🇮🇳 Friends, Tariffs, and Chips

Good morning. Not every collab makes you smile - but Aamir Khan and Sunil Grover’s did.

Here’s what else is happening ⬇️

Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🇮🇳 Friends, Tariffs, and Chips

• 🔋 Reliance bets big on batteries

• Bite-sized summaries

  • 🤖 Grok, NSFW, and the AI Safety Trap

  • 📈 Local Growth Engine

• 🧑‍🍳 What else is cookin’?

POWER GAMES

🇮🇳 Friends, Tariffs, and Chips

Washington just sent a clear signal to New Delhi. Sergio Gor, President Trump’s point man in India, has landed and is moving fast. His message is straightforward: the US wants a deeper partnership with India, even if that means working through friction rather than pretending it does not exist.

Until recently, India–US ties were stuck in a holding pattern. Trade talks collapsed last year, tariffs on Indian goods were raised to 50 percent, and New Delhi was penalised for buying Russian oil. The relationship did not fall apart, but it did cool. The status quo became polite engagement with sharp edges.

Gor is now pushing for a reset. He calls the relationship a real friendship, one where disagreements are expected but not fatal. That framing matters, because it creates space to restart talks without either side losing face. A fresh round of trade discussions could begin as early as January 13, suggesting both capitals want movement, not stalemate.

The visit is also about the future, not just old disputes. Gor announced that India will be invited to join PaxSilica, a US-led effort to build secure supply chains for semiconductors, AI, and critical minerals. In simple terms, this is about who controls the raw materials and factories that power tomorrow’s technology.

Zoom out, and the signal is clear. Washington sees India as central to its economic and strategic plans. For India, this is a chance to shift from being a negotiating partner under pressure to a core player in the global tech and security ecosystem.

Read more: Economic Times

EV BATTERY

🔋 Reliance bets big on batteries

Reliance Industries wants the record set straight. After reports suggested the company had paused plans to manufacture lithium-ion battery cells in India, the Mukesh Ambani-led conglomerate has come out swinging, saying its battery ambitions are very much alive and on schedule.

Here’s the backdrop. Reliance has been positioning itself as a major player in India’s clean energy push, with plans to build everything from battery cells to full-scale energy storage systems. The assumption was that Chinese technology would help jump-start this effort, given China’s dominance in battery manufacturing. But that path hit a wall. Beijing tightened controls on exporting lithium battery technology last year, and talks with Chinese firm Xiamen Hithium reportedly stalled.

That sparked speculation that Reliance was hitting the brakes.

The company says otherwise. Its message is that nothing fundamental has changed. The goal of creating a “world-leading” battery storage ecosystem remains intact, and timelines are still on track. In plain terms, Reliance is saying: yes, the route may have changed, but the destination has not.

The bigger implication goes beyond one company. China’s tightening grip on battery technology is forcing Indian firms to rethink how they build critical supply chains. What used to be a straightforward licensing play is now a strategic challenge. For India’s energy transition, this means slower shortcuts but potentially stronger domestic capabilities over time.

Reliance’s stance signals confidence, but also a reality check. The race for clean energy is as much about geopolitics as it is about factories and gigawatts.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🤖 Grok, NSFW, and the AI Safety Trap - The Grok controversy highlights a growing tension in AI. Allowing NSFW content can drive rapid user growth, but it also opens the door to serious risks around consent, privacy, and safety. Grok drew attention by permitting sexually explicit content, helping it stand out in a crowded chatbot market and boost downloads and revenue. But the backlash shows the downside of engagement-first design. Other AI platforms have faced similar issues, even when rules exist on paper. The deeper problem is technical as much as ethical. AI models are trained to please users, and without strong age checks and safeguards, they can easily cross dangerous lines. The debate now is whether regulation can catch up before incentives push too far.

📈 Local Growth Engine - Vikas Bali, CEO of Intellecap, argues that India’s next growth phase will be driven by entrepreneurs from tier II and III cities solving local problems, not by imported Silicon Valley models. Speaking at the Sankalp Bharat Summit in Lucknow, he stressed the need for home-grown solutions in areas like agriculture, climate, waste management, healthcare, and livelihoods. Bali highlighted that grassroots businesses need patient capital and a shift in investor mindset, as they scale steadily rather than rapidly. He also pointed to India’s large market, strong entrepreneurial ambition, and growing focus on climate action, circularity, and women-led enterprises as key strengths shaping a more inclusive and resilient economy.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• India’s direct tax collections rise nearly 9% year-on-year, crossing ₹18 trillion as gross collections also climb — a sign of resilient revenue growth.

• Gold hits new record above $4,600/oz as investors pile into safe havens amid global financial uncertainty.

• Germany floats possibility of an EU-India trade deal by end of January, with leaders reaffirming strategic economic cooperation.

• The FIFA World Cup Trophy returns to India after 12 years, kicking off a three-day tour beginning in Delhi and energizing football fans nationwide.

• ICC confirms Bangladesh’s T20 World Cup matches will remain in India, classifying security risk as “low to moderate,” putting speculation to rest.