📏 AI Physics

Good morning. NASA astronauts Sunita Williams and Barry "Butch" Wilmore have returned to Earth after a nine-month stay on the International Space Station, initially planned as an eight-day mission.

Finally 👏 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 💰️ UPI Incentive Scheme

• 📏 AI Physics

• 🗞️ Bite-sized summaries

  • 🛵 Uber’s new safety measures

  • 📉 Foreign Investors pulling out of Indian markets

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian markets extended gains for the third consecutive session. Financials and realty sectors led the gains, while IT stocks underperformed. The broader market outperformed, with midcap and smallcap indices rising over 2% each.

🌍️ International

• US stocks rallied after the Federal Reserve kept interest rates unchanged. The rally was driven by the Fed's decision to maintain rates at 4.25%-4.50% and expectations of potential rate cuts later this year.

FRAUD PREVENTION

💰️ UPI Incentive Scheme

In a move to boost digital payments and support local businesses, the Indian Cabinet has approved a ₹1,500 crore incentive scheme to promote small-value UPI transactions for FY2024-25. This initiative, effective retrospectively from April 1, 2024, to March 31, 2025, will offer small merchants a 0.15% incentive per UPI transaction below ₹2,000, with zero Merchant Discount Rate (MDR) charged.

Here’s the breakdown:

• The scheme exclusively benefits small merchants, helping them adopt digital payments without incurring transaction fees.

• Merchants will receive 0.15% per eligible transaction. Additionally, 80% of incentive claims will be reimbursed quarterly to banks unconditionally, with bonuses awarded for maintaining high service standards.

• Customers can continue making seamless, fee-free UPI payments for everyday purchases—from groceries to tea—at local stores.

Why is this important?

• India has witnessed explosive growth in digital payments, largely driven by UPI (Unified Payments Interface).

• Between FY2021-22 and FY2023-24, digital transactions surged from 8,839 crore to 18,737 crore, with UPI contributing a lion’s share—growing from 4,597 crore to 13,116 crore transactions during the same period.

The "Incentive Scheme for the Promotion of RuPay Debit Cards and Low-Value BHIM-UPI Transactions" has been instrumental in this growth, encouraging digital adoption among consumers and small merchants alike.

What does this mean for India?

This scheme aligns with India’s broader digital transformation goals, fostering financial inclusion, formalizing the informal economy, and reducing reliance on cash. For small businesses, it lowers barriers to digital adoption, enhances customer convenience, and potentially increases footfall.

By removing transaction fees and offering financial incentives, the government ensures that even the smallest merchants can benefit from the digital economy. This is especially crucial in Tier II, III cities and rural areas, where digital payment penetration is still evolving.

Moreover, the initiative reinforces India’s position as a global leader in real-time digital payments, paving the way for a more inclusive, efficient, and transparent financial ecosystem.

Read more: Economic Times

ARTIFICIAL INTELLIGENCE

📏 AI Physics

At the GPU Technology Conference (GTC) 2025, Nvidia CEO Jensen Huang announced a groundbreaking collaboration with Disney Research and Google DeepMind to develop Newton, a new physics engine designed to simulate realistic robotic movements in the real world.

Newton aims to bridge the long-standing “sim-to-real” gap, where virtual simulations often fall short in mimicking real-world physics. This engine will allow robotics developers to create more accurate, expressive, and adaptable robots capable of complex tasks. It supports diverse behaviors, custom interactions, and advanced features such as differentiability—making robots not only more precise but also more lifelike in their actions.

One of the first practical uses of Newton will be with Disney’s next-generation entertainment robots, including BDX droids inspired by Star Wars. These robots are part of Disney’s vision to bring interactive, autonomous characters to theme parks around the globe. Disney has already demonstrated these droids in controlled settings, and with Newton, they plan to push the boundaries even further.

Kyle Laughlin, senior VP of Walt Disney Imagineering R&D, emphasized that “BDX droids are just the beginning,” hinting at more advanced, lifelike characters in the pipeline.

Nvidia plans to release an early, open-source version of Newton later in 2025, inviting broader innovation and development in the robotics community.

In addition to Newton, Nvidia showcased several major AI advancements at GTC 2025, including:

• AI personal supercomputers powered by the new Grace Blackwell chip platform.

• Groot N1, an AI foundation model designed to enhance humanoid robots’ perception and reasoning.

• A roadmap for future AI chips, including Blackwell Ultra and Rubin.

This partnership and the launch of Newton signal a new era in robotics, where virtual simulations meet real-world precision to bring interactive robots closer to everyday life.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🛵 Uber’s new safety measures - Uber has introduced AI-powered safety features for its two-wheeler service, Uber Moto, aiming to improve helmet use and overall rider safety. New measures include helmet selfies for drivers and in-app reminders for riders. Uber will also distribute 3,000 safety kits—containing helmets, reflective vests, and protective gear—starting in Delhi. With over half of Uber rides in India on two-wheelers, these steps support safer roads and flexible earning for drivers. Government officials praised the move, highlighting the role of technology and high fines in promoting road safety and reducing traffic violations.

📉 Foreign Investors pulling out of Indian markets - Foreign institutional investors (FIIs) are selling Indian equities amid global uncertainty, driven by US policy shifts, high interest rates, and underperformance of emerging markets. Experts say this trend may persist in the short term. Nilesh Shah of Kotak Mahindra AMC links the sell-off to US tax cut expectations and protectionist policies. He notes that while some FIIs are buying, long-term funds are pulling out. Market expert Karthik Kumar points to rising global yields and currency trends as key drivers. FIIs may return when global interest rates fall, bond yields decline, and the rupee stabilizes.

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• Vodafone Idea in talks with Musk's Starlink? Telco clarifies.

• Will Elon Musk-led DOGE change federal services in US forever?

• India-EU brainstorm on preventing & countering violent extremism.

• Policymakers must balance rising prices due to tariffs & currency depreciation.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• The Diplomat box office collection Day 5:John Abraham's movie crosses ₹15 Cr.

• Badminton: Kidambi Srikanth edges past HS Prannoy in all-Indian first round clash at Swiss Open.