💰️ Middle-income trap

Good morning. The Paris Olympics ceremony wasn’t all le bien.

The main reason: a peculiar parody of Leonardo da Vinci’s “Last Supper” which included an artistic imitation, featuring drag queens and transgender models. Needless to say churchgoers were offended, and everyone else was just plain confused.

Better luck next time Paris 🥖 ⛪️ 

- Ruchirr Sharma & Shatakshi Sharmaa

TABLE OF CONTENTS

• 💰️ Middle-income trap

• 🤖 AI equaliser

• 🗞️ Bite-sized summaries

  • 🏘️ Apple’s new home

  • 🏗️ Construction acquisition

  • 🔝 Inflation increases in Karnataka

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian markets rebounded strongly. Sensex surged 1,293 points and Nifty hit a record high, ending a 5-day losing streak. Value buying, rallies in blue-chips like Reliance, and gains in IT, auto and metal sectors drove the recovery amid positive global cues.

🌍️ International

• Wall Street’s major indexes closed higher on Friday as investors returned to tech megacaps that had previously caused broad sell-offs. Inflation data also contributed to optimism that the Federal Reserve will soon cut interest rates. While the S&P 500 and Nasdaq Composite couldn’t fully recover from earlier losses, the Dow Jones Industrial Average ended the week positively.

ECONOMY

💰️ Middle-income trap

"India is merely 10 years behind the US. With AI and rapidly evolving tech, we can cover that distance in 5."

This is what every proud Indian says whenever comparisons to the West arise.

However, the reality painted by NITI Aayog presents a more sobering picture.

According to the think tank, India must sustain an ambitious growth rate of 7-10% for the next 20-30 years to simply escape the middle-income trap. This isn't just a random target, but a crucial milestone on the path to becoming a developed nation.

The vision is clear: elevate India to a $30T economy with a per capita income of $18,000 by 2047, marking its centenary of independence.

Why now?

• Prime Minister Narendra Modi emphasises skill development, research, innovation, and job-oriented knowledge as key drivers for achieving 'Viksit Bharat' (Developed India).

• India's youthful demographic - with nearly 50% under 25 years, forming 20% of the global young population - is seen as a vital asset.

Plus, the NITI Aayog's approach paper underscores the importance of harnessing this demographic dividend.

• As a global talent hub producing over 2 million STEM graduates annually and boasting the world's third-largest startup ecosystem, India has significant potential for growth.

• The vision extends to improving life expectancy to 84 years and stabilising the population at 1.65 billion by 2047.

• However, challenges remain. Enhancing manufacturing, logistics, and R&D capabilities, achieving energy security and sustainability, promoting balanced regional development, and bridging the rural-urban income gap is crucial for this transformation.

Overall: While the path to a developed India is ambitious, it requires sustained effort and strategic planning to overcome existing challenges and realise the vision of 'Viksit Bharat' by 2047.

Read more: Business Standard

ARTIFICIAL INTELLIGENCE

🤖 AI equaliser

In the history of time, there have been 2 major equalisers.

1. Hard work.

2. The internet (+ hard work, or smart work, however you look at it 😏)

But in November 2022, a 3rd equaliser was born - Artificial Intelligence. And trust me, even Denzel couldn’t do anything about it.

India is seeing this opportunity and is poised to become an AI-first nation by capitalising on its young population and technological thrust.

How?

• With one of the world’s youngest populations, India holds a unique human capital advantage to leverage artificial intelligence for substantial economic and societal benefits.

• As demand for AI skills outpaces supply, India can harness this demographic edge by equipping its workforce with essential AI capabilities.

• The “India AI Mission” and “Viksit Bharat 2047” underscore the need for public and private sector collaboration to democratise AI access.

• Empowering citizens with AI skills will be pivotal for fostering innovation, ensuring everyone can reap AI's benefits.

• A comprehensive approach to AI education includes grassroots skill-building, enhancing AI fluency within the government, and preparing organisations with a future-ready workforce.

