📈 Higher earnings, faster deliveries

Good morning. Last week Jaguar rebranded.

As part of the rebrand they dropped a new ad which looked a lot like something Adobe would produce to showcase colourful, fashionable imagery. There was a sneak peak of a wooden car somewhere, if you looked closely enough.

Fortunately for Volvo, they also dropped an ad around the same time that was well done on its own but, in comparison to Jaguar's, was significantly better. For one, it featured an actual car.

Jaguar claims there is more to come, and we should “trust and reserve judgment”.

Here’s hoping the next ad includes some of the actual products it sells 🚗 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 📈 Higher earnings, faster deliveries

• 🧠 Should India build its own Large Language Models?

• 🗞️ Bite-sized summaries

  • 🚃 Railway projects

  • 🚗 Export plans

  • 🤝 Carbon trading

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian stock markets surged. The rally was fueled by BJP's victory in Maharashtra and gains in blue-chip stocks. Larsen & Toubro, SBI, and Adani Ports were top gainers. The rupee appreciated against the US dollar, closing at 84.31. Also FYI - Zomato will replace JSW Steel in the Sensex from 23rd Dec.

🌍️ International

• Wall Street's main indexes rose, with the Dow Jones and S&P 500 hitting record highs. Investors reacted positively to Scott Bessent's nomination as Treasury Secretary by President-elect Trump. Bessent is viewed as a stabilising force who could restrain government borrowing while supporting Trump's fiscal policies.

QUICK COMMERCE

📈 Higher earnings, faster deliveries

The quick commerce sector is not only transforming consumer buying behaviour but is also providing better earnings for gig workers compared to food delivery.

Here’s what we know:

• According to a Morgan Stanley report, delivery partners in quick commerce earn an average net income of ₹21,402 per month—14 % higher than the ₹18,595 earned by food delivery executives.

• The efficiency of quick commerce stems from shorter delivery distances (2–3 km vs. 5–7 km for food delivery) and faster turnaround times (10–15 minutes compared to 30–40 minutes).

• This allows quick commerce delivery partners to complete 30% more orders—533 per month on average—than their food delivery counterparts. The streamlined "one-to-many" delivery model and lower fuel costs also contribute to higher earnings.

The Indian quick commerce market, projected to reach $42–55 billion by 2030, is witnessing fierce competition among players like Blinkit, Swiggy Instamart, and Zepto, and new entrants such as Flipkart and Amazon.

Companies are rapidly expanding their dark store networks to enhance operational efficiency. Blinkit added 152 dark stores in Q2, reaching 791 by September, while Swiggy Instamart and Zepto are aggressively scaling to match.

Despite its rapid growth, quick commerce faces criticism for potentially impacting traditional Kirana stores. Platforms deny these claims, but reports suggest that over $1 billion of kirana sales could shift to quick commerce in 2024.

Overall: Quick commerce represents a pivotal shift in India’s retail ecosystem, benefiting gig workers while challenging traditional supply chains. As the sector scales further, its impact on consumer behaviour, local businesses, and competition dynamics will be closely watched.

Read more: Economic Times

ARTIFICIAL INTELLIGENCE

🧠 Should India build its own Large Language Models?

A lively debate has emerged over whether India should focus on developing its own foundational AI models or prioritize applied use cases.

At the Bengaluru Tech Summit, Google Research India head Manish Gupta challenged Infosys chairman Nandan Nilekani’s view that India should avoid building large language models (LLMs).

Meanwhile, Nilekani, speaking earlier at Meta’s Build with AI summit, argued that India should leverage existing LLMs from global tech giants while focusing on use cases like synthetic data and smaller, targeted models. Infosys founder NR Narayana Murthy shared his stance, highlighting India’s lack of large datasets as a barrier to creating meaningful LLMs.

However, Gupta respectfully disagreed, emphasizing the need for India to invest in foundational AI innovation. He pointed to Aadhaar, led by Nilekani, as a transformative example of building foundational systems first. “India’s constraints should drive innovation, not limit it,” Gupta said, advocating for foundational research to ensure India doesn’t merely consume but creates cutting-edge AI technologies.

Gupta also highlighted India’s significant contributions to global AI advancements. For instance, the Google India team developed innovations like Matryoshka representation learning, optimizing AI efficiency, and Performer, which reduces the computational costs of processing long AI contexts. These breakthroughs are already being used in Google products and influencing global AI models, including those by OpenAI.

Overall: India’s startup ecosystem is also entering the LLM race, with players like Sarvam AI, Krutrim, and Haptik exploring innovative applications.

While Nilekani’s approach aims to position India as a global hub for AI use cases, Gupta argues for a balanced strategy that includes foundational AI research. The debate reflects broader questions about India’s role in the global AI landscape: should it focus on being a powerhouse of applied AI or aim for leadership in foundational innovations?

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🚃 Railway projects - The Cabinet has approved ₹7,927 Cr. for three multitracking railway projects to improve connectivity, reduce logistics costs, and lower CO2 emissions. Key expansions include the ₹2,773 Cr. Manmad-Jalgaon fourth line and additional lines on the Bhusawal-Khandwa and Prayagraj-Manikpur routes. These projects span Maharashtra, Madhya Pradesh, and Uttar Pradesh, enhancing passenger travel, especially to religious and tourist sites like Varanasi, Nashik, and Khajuraho. Additionally, the upgrades will support 51 MTPA of freight traffic for commodities like coal and steel. With railways’ eco-friendly benefits, the projects are expected to cut CO₂ emissions by 271 Cr. kg, equivalent to planting 11 Cr. trees.

🚗 Export plans - Maruti Suzuki India aims to expand vehicle exports to 7.5 lakh units annually by 2030-31, leveraging the ‘Make in India’ initiative and diversifying its global markets. With 30 lakh cumulative exports since 1986, the company recently shipped its 3 millionth vehicle, including models like Baleno and Jimny. Exports grew 17% year-on-year, reaching 1.81 lakh units in April-October 2024. Currently exporting to nearly 100 countries, Maruti plans to capitalize on supportive government policies and strong global demand. Its environmentally conscious localization strategy and robust exports solidify its leadership, contributing 40% of India’s passenger vehicle exports.

🤝 Carbon trading - At COP29, UN members approved rules for carbon trading between nations, enabling wealthy countries to buy carbon credits from developing nations to meet emission targets. This framework, part of Article 6 from the Paris Agreement, includes direct country-to-country trading and a UN-backed marketplace. While supporters see it as a way to fund clean energy projects in developing nations, critics warn of greenwashing risks and weak regulation. Only one international trade has occurred so far, with 90 deals in development. Experts stress the need for transparency to avoid undermining global climate goals and creating ineffective or exploitative markets.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• TikTok CEO seeks Musk’s counsel on incoming Trump administration.

• Microfinance sector tightens lending norms to address asset quality stress.

• Europe is already facing its next energy crisis.

• How technology is streamlining B2B payment landscape in India.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• IPL updates:

  • 13-year-old Vaibhav Suryavanshi picked up by Rajasthan Royals for 1.1 Cr.

  • Rishabh Pant becomes the most expensive IPL player after he goes to LSG for Rs 27 Cr.

• Italy via Jannik Sinner triumphs over Australia to secure their spot in the Davis Cup.

• West Ham beat Newcastle, 2-0, for the first time in the Premier League since 15 August, 2021 - ending a run of five games without a win.