👮 International interest

Good morning. Happy International Friendship Day and Cheesecake Day.

We recommend killing two birds with one stone and getting some cheesecake with friends on this very fine Tuesday 🍰🌟

- Ruchirr Sharma & Shatakshi Sharmaa

TABLE OF CONTENTS

• 👮 International interest

• 🏭️ Global manufacturing hub

• 🗞️ Bite-sized summaries

  • 🗺️ This is my map

  • 🦄 India’s newest unicorn

  • 🤝 PwC x Microsoft

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian stock markets opened at record highs but lost momentum, closing flat. Sensex and Nifty hit new peaks before settling with minimal gains. Mid-cap stocks outperformed, with the Nifty MidCap 100 reaching a record high. PSU Bank, Media, and Realty indices led gains, while FMCG, IT, and some financial services declined.

🌍️ International

• U.S. stock indexes closed mixed ahead of a week filled with earnings reports from influential companies and a Federal Reserve meeting. The S&P 500 and Nasdaq composite both rose ~0.1%, while the Dow Jones Industrial Average slipped ~0.1%. Microsoft, Apple, Amazon, and Meta Platforms are set to report later in the week, and the Federal Reserve may hint at a rate cut in September.

CRYPTOCURRENCY

👮 International interest

WazirX, an Indian cryptocurrency exchange, recently suffered the country's largest cyberattack, losing over $230M —nearly half its reserves. 

Despite the Indian authorities working hand in glove with the crypto exchange, another international agency has come into play - the US Federal Bureau of Investigation (FBI) 

The FBI is now involved in investigating the possibility that North Korean hackers, specifically the Lazarus group, are behind the attack.

WazirX CEO Nischal Shetty described the attack as highly sophisticated and unprecedented, attributing it to a state actor rather than individual hackers. He emphasised the exchange's adherence to industry best practices, highlighting the potential vulnerability of even the most secure platforms.

In response to the breach, WazirX implemented a "socialised loss strategy," ensuring most investors would receive 55% of their holdings back, with those holding INR funds eligible for full recovery. Despite criticism for allowing trading to continue for three days post-attack, Shetty defended the decision, citing the need to prevent mass liquidation.

What’s next? 

• An independent forensic audit is underway to determine the attack's specifics and any possible lapses by WazirX or its digital asset custody provider, Liminal. 

• The company is also exploring the possibility of fund recovery, acknowledging that while challenging, recent advancements have led to the successful retrieval of stolen assets.

Shetty stressed the importance of transparency and honesty with stakeholders, acknowledging the uncertainty surrounding the recovery process but remaining cautiously optimistic about the outcome.

Read more: Economic Times

ECONOMY

🏭️ Global manufacturing hub

A recent report by global financial services firm Lazard has shed light on India's rapid economic growth and its active steps towards becoming a global manufacturing centre. 

The "Outlook on Emerging Markets" report emphasises India's strong demographic dividend, with a growing labour force and rising middle class driving the country's economic expansion.

Key points from the report include:

1. Demographic Advantage: Nearly 80% of India's population is under 50, providing a significant workforce to fuel growth until the 2060s.

2. Economic Reforms: Prime Minister Modi's governments have stabilised India's macroeconomy, integrated millions into the digital economy, and implemented crucial tax reforms.

3. Future Vision: Modi's pledge to transform India into a developed country by 2047 remains a central focus for his third term.

4. Challenges Ahead: Despite progress, India faces significant hurdles in the education and agriculture sectors.

The Indian government's commitment to strengthening the manufacturing sector is evident in the Union Budget 2024-25, which includes:

• Extension of Mudra loan limits from ₹10 lakh to ₹20 lakh

• Financial support for 50 multi-product food irradiation units in the MSME sector

• Initiatives to provide employment and skilling services to labour

The bigger picture

Why do so many countries, including India, want to become manufacturing hubs? 

India's push aligns with global trends driven by economic, geopolitical, and technological factors:

1. Economic Growth and Job Creation: Manufacturing boosts GDP and creates employment across skill levels.

2. Supply Chain Diversification: Countries aim to reduce dependency on single markets, particularly China.

3. Competitive Labour Costs: India's lower wages attract foreign investment seeking cost-effective production.

4. Technological Advancements: Programmes like "Skill India" aim to develop a workforce capable of supporting advanced manufacturing.

5. Favourable Business Environment: Stable politics and supportive trade policies attract manufacturing investments.

6. Government Incentives: Production-linked schemes, subsidies, and tax breaks encourage domestic and foreign investment.

As India positions itself as an alternative to China, leveraging these factors will be crucial in establishing its role as a key player in the global manufacturing landscape.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🗺️ This is my map - MapMyIndia is suing Ola Electric for allegedly copying its proprietary data to create Ola Maps. CE Info Systems, MapMyIndia's parent company, claims Ola breached their license agreement by reverse engineering and co-mingling the licensed product. Ola denies these allegations, stating they developed Ola Maps using open-source data and their fleet's real-time information. The dispute has sparked a pricing war, with Google slashing its Maps API prices by 70% and Ola offering further discounts. This legal battle highlights the growing competition in India's digital mapping sector and the value of proprietary mapping data in the technology industry.

🦄 India’s newest unicorn - Ride-hailing platform Rapido has achieved unicorn status after raising $120M from WestBridge Capital, valuing the company at $1B. This makes Rapido the third Indian unicorn of 2024, following Perfios and Krutrim AI. The Bengaluru-based bike taxi company may secure an additional $20M from global investors. Rapido has expanded its services to include auto-rickshaws and cabs, competing with rivals like Ola and Uber. Founded in 2015, Rapido has now raised a total of $329M in funding. The company's success highlights the potential for growth in India's ride-hailing sector, despite recent funding challenges in the startup ecosystem.

🤝 PwC x Microsoft - PwC India and Microsoft India have partnered to enhance cybersecurity using Microsoft Copilot for Security, an AI-powered solution. This collaboration aims to strengthen incident response and recovery capabilities, addressing the growing sophistication of cyber threats. By combining PwC's expertise with Microsoft's technology, the alliance offers comprehensive protection for enterprises. The partnership enables faster threat eviction, secure system rebuilding, and improved threat intelligence, empowering organisations to predict, prevent, and respond to security threats confidently, tackling the increasingly complex cybersecurity landscape at the speed and scale of AI.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Maldives President thanks India for debt relief, hopes for free trade deal.

• Indian Embassy in Lebanon issues travel advisory for Indians.

• McDonald’s earnings, revenue miss estimates as consumer pullback worsens.

• Rahul Gandhi, Rajnath Singh face off in Lok Sabha over Agnipath Scheme.

• Infosys shares gain 20% in July, largest monthly gain in 4 years.

• US National Debt hits $35 trillion.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Olympics updates:

  • Novak Djokovic beats Rafael Nadal 6-1, 6-4 in potentially their last head-to-head match - Novak reaches 3rd round.

  • Indian Men’s hockey drew 1-1 with Argentina.

  • Lakshya Sen beats Julien Carraggi in Men’s Badminton in the group stages.

  • Ashwini Ponnappa and Tanisha Crasto lost 11-21, 12-21 to Japan's Nami Matsuyama and Chiharu Shida, marking their second defeat in the group.

• Nikhil Kamath has an insightful conversation with Ranbir Kapoor on all things life.

• Varun Dhawan’s niece Anjini Dhawan set to make acting debut with Binny And Family on 30th Aug.