💻️ India’s IT industry set to hit $300B

Good morning. We were scrolling through social media, as one does, and came across a comment from someone trying to say thank you.

It went like this: May your fields always be watered, you legend!

Petition to start using fun phrases to thank people because how fun 😁 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 💻️ India’s IT industry set to hit $300B

• 🇺🇸 How Trump's tariffs could reshape Asia's trade landscape

• 🗞️ Bite-sized summaries

  • 💰️ Making India investor friendly

  • 🎐 Renewable projects

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• The Indian stock market experienced a significant downturn. This decline was attributed to mixed global sentiment, concerns over Donald Trump's tariff plans, reports of a new bat coronavirus in China, and fresh Russia-Ukraine tensions. Most sectors traded negatively, with media, metal, and telecom stocks facing selling pressure1.

🌍️ International

• The US stock market showed mixed results on Monday. Tech stocks were weak, led by Palantir. The mixed performance was influenced by ongoing inflation concerns, uncertainty about the Federal Reserve's next moves, geopolitical tensions in Eastern Europe, upcoming earnings reports from major retailers, fluctuating oil prices, and renewed debates over fiscal policy.

ECONOMICS

💻️ India’s IT industry set to hit $300B

India’s technology sector is on track to reach $300 billion in revenue by FY26, according to Nasscom’s latest annual strategic review. The industry grew by 5.1% in FY25, adding $13.8 billion to hit $282.6 billion, with IT services leading at $137.1 billion and Engineering R&D (ER&D) at $55.6 billion.

Here are some interesting trends:

• The sector now employs 5.8 million professionals, with 126,000 new jobs added in FY25. However, uncertainty looms due to potential tariff changes in the US, which contributes 60-62% of India’s tech revenue.

• To mitigate this risk, Nasscom is pushing for global expansion, targeting markets like the UK, UAE, Germany, and the Asia-Pacific region.

• Agentic AI presents both opportunities and challenges. While AI and automation drive revenue, they may impact headcount.

• Over 500 Global Capability Centers (GCCs) in India now have AI capabilities, compared to 210 in 2023.

• AI adoption is steadily growing, with 63% of tech spend in AI expected to exceed 10% of overall budgets. More than 73,000 professionals have received advanced AI certifications.

Key Industry Segments & Market Expansion

• BPM: $54.6 billion revenue (+4.7%)

• Software Products: $16.1 billion revenue (+5.9%)

• Hardware: $19.2 billion revenue (+5.8%)

• Domestic Market: Grew by 7% to $58.2 billion

• Exports: Increased by 4.6% to $224.4 billion

Overall: Despite headwinds like slow discretionary spending recovery, 77% of CEOs foresee business growth in FY26, with 40% expecting increased tech spending. Digital engineering is expanding across BFSI, healthcare, and retail, while the industry has filed over 90,000 patents, with emerging tech leading innovation.

India’s IT sector continues to evolve, balancing global challenges with technological advancements, AI adoption, and strategic expansion to sustain its growth trajectory.

Read more: Economic Times

TARIFFS

🇺🇸 How Trump's tariffs could reshape Asia's trade landscape

President Donald Trump's aggressive tariff strategy is sending shockwaves through Asia, threatening to upend long-standing trade dynamics and potentially diminishing the United States' influence in the region. With a 10% tariff on Chinese imports already in place and plans for broader 25% tariffs on key industries like automobiles, semiconductors, and pharmaceuticals, Asia stands at a critical juncture.

Asian Impact:

• Asia is home to seven of the largest trade surplus nations with the U.S., making it a prime target for Trump's policies.

• Countries like Japan, South Korea, Taiwan, and India—major exporters of goods such as cars, chips, and pharmaceuticals—are bracing for economic turbulence.

• Many Asian nations, particularly Vietnam, have also become top destinations for Chinese exports, further fueling Trump’s accusations of unfair trade practices.

The tariff hikes could force companies to rethink supply chains, accelerating the shift away from China and toward other manufacturing hubs like Vietnam, Thailand, and Malaysia. However, experts warn of a potential domino effect: if more countries retaliate with protectionist policies, the global trade landscape could become increasingly fragmented.

Who wins and who loses?

While some Southeast Asian nations may benefit from an influx of Chinese investment, the long-term risks are significant. Chinese manufacturers, eager to circumvent tariffs, are setting up factories in neighboring countries, potentially dominating local industries and triggering new trade tensions with the U.S.

Meanwhile, countries like India and Vietnam are making strategic moves to soften the blow. India has cut tariffs on American goods, while Vietnam is exploring increased imports of U.S. agricultural products to maintain favor with Washington.

Overall: The uncertainty surrounding Trump's tariff strategy has markets on edge. If the U.S. continues its protectionist stance, Asian nations might forge stronger regional trade alliances, reducing their dependence on American markets. This shift could mark the beginning of a more self-sufficient Asia, reshaping global trade for years to come.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

💰️ Making India investor friendly - Prime Minister Narendra Modi advocated for a deregulation commission to create an investment-friendly environment, discussing it with states. Speaking at the Global Investors Summit, he highlighted India's economic optimism and unveiled 18 new policies to attract investment in Madhya Pradesh. Modi emphasised India’s rapid growth, backed by the World Bank’s confidence. He also noted MP’s rising status in industries, agriculture, and electric vehicles, crediting the "double engine" government for accelerated development. Simplified customs duties and regulatory reforms were also announced to boost business confidence and ease investment.

🎐 Renewable projects - State-owned Solar Energy Corporation of India (SECI) will invest ₹2,500 crore in renewable energy projects in Madhya Pradesh. At the Global Investors Summit 2025 in Bhopal, SECI signed an MoU with the state government to establish a 200 MW solar project in Dhar and a 1,000 MWh battery storage project. The solar initiative is part of a 500 MW agreement with MP Power Management Company Ltd for 25 years. This phased investment aims to boost renewable energy capacity in the state, reinforcing Madhya Pradesh’s commitment to sustainable energy expansion and infrastructure development.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• India to host 12th Regional 3R and Circular Economy Forum in Asia and the Pacific.

• Charting the global economy: Inflation picks up in Japan, UK.

• Indian refiners cancel palm oil orders due to price surge.

• New cases of breast cancer could be up 38% by 2050 globally; related deaths by 68%.

• Enhancing deep-sea fishing capacity to increase seafood exports to Rs 1 lakh crore.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Chhaava box office collection day 11: Vicky Kaushal's film crosses Rs 300 Cr. mark.

• ICC Champions Trophy: Semifinal spots for both New Zealand and India confirmed whilst hosts Pakistan and Bangladesh eliminated from the tournament.