Additionally, non-profits play a crucial role in driving AI fluency at the grassroots.

• For instance, SEEDS leverages AI to educate vulnerable populations about heat wave dangers, helping them devise innovative solutions.

• In agriculture, AI tools like Farmvibes AI and Agripilot.ai provide farmers with critical data, enhancing productivity and sustainability.

Furthermore, collaboration between industry and educational institutions can train students in AI, particularly in tier-2 and tier-3 cities, and increase women's representation in AI fields.

Strategic investments in human capital, from developing multilingual AI solutions to agricultural advancements, promise significant returns for India’s development.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🏘️ Apple’s new home - Apple is intensifying its manufacturing efforts in India, expanding beyond iPhones to potentially include iPads. The company's sales in India reached a record $8 billion, growing 33% in the past year. Apple aims to diversify from China, with plans to move at least half of its supply chain to India. Key suppliers like Foxconn are increasing operations in the country. Apple's ecosystem in India could employ around 500,000 people directly within three years. The company is also exploring assembling Pro and Pro Max iPhone models in India. This push is supported by India's Production Linked Incentive (PLI) scheme. While India represents only 2% of Apple's global sales, it's one of the fastest-growing markets for the tech giant.

🏗️ Construction acquisition - UltraTech Cement, India's largest cement producer, is set to acquire a 32.72% stake in India Cements for ₹3,954 Cr., paying ₹390 per share. This follows a previous 22.77% stake acquisition in June 2024. The deal will trigger a mandatory open offer, potentially increasing the total cost to ₹7,100 Cr. if fully subscribed. India Cements has a total grey cement production capacity of 14.45 MTPA, primarily in Tamil Nadu. The acquisition aims to enhance UltraTech's capacity and market presence in the Southern region, potentially optimizing its expansion plans. Subject to regulatory approvals, the deal is expected to conclude within six months, solidifying UltraTech's position as a leading player in the cement industry.

🔝 Inflation increases in Karnataka - Finance Minister Nirmala Sitharaman criticised Karnataka's Congress government for causing higher state inflation by increasing prices of essentials like fuel and milk. She noted that Karnataka's inflation (6.1%) exceeded the national average (5.4%) from June 2023 to June 2024. Sitharaman refuted Chief Minister Siddaramaiah's claims of discrimination, stating that central transfers to Karnataka have significantly increased under the NDA government compared to the UPA era. She provided figures showing substantial growth in tax devolution, grants-in-aid, and infrastructure projects for the state. Sitharaman emphasised that the current government has allocated more funds and implemented more development projects in Karnataka than previous administrations, dismissing the Congress party's allegations as misinformation.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Mexican drug lord 'El Mayo' was 'kidnapped' by 'El Chapo's' son and taken to US.

• Delhi coaching centre deaths: Owner, co-ordinator sent to 14-day judicial custody.

• Is India still playing catch-up with China and the US in quantum computing?

• Warner Bros. Discovery sues NBA to secure media rights awarded to Amazon.

• Trump proposes strategic national crypto stockpile: ‘Never sell your bitcoin.’

• US Election: Harris Campaign says it raised $200M as V.P. auditions pick up.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Olympics updates:

  • Manu Bhaker takes Bronze in Women's 10m Air Pistol.

  • Prannoy H.S. beats Fabian Roth in a group-stage Badminton game.

  • PV Sindhu beats F.N. Abdul Razzaq in a group-stage Badminton game.

  • Nikhat Zareen beats Maxi Kloetzer in a Bantamweight boxing match.

  • Preeti Pawar beats TKA Vo in a Bantamweight boxing match.

• Women's Asia Cup Final: Sri Lanka record their maiden Women's Asia Cup title win, beating India by 8 wickets

• ‘Deadpool and Wolverine’ snares $205M domestic opening, highest R-rated debut ever.

• Robert Downey Jr to return to Marvel as Doctor Doom.