🇺🇸 Trump's tariff threats

Good morning. Today is our cousin’s wedding, marking the third wedding we will be attending this month 🤵 👰 

Fun fact: India is expected to see around 4.8 million weddings across the country during the peak wedding season from November 2024 to February 2025.

And yes, this number is up from the 3.8 million weddings that took place in India last year. The increase is attributed to a rise in auspicious wedding dates, with 18 dates available this year compared to 11 last year, which has encouraged more families to plan celebrations during this peak season.

All that is to say, we love a good wedding and make great wedding guests so please send us your invites 🫰 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🇺🇸 Trump's tariff threats

• 🚚 Logistics facility investment

• 🗞️ Bite-sized summaries

  • 💰️ Booming revenue

  • 🇺🇸 Trump not a fan of India Tesla factories

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian stock markets closed marginally lower after a volatile session. Banking stocks led gains, while IT stocks dragged the market lower.

🌍️ International

• U.S. stock markets saw modest gains. The S&P 500 rose 0.2% to a new record of 6,144.15. Tesla boosted the market, offsetting Celanese's decline. Treasury yields dipped slightly.

INVESTMENT

🚚 Logistics facility investment

CCI Group is investing Rs 640 crore to develop a 2 million square feet logistics facility in Polivakkam, Chennai, as part of a larger 3 million square feet project. This expansion aims to meet the growing demand for efficient warehousing driven by e-commerce.

High level:

• Investment: Rs 640 crore

• Facility Size: 2 million sq. ft. (Phase 2), total of 3 million sq. ft.

• Location: Polivakkam, Chennai

• Completion: Expected by mid-2025

• Funding: Promoter equity and construction finance

Development Phases:

• The first phase (1 million sq. ft.) is already complete, and the second phase will add 2 million sq. ft.

• The total space will cater to e-commerce, automotive, FMCG, and manufacturing sectors.

Strategic Importance:

• E-commerce Demand: The facility will support the e-commerce sector’s rapid growth, providing much-needed warehousing space.

• Chennai as Logistics Hub: This project strengthens Chennai’s position as a key logistics center, attracting industries looking for efficient storage.

• Economic Growth: The project will generate jobs and promote regional economic development.

Overall: This Rs 640 crore investment by CCI Group is a timely move to enhance India’s logistics infrastructure. Set to be completed in 2025, it will serve a range of industries and contribute to regional economic growth.

Read more: Economic Times

TARIFFS

🇺🇸 Trump's tariff threats

Donald Trump is again raising the spectre of reciprocal tariffs, hinting at 25% duties on automobiles, pharmaceuticals, and semiconductors, potentially impacting India, although perhaps less severely than other nations. During a recent interview, Trump reiterated his stance that countries should charge the same tariffs as the US, a policy he calls "reciprocal."

While the timing of these tariffs is unclear, the implications for India are being closely watched. The US is India's largest trade partner, with bilateral trade totaling $120 billion in FY24, with India holding a $35.3 billion surplus. Trump has previously criticised India as a "tariff king," revoking preferential market access in 2019.

S&P Global suggests India may be less vulnerable due to its domestically driven economy and substantial services exports, which are unlikely to be targeted. However, Goldman Sachs estimates a potential 0.1-0.3 percentage point impact on India's GDP growth if the tariffs are imposed. The pharmaceutical industry, which sends over 30% of its exports to the US, is adopting a "wait and watch" approach, anticipating that tariffs would primarily hurt American consumers.

Despite the tariff threats, India and the US aim to negotiate the first part of a Bilateral Trade Agreement (BTA) by the fall, focusing on increased market access, reduced trade barriers, and deeper supply chain integration. While both countries seem willing to address trade divergences, S&P Global anticipates limited tariff concessions and gradual regulatory easing.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

💰️ Booming revenue - Dixon Technologies India, assembler of Google’s Pixel smartphones, expects to more than double its revenue this fiscal year due to India’s booming electronics manufacturing sector. With global giants like Google and Apple shifting production from China, Dixon has expanded aggressively, benefiting from government incentives for component manufacturing. The company reported ₹17,713 crore revenue in FY24, a 45% increase, and ₹28,577 crore for the nine months ending December 2024. India's electronics sector is projected to reach ₹6 lakh crore by FY27. However, U.S. tariff threats could impact exports, with potential losses of $7 billion annually.

🇺🇸 Trump not a fan of India Tesla factories - U.S. President Donald Trump has criticized Tesla CEO Elon Musk's potential factory in India, calling it "unfair" to the U.S. Trump highlighted India's high import tariffs, which Tesla has long opposed, as a barrier to entry. In March, India introduced a policy lowering EV import taxes to 15% for companies investing $500 million and building a factory. Tesla has since chosen locations for showrooms in New Delhi and Mumbai and posted job listings. Despite India’s growing EV market, Trump argues that global tariffs disadvantage the U.S., though he has agreed to negotiate a trade deal with India.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Hyundai India aims to be a production hub for exports to emerging markets.

• HSBC India's pre-tax profit up 11% in 2024.

• Tie-ups in AI, semiconductors and biotech may soften US tariff blow.

• Patanjali Foods wins legal battle as SC quashes Rs 1.86 billion tax demand.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• A$AP Rocky not guilty of firearm assault on LA street.

• Mindy Kaling shines bright with her own Hollywood Walk of Fame Star.