🤑 Turning tariffs into opportunities

PLUS: Amazon unveils 15-minute delivery in India

Author

Ruchirr Sharma
December 11, 2024

Good morning. A couple more work days to the holidays - you got this 💪 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

  • 🤑 Turning tariffs into opportunities

  • 🛒 Amazon unveils 15-minute delivery in India

  • 🗞️ Bite-sized summaries

    • 💼 Indians are becoming more employable

    • ♻️ India’s renewable energy challenge

    • 💰️ Amazon India’s plan to boost startups

  • 🧑‍🍳 What else is cookin’?

  • 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

indicates per gram rate in Delhi | Stock data as of market close 10/12/2024

  • Indian stock markets closed mixed. IT stocks surged, pushing the Nifty IT index to an all-time high. Investors remained cautious ahead of upcoming inflation data that could impact monetary policy decisions.

🌍️ International

Data as of market close 10/12/2024

  • U.S. stock markets experienced a modest decline. Oracle's disappointing growth figures contributed to the downturn. Investors were cautious ahead of the upcoming inflation report, which is crucial for the Federal Reserve's interest rate decision next week.

TRADE

As global trade realigns in the wake of Donald Trump’s re-election and the US’s renewed tariff policies on China, a critical question emerges: can India transform this challenge into a golden opportunity?

India’s trade story with the US and China couldn’t be more different. The US is India’s largest trade surplus partner, with a $33.7B surplus, while China looms as its largest trade deficit, at $106 billion. With Trump considering a 10% tariff hike on Chinese imports, India has a rare opening to position itself as a viable alternative—if it can rise to the occasion.

A closer look at the US’s top imports from China reveals 28 key products, whereas India has a combined export potential of $30.5B. These sectors stand out:

  • High-tech items: Smartphones and pharmaceuticals dominate, representing 62.7% of the opportunity.

  • Intermediate goods: Vehicle parts, electric motors, and machinery components.

  • Labor-intensive goods: Textiles, apparel, and footwear.

India’s edge lies in its expanding production capabilities and supportive policies like the Production Linked Incentive (PLI) scheme. For example, Apple’s increasing reliance on Indian manufacturing underscores the country’s growing competitiveness in high-tech exports.

To seize this opportunity, India must focus on three key strategies:

  1. Attract Foreign Direct Investment (FDI): Boosting capital inflows can enhance production capacity and technological innovation.

  2. Facilitate Technology Transfer: Critical for scaling high-tech sectors like data processing machines, lithium batteries, and toys.

  3. Forge Strategic Partnerships: Collaborating with US firms can solidify India’s role as a trusted trade partner.

Overall: By adopting these measures, India could elevate its export profile while helping the US diversify away from Chinese imports—a win-win for both nations. In this shifting global trade landscape, India’s proactive steps today could define its economic trajectory for decades to come.

Read more: Economic Times

QUICK COMMERCE

Amazon is gearing up to revolutionize India’s quick-commerce space with the launch of its 15-minute delivery service, starting in Bengaluru this month. Dubbed "Tez," the service will initially offer 1,000–2,000 daily essentials, with plans to scale to other cities soon. This move underscores Amazon's commitment to catering to urban consumers who demand faster deliveries, a rising trend in the e-commerce sector.

Quick commerce is already heating up in India, with competitors like Flipkart’s "Minutes," Zomato’s Blinkit, Swiggy Instamart, and Zepto leading the charge. While some worry quick delivery services could disrupt traditional e-commerce, Amazon India SVP Amit Agarwal emphasized the company’s focus on delivering the largest product selection with unmatched fulfillment speed.

This launch aligns with Amazon’s robust performance in India. In fiscal 2024, the company reported a 14% increase in operating revenue to ₹25,406 crore, while narrowing net losses by 28%. Categories like grocery and B2B sales showed impressive growth, rising by 50% and 100% year-over-year, respectively.

However, Amazon India has faced leadership changes, with the recent exit of country head Manish Tiwary. His successor, Samir Kumar, is expected to bring stability to the company’s operations under Agarwal’s leadership.

Overall: As Amazon advocates for e-commerce-friendly regulations, it is positioning itself to reshape the industry landscape. With the introduction of "Tez," the battle for dominance in India’s quick-commerce market is set to intensify.

GENERAL OVERVIEW

🗞️ Bite-sized summaries

💼 Indians are becoming more employable - A report reveals that employability among Indian graduates has improved to 54.81%, up from 51.25% last year and 33% a decade ago. This growth, driven by skill development in AI, cloud computing, and automation, positions India as a global talent leader in IT, engineering, and healthcare. Initiatives like Skill India and the National Education Policy are boosting vocational training, while hybrid work models and digital opportunities expand global contributions. By 2030, India is expected to play a key role in adding $500 billion to the global economy, addressing workforce demands in green energy, fintech, and healthcare sectors worldwide.

♻️ India’s renewable energy challenge - At COP29 in Azerbaijan, Ajay Mathur, Director General of the International Solar Alliance (ISA), spotlighted pressing renewable energy challenges. Despite India’s re-election as ISA President, Mathur revealed a stark investment imbalance—80% flows to China, leaving India, Brazil, and Africa with mere fragments. ISA is tackling this disparity through innovative solar projects, skill-building initiatives, and global partnerships. Key COP29 outcomes included advancing carbon trading rules and pledging ambitious targets for energy storage and grid expansion. Mathur underscored the need for financial guarantees and vibrant startup ecosystems to unlock investments in underserved regions, aspiring to scale India’s renewable energy successes worldwide.

💰️ Amazon India’s plan to boost startups - At Amazon SMBhav 2024, Amazon India made bold commitments to drive growth for startups and small businesses. The company pledged $120 million to support startups focused on domestic manufacturing and brand exports, alongside an ambitious goal to enable $80 billion in exports from India. To further empower businesses, Amazon launched Amazon Shipping and Amazon Freight, offering nationwide logistics solutions, including intercity and intracity full truck load services. These initiatives leverage cutting-edge AI and logistics technology, strengthening Amazon's commitment to enhancing India’s export and manufacturing sectors while providing fast, reliable delivery networks for sellers.

HEADLINES

🧑‍🍳 What else is cookin’?

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

CULTURE

🍿 Entertainment, Entertainment, Entertainment

Source: Searchlight Pictures

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