🗣️ Kruti bot

Good morning. If you've had trouble keeping up with the U.S.-China tariff tug-of-war, here's the key takeaway from yesterday:

The U.S. stock market surged by $3.5 trillion after Trump announced a 90-day pause on new tariffs. His baseline tariff of 10% on all imports remains in place. However, for China - tariffs on Chinese goods were hiked to 125%, effective immediately 🕹️ 

Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🗣️ Kruti

• 💴 China hits back with new trade restrictions

• 🗞️ Bite-sized summaries

  • 📉 Repo rate cut

  • 🇪🇺 EU fires back at Trump

  • ⏲️ 90-day pause

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian markets ended in the red despite a rate cut by the RBI. Weakness in IT and PSU bank stocks weighed on indices, while FMCG stocks provided some support.

🌍️ International

• US markets skyrocketed after President Trump announced a 90-day suspension of most reciprocal tariffs. The S&P 500 surged 9.52% to 5,456.90, marking its largest single-day gain since 2008. This historic rally was fueled by investor relief over reduced trade tensions.

CHATBOT

🗣️ Kruti bot

Indian entrepreneur Bhavish Aggarwal, founder of AI startup Krutrim, has unveiled a sneak peek into the company’s upcoming AI chatbot, ‘Kruti’, set to launch later this month. Designed to rival global giants like ChatGPT, Claude, and Gemini, Kruti is tailored for the Indian context—making it a significant move in the country’s growing tech ecosystem.

What Makes Kruti Stand Out?

Kruti appears to feature three interaction modes:

• Instant for quick responses

• Insightful for reasoned answers

• In-depth for deeper research tasks

Early demos also show advanced capabilities, such as booking a cab and generating Ghibli-style art—mirroring features popular in leading global chatbots.

But Krutrim isn’t just about one chatbot. Aggarwal announced a ₹2,000 crore investment, with plans to scale it to ₹10,000 crore by next year. The company has also launched Krutrim AI Lab to drive cutting-edge AI innovation from India for the world.

Krutrim recently became one of the first to host Meta’s new Llama 4 models on its India-based cloud, ensuring data sovereignty—a major concern in global tech. It has also deployed China's DeepSeek foundation models on powerful Nvidia H100 GPUs, all within India.

Why’s this important? India currently relies heavily on foreign AI platforms. Kruti represents a homegrown alternative, built with Indian languages, users, and data in mind. It could empower businesses, startups, and developers with local, cost-effective AI tools while protecting user data on Indian servers.

If successful, Kruti may not just match global platforms—it could redefine India’s AI independence.

Read more: Economic Times

TARIFFS

💴 China hits back with new trade restrictions

In a sharp retaliation to former U.S. President Donald Trump’s fresh 50% tariff hike on Chinese imports, China has imposed restrictions on 18 American companies, escalating global trade tensions.

China's commerce ministry added:

• 12 U.S. firms to a control list, banning exports of dual-use goods (which can be used for both civilian and military purposes)

• 6 firms to its “unreliable entities” list, restricting their China-related operations due to military ties with Taiwan

Beijing also announced a 50% tariff hike on U.S. goods, adding to the previously announced 34%, taking total duties to a massive 84%.

Who's affected?

The sanctions primarily target U.S. defense contractors such as Shield AI and Sierra Nevada Corporation, which are involved in drone tech and military aircraft. While these firms have limited direct business in China, the move could disrupt global supply chains, especially for specialized components like batteries.

Why does this matters to India?

This rising U.S.-China economic cold war can reshape global trade flows—and India is likely to feel both the pressure and opportunity:

• Supply Chain Disruptions: Indian manufacturers reliant on Chinese or U.S. components might face delays or cost hikes.

• Export Opportunity: As U.S.-China tensions escalate, India could attract companies seeking neutral ground for manufacturing and tech partnerships.

• Geopolitical Balancing Act: India will need to carefully manage its diplomatic stance as both the U.S. and China are key trade partners.

China’s reassurances to “law-abiding” foreign firms signal a desire to keep broader investor confidence intact, but the message is clear: the tariff war is real—and growing.

Overall: The trade clash between the world’s two largest economies could have ripple effects far beyond their borders. For India, it’s a warning and an opening—to de-risk global exposure and assert itself as a stable alternative in the shifting trade landscape.

Read more: Economic Times

2GENERAL OVERVIEW

🗞️ Bite-sized summaries

📉 Repo rate cut - Finance Minister Nirmala Sitharaman welcomed the RBI’s 25 basis point repo rate cut, calling it a positive step to support growth amid global trade uncertainties caused by US tariff hikes. Speaking after the India-UK Economic and Financial Dialogue, she said the economy needs support from both the RBI and the government. She highlighted India’s strong domestic demand and growing middle class as key growth drivers. The RBI’s rate cut aims to boost the economy, which is under pressure from global factors. Sitharaman also said India is studying the US tariffs and continuing trade talks for a beneficial agreement.

🇪🇺 EU fires back at Trump - On April 9, the European Union launched its first major countermeasures in response to U.S. President Donald Trump's tariffs, targeting over €20 billion worth of American goods like soybeans, motorcycles, and beauty products. These new EU tariffs, a reply to earlier U.S. duties on steel and aluminum, will roll out in three phases starting April 15. The EU has held off on responding to Trump’s latest tariffs for now. The escalating trade conflict, also involving China and Canada, risks a global trade war. Trump has also threatened higher tariffs on EU wines, while China vows to fight back strongly.

⏲️ 90-day pause - President Donald Trump announced a 90-day pause on new tariffs for over 75 countries that haven’t retaliated against the U.S. These countries will face a reduced “reciprocal” tariff of 10% during this period. However, Trump sharply increased tariffs on China to 125%, effective immediately, accusing it of disrespecting global markets. The pause is aimed at encouraging negotiation on trade issues like tariffs, currency manipulation, and trade barriers. Trump’s move comes amid rising global tensions and as China continues to fight back with its own tariffs. The situation signals further escalation in the U.S.-China trade war.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Apple's formula can mean a bumper crop: Is India ready?

• Radisson Hotel Group inks 5 new properties; crosses 200 hotels mark in South Asia.

• Kolkata set to get India's largest EV charging hub, second only to China.

• Tata Steel to cut around 20% of Dutch workforce.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Raid 2 trailer, starring the Iconic cast Ajay Devgn, Riteish Deshmukh, Vaani Kapoor amongst others, out now!

• IPL 2025: GT beat RR by 58 runs. Leaderboard here.