India began limited trials in 2023, but from April 2025, E20 has replaced older blends like E5 and E10 across 90,000 fuel stations, leaving motorists with no alternatives. The government projects big gains—$5 billion in forex savings and an additional ₹38,000 crore for farmers annually. It also touts E20 as a cleaner fuel.
Why Are Motorists Unhappy? Unlike Brazil or the U.S., where drivers can pick fuel blends, India has left consumers with no choice. Millions of cars and two-wheelers sold before April 2023 were designed for E5/E10. Drivers now complain of: 6–8% drop in mileage, engine knocking, corrosion, and clogged filters & higher out-of-pocket fuel bills despite ethanol being cheaper. Confusion deepened after some insurers suggested engine damage from wrong fuels may not be covered, though the government insists warranties remain valid.
Business India: Dhanda Hai Yeh!
Image credits: India Today
India-Israel Bilateral Treaty: India and Israel have signed a new Bilateral Investment Treaty (BIT) in New Delhi aiming to protect investors, ensure fair treatment, and enable independent arbitration to boost two-way investments. The agreement also paves the way for a Free Trade Agreement between the two countries in the coming months.
India-Nepal Tussle: Nepal’s ruling CPN-UML has called for India and China to withdraw their agreement to resume border trade via the Lipulekh Pass, claiming the area, along Kalapani and Limpiyadhura, as Nepali territory since it lies east of the Kali River. India has rejected Nepal's claim, stating it is neither justified nor historically accurate, and notes that trade through the pass has occurred since 1954. Nepal is now seeking high-level diplomatic talks to settle the dispute.
Doubling down on Russian Oil: India's state-owned refiners are trying to restart full purchases of discounted Russian crude oil, despite pressure from the U.S. Their efforts are currently stalled due to Russia redirecting its oil to China and increased competition from other suppliers. While India's peak buying phase may be over, the country remains committed to the trade, despite U.S. pressure and potential sanctions aimed at Russia.
Fast-Track Infra projects: India is expediting large infrastructure projects to sustain growth. Focusing on long-term plans for "Viksit Bharat 2047," a high-level committee will fast-track projects like bullet trains, new ports, and highways. The government aims to build 50,000 km of access-controlled highways at an investment of over ₹20 lakh crore over the next 10-12 years, with a significant part coming from private partnerships.
Indigenous Camera Push: An Indian semiconductor consortium, led by Kaynes Semicon, has secured contracts to supply over 5 lakh indigenous dash and surveillance cameras. The deal, which includes major players like NXP Semiconductors, aims to reduce India's reliance on imported modules and foreign IP.
Secured Card Rush: Banks and fintech companies in India are now offering credit cards secured by fixed deposits (FDs) with low limits, some as low as ₹90. This strategy helps them reach new users and expand into the untapped credit market, especially for those without a credit history. While around 100,000 such cards are issued monthly, industry experts note that less than 20% of these users eventually qualify for unsecured credit cards.
World 🌏
Inside China’s Brutal Instant Delivery War
Image credits: South China Morning Post
Retail Roulette: China’s e-commerce giants are no strangers to fierce competition, but what’s happening now in the world’s second-largest economy is more than just rivalry, it’s a price war that could reshape how millions shop, eat, and live. Instant retail: the promise of groceries, meals, and essentials delivered in under an hour, may sound like convenience heaven but is turning into a profit nightmare, with companies burning billions to outpace each other and regulators getting increasingly uneasy.
How the War Began: The spark was lit earlier this year when JD.com, alarmed by Meituan’s push into selling a wider range of products, decided to launch its own food-delivery arm. Alibaba, which runs Ele.me, quickly joined the fray, pouring money into instant delivery. Within months, billions of yuan were pledged to win over users with aggressive subsidies, discounts, and even “zero-yuan” campaigns, essentially free orders. Analysts at Nomura estimate that in just the second quarter, industry-wide cash burn exceeded $4 billion. S&P Global forecasts that Meituan, JD.com, and Alibaba will together spend at least 160 billion yuan ($22 billion) over the next 12 to 18 months. On paper, the strategy makes sense: grab users now, monetize them later. But in practice, the losses are already piling up. Still Executives argue that this pain will pay off. Alibaba’s Jiang Fan has gone as far as predicting instant retail could add 1 trillion yuan in gross merchandise value in the next three years. For now, though, margins are collapsing, and deflationary pressures in China’s sluggish economy make every discount even more biting.
The Consumer Conundrum: For shoppers, this war is a mixed blessing. On the one hand, ultra-cheap deals are flooding apps, tempting even cautious consumers. On the other, there’s growing concern about whether these subsidies are sustainable. It also raises broader economic worries. China is already battling weak consumer confidence, falling property prices, and youth unemployment. A “race to the bottom” in e-commerce only deepens fears of entrenched deflation.
DuniyaDIARY 🌏📒
Image credits: Yahoo News
Trump-Linked Venture Fund Surpasses $1 Billion: 1789 Capital, a venture firm aligned with conservative values and linked to Donald Trump Jr., has quietly grown its assets to over $1 billion since Trump’s election victory. The fund, originally niche, expanded rapidly following Don Jr.’s entry and has invested in defense firms, AI startups, Elon Musk’s ventures like SpaceX and Neuralink, and even Polymarket, a prediction-market platform. Ethics experts warn Don Jr.’s dual role raises potential conflicts of interest given his familial ties to the administration.
Alibaba’s $100 Million Funding: Alibaba Cloud has led a $100 million investment round in Shenzhen-based humanoid robotics startup X Square Robot, raising the company’s total funding to approximately $280 million. This strategic move signals Alibaba’s deepening push into advanced embodied intelligence and robotics development.
Nepal Home Minister Resigns: In Nepal, youth-led demonstrations erupted after the government banned 26 social media platforms. The protests turned violent as demonstrators attempted to storm Parliament, provoking a harsh police response that left at least 19 people dead and hundreds injured. In the wake of the bloodshed, Home Minister Ramesh Lekhak resigned on moral grounds, and curfews were swiftly imposed across Kathmandu and other cities.
Japan’s First Woman Prime Minister? Shigeru Ishiba stepped down following his party’s electoral setbacks and rising living costs, opening the way for a leadership contest. Key contenders now include veteran Sanae Takaichi, who could become Japan’s first female prime minister, and young reformist Shinjiro Koizumi.
Bus Stop Shooting in Jerusalem Rocks City: Two Palestinian gunmen opened fire at a bus stop near Jerusalem’s Ramot Junction, killing six civilians and injuring more than 20, according to Israeli police. The attackers were shot dead on the scene by a soldier and an armed civilian.
Aur Batao 📰
SC Allows Cognizant To Use Logo In India: The Supreme Court of India has overturned a Bombay High Court order that had prohibited Cognizant Technology Solutions from using its logo in India. This decision allows the U.S.-based IT firm to resume using its logo on its website and social media platforms in India. The legal dispute stemmed from a trademark infringement suit filed by Bengaluru-based Atyati Technologies.
India's Oil Demand To Surpass China's: According to Trafigura Group, India's oil demand is projected to outpace China's demand this year, excluding China's strategic stockpiling. Factors such as urbanization and rising incomes are driving India's growth, while China's crude consumption is slowing, except in petrochemicals.
WhatsApp Faces Major Outage: WhatsApp experienced a significant outage on Monday, leaving thousands of users across India unable to send messages or upload status updates. Despite numerous complaints, Meta Platforms has not yet acknowledged the outage.
GST Reset to Boost Dairy Sector: The recent GST rate cuts on dairy products are set to benefit the sector significantly. Industry experts estimate this move will boost the dairy sector by approximately ₹11,400 crore, enhancing farmer incomes and encouraging a shift from unorganised to organised markets.
