🧑‍🏭 India's Job Market

Good morning. Lohri, celebrated on January 13, marks the end of winter and the harvest of rabi crops, especially significant for Punjabi farmers. The festival involves lighting bonfires, offering prayers to the Sun and Fire gods, and symbolises fertility, prosperity, and the joy of longer days ahead.

Happy Lohri to those celebrating 🔥 ☀️ 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🧑‍🏭 India's Job Market

• 🤖 AI investing in India

• 🗞️ Bite-sized summaries

  • 🧑‍🎓 International Student Expenses

  • 🎵 Elon doesn’t want the TikTok ban

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Stock market closed lower for the third consecutive day, with the Nifty dropping below 23,450. The Sensex fell by 241.30 points, reflecting widespread sectoral declines, particularly in power and realty. The IT sector was a notable exception, showing gains. Market sentiment remained cautious ahead of upcoming economic data impacting interest rate outlooks.

🌍️ International

• Stocks declined sharply, following a robust jobs report that complicated the Federal Reserve's rate-cutting plans. Rising bond yields added to investor concerns about prolonged higher interest rates impacting economic growth.

EMPLOYMENT

🧑‍🏭 India's Job Market

India's job market is projected to experience a 9% growth in 2025, primarily driven by sectors such as Information Technology (IT), retail, telecom, & banking and financial services, and insurance (BFSI).

This growth is indicative of a broader trend where emerging technologies and evolving business needs are reshaping hiring practices across the country

Key Drivers of Job Growth

1. Sectoral Contributions:

   • The IT sector is expected to lead the charge, with significant job creation in areas related to emerging technologies such as artificial intelligence, big data, and cybersecurity.

   • The BFSI sector is also anticipated to increase its intake of tech professionals, reflecting a growing integration of technology in financial services.

2. Geographical Trends:

   • Cities like Bengaluru and Coimbatore are emerging as major hiring hotspots, showcasing regional disparities in job growth

   • Other cities, including Jaipur, are also becoming significant players in the job market, indicating a shift in employment opportunities beyond traditional metropolitan areas.

Implications for India

• Economic Growth: The projected job growth is a positive indicator of India's economy, suggesting a robust recovery and expansion in the workforce. This is crucial as the country aims to address global labour shortages with its young and growing population

• Skill Development: As new technologies emerge, skilled professionals will be increasingly needed. This necessitates a focus on education and training programs to equip the workforce with relevant skills.

• Employment Landscape: The overall employment landscape is transforming, with a decrease in unemployment rates and an expansion of the workforce. This shift is supported by government initiatives aimed at job creation and economic stability

• Future Outlook: Looking ahead, the job market is expected to continue evolving, influenced by factors such as digital access, geopolitical dynamics, and climate change initiatives. These elements will shape the types of jobs available and the skills required in the coming years

Overall: The projected growth of India's job market in 2025 signifies a promising outlook for employment opportunities, driven by technological advancements and sectoral expansions. This growth reflects economic resilience and highlights the importance of adapting to new job requirements and fostering a skilled workforce.

Read more: Economic Times

LENDING

🤖 AI investing in India

AI is becoming a dominant force in India’s tech landscape, drawing billions in venture capital investments. With AI's use cases expanding beyond traditional enterprise solutions into consumer-focused applications, investors are enthusiastic about its potential to revolutionise multiple sectors.

1. Expanding Applications

   • Startups in India are building AI-driven solutions across content creation, gaming, astrology, health, and more.

   • These ventures offer hyper-personalised experiences in regional languages, making AI solutions more accessible to diverse user bases.

   • Naman Lahoty, a partner at Stellaris Venture Partners, highlighted a growing trend of AI-first businesses targeting consumers. “We are seeing an encouraging wave of AI startups across various consumer tech sectors,” he said.

2. Investor Commitment

   • Global venture firms such as Lightspeed, which invested over $2 billion in AI ventures worldwide last year, plan to maintain their momentum in 2025.

   • Startups like Krutrim AI and Sarvam AI are leading India’s AI wave, with Krutrim AI already valued at $1 billion.

   • Despite India having only a few thousand pure-play AI startups, experts believe the ecosystem will rapidly evolve, supported by India's strong technical talent pool. Anil Joshi of Unicorn India Ventures remarked that 40% of their portfolio companies are AI-driven.

3. Future Prospects

   • AI remains in its innovation phase, and firms demonstrating strong product-market fit are expected to attract significant growth capital.

   • Gaurav Kothari from Prosus emphasised that well-performing AI startups will dominate funding conversations.

Overall: As Sandeep Murthy of Lightbox India Advisors put it, AI will likely be central to investment strategies for enterprise tech and SaaS models. India’s AI-driven innovation promises to transform the business landscape, making 2025 a pivotal year for the sector’s growth.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🧑‍🎓 International Student Expenses - Indian students are increasingly rethinking their study-abroad plans due to rising tuition costs and a weakening rupee. Many now depend on loans, with average loan sizes climbing from ₹28.8 lakhs in FY22 to ₹33.1 lakhs in FY24. Experts urge students to prioritize courses with strong job prospects to ensure a return on investment (ROI) and avoid the "prestige trap" of expensive yet less market-relevant degrees. Financial institutions are leveraging AI to mitigate risks, while students increasingly choose affordable universities with better employment outcomes over prestige rankings, signaling a shift toward more financially informed education decisions.

🎵 Elon doesn’t want the TikTok ban - As a potential US ban on TikTok approaches due to concerns over its ties to China's ByteDance, speculation grows about Elon Musk’s possible intervention. Known for his free speech advocacy, Musk opposes the ban and has sparked debates about purchasing the platform to keep it operational. While TikTok executives hope for a resolution, Musk's influence in tech and politics positions him uniquely in the matter. Amid discussions involving tech moguls like Mark Zuckerberg and political figures including Trump, TikTok's future hangs in the balance as netizens wonder whether Musk will make a bold acquisition move.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Microfinance sector contracts below Rs 4 lakh crore amid loan disbursal woes.

• Air India to offer first class seats in A350-1000 planes.

• India's energy security will fuel bid to become $4 trillion economy much earlier.

• Adani Group to invest Rs 75,000 cr in Chhattisgarh, says CM Vishnu Deo Sai after meeting Gautam Adani.

• Bank of Baroda to provide AI-driven support, forex facility, ATMs, and coin vending machines for Maha Kumbh 2025.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Sky Force song Kya Meri Yaad featuring Akshay Kumar, Sara Ali Khan and Veer Pahariya out now.

• Box Office: ‘Den of Thieves 2’ opens to winning $15.5M; ‘Moana 2’ nears $1B globally.