🤖 ChatGPT Crashes, 📉 India’s Growth Gets Snipped

🌞 Good Morning, Wednesday!

It’s midweek deja brew! If you thought your WiFi died yesterday—it wasn’t just you. ChatGPT took a global nap, Zoom calls stalled, and the internet briefly remembered how to function without AI.

Let’s jump into today’s cup of business, tech, and tadka.

🫖 Chai Shots

• 📉 India’s growth forecast trimmed: The World Bank dialled down India’s FY26 GDP growth outlook to 6.3%, citing trade friction and sluggish exports. But hey, we're still topping the global growth charts. More in the Big Brew

• 🤝 India-US trade deal on the horizon: After a week of talks, Delhi and Washington are inching toward the first phase of a new bilateral trade deal. Digital trade, customs, and agricultural standards are all on the table. An interim agreement could arrive by July 9.

• 🚗 Tesla's robotaxis warm up in Austin: Tesla has officially been listed as a self-driving operator in Austin, Texas. Its driverless fleet is expected to hit the streets by June 12. Stock revved up over 4% after the news.

• 🛠️ ChatGPT takes a tea break: OpenAI’s ChatGPT went offline globally for a few hours, throwing users into panic mode. It’s back now—after engineers did some behind-the-scenes CPR.

📈 Market Masala

• 📉 Sensex stumbles, Nifty loses altitude: Markets struggled for direction on Tuesday, ending in the red as financial heavyweights weighed on sentiment. The Sensex slipped 35 points to wrap up at 76,456, and the Nifty fell below the 25,150 mark- but juuuust. With global cues mixed and investors bracing for key inflation data, banking stocks took the biggest hit.

• 🪙 Gold ETFs shine again: After a two-month breather, gold exchange-traded funds (ETFs) saw fresh inflows in May. Net assets under management surged to ₹62,453 crore as jittery investors hedged against macro uncertainty and currency fluctuations.

• 🛵 BigBasket bets on 10-minute food rush: Tata-backed BigBasket is setting up for a countrywide blitz into food delivery, planning to offer meals in 10 minutes or less by March 2026. With over 1,200 dark stores in the works, it’s gearing up to take on Blinkit, Zepto, and Swiggy Snacc in the fast-growing ₹7,100 crore quick-commerce battlefield.

• 📊 Markets on