🌐 The 3i Strategy

Good morning and a happy new year. We know it's been a week since the start of 2025, but today is officially the first day back in the office - so you have another week of socially acceptable Happy New Year wishes.

May your coffee be strong, your small talk skills sharp, and your professional poker face impenetrable ☕️ 🙏

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🤖 Agentic AI Innovation

• 🌐 The 3i Strategy

• 🗞️ Bite-sized summaries

  • 🎖️ Musk ain’t happy

  • 🇺🇸 What’s happening with the TikTok ban in the US?

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian stock markets ended lower on Friday. The decline was led by weakness in IT, pharma, and banking sectors. Despite the overall market downturn, some stocks like Eicher Motors, Mahindra & Mahindra, and HCL Tech hit their 52-week highs. The market's performance broke a two-day winning streak, reflecting a cautious start to the new year.

🌍️ International

• U.S. stock markets closed higher on Friday. Tech stocks led the rally, with Nvidia and Tesla performing strongly. Despite the day's gains, markets remained down for the week, reflecting a cautious start to 2025 amid mixed economic signals.

GENERATIVE AI

🤖 Agentic AI Innovation

The year 2025 is set to be the breakthrough moment for AI agents, as tech giants like Google, OpenAI, and Salesforce ramp up their focus on this transformative technology. Unlike traditional AI models, AI agents bring end-to-end capabilities that extend beyond language processing to reasoning, planning, and executing tasks autonomously.

Agent frameworks are redefining the possibilities of automation by merging generative AI (GenAI) with advanced toolsets to solve complex business problems. These autonomous systems can optimise workflows, handle intricate tasks, and even adapt to user needs through memory-based learning. With projected market growth from $5.29 billion in 2024 to $216.8 billion by 2035, AI agents are shaping the future of industries ranging from healthcare to finance.

Companies like Infosys, SAP, and IBM are betting big on these “special agents.” Infosys CEO Salil Parekh highlights their potential to revolutionise efficiency and innovation across verticals. Meanwhile, Google’s Gemini 2.0 and OpenAI’s upcoming “Operator” hint at an exciting shift from reactive AI to proactive problem solvers capable of collaborating across platforms and industries.

The benefits are clear: hyper-personalised customer experiences, seamless integration with IoT systems, and streamlined operations. Experts predict 80% of organisations will adopt AI agents by 2026, positioning them as indispensable collaborators in business strategy and decision-making.

However, challenges like trust, transparency, and upskilling remain hurdles to full adoption. Still, with India’s vast data potential and declining implementation costs, the nation is poised to leverage AI agents to unlock unprecedented productivity. As 2025 unfolds, the rise of “superagents” promises a new era of autonomy, innovation, and collaboration in the AI landscape.

Read more: Economic Times

ECONOMIC GROWTH

🌐 The 3i Strategy

Economic growth isn’t just about numbers—it’s about strategy, and the World Bank’s 3i Strategy—Investment, Infusion, and Innovation—offers a proven pathway for nations to climb the economic ladder.

• Investment Phase: This foundational stage focuses on channelling resources into critical infrastructure, attracting capital, and building the frameworks that drive productivity.

• Infusion Phase: Next comes the adoption of foreign technologies and expertise. By integrating global best practices, economies can accelerate industrialisation and enhance efficiency.

• Innovation Phase: In the final stage, countries transition from being consumers of foreign technology to creators of homegrown advancements, leading in cutting-edge industries and redefining global markets.

This structured approach ensures steady progress and guards against stagnation, helping nations avoid the middle-income trap. For India, this strategy isn’t just a theory—it’s a reality in the making.

India has successfully embraced the Investment Phase, with significant public and private spending on infrastructure. Now, it is advancing through the Infusion Phase, driven by foreign direct investment (FDI).

Recent data illustrates India’s momentum:

• FDI inflows surged by 42% in early 2024, reaching $42.13 billion.

• Key industries like manufacturing, IT, and telecommunications have benefited while manufacturing FDI equity has soared by 69% over the last decade.

• India also averaged $4.5 billion in monthly FDI inflows in 2024, defying global uncertainties.

Additionally, India is leveraging FDI not just to grow, but to innovate:

• Initiatives like the Production-Linked Incentive (PLI) scheme are catalyzing high-value manufacturing and fostering a culture of technological advancement.

• Partnerships blending global expertise with India’s entrepreneurial energy are reshaping industries, especially in IT, renewable energy, and artificial intelligence.

Overall: India’s journey through the 3i Strategy positions it as more than a destination for investment—it’s becoming a hub for innovation. With FDI fuelling its transition to the Innovation Phase, India is poised to redefine its role in global economics, shaping the future with sustainable, technology-driven growth.

The world is watching, and India is ready to lead.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🎖️ Musk ain’t happy - Tesla CEO Elon Musk criticised President Joe Biden for awarding billionaire philanthropist George Soros the Presidential Medal of Freedom, calling the decision a “travesty.” Musk further compared Soros to a Star Wars villain in a meme, sparking widespread debate. Soros was recognised for his contributions through the Open Society Foundations, which promote democracy, human rights, and social justice worldwide. He was among 19 recipients of the prestigious award, which included notable figures like Michael J. Fox and Denzel Washington. The honor acknowledges individuals making significant contributions to society and upholding American values globally.

🇺🇸 What’s happening with the TikTok ban in the US? The U.S. Supreme Court will decide on January 10 whether TikTok must sever ties with its Chinese parent company, ByteDance, or face a U.S. ban by January 19. Creators relying on TikTok for their livelihoods are anxious about the potential fallout, with many exploring alternative platforms like Instagram and YouTube. The government cites national security risks, while TikTok argues the ban violates the First Amendment. Former President Trump has requested a delay, favouring a negotiated resolution. If enacted, the ban could render the app unworkable, disrupting the creator economy, valued at $480 billion, and impacting marginalised creators significantly.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Is it time for India to rethink its forex reserve strategy?

• Delhi authorities issue guidelines to prevent HMPV breakout.

• Manager explains why Oyo hotels in Meerut are turning away unmarried couples.

• Commerce ministry, Indian mission officials of 20 nations to discuss ways to boost exports in Jan 6-8 meet.

• Jeff Bezos's Blue Origin poised for first orbital launch next week.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Shahid Kapoor’s Deva teaser out now.

• Box Office: ‘Mufasa’ wins with $23.8M, ‘Sonic 3’ sits at No. 2 as franchise crosses $1B globally.

• Lakshya Sen stopped in semis of King Cup International.

• Tennis:

  • Team USA triumphs over Team Poland in the United Cup final in Sydney.

  • No.1 Aryna Sabalenka advances to the final of the Brisbane International defeating rising Russian star Mirra Andreeva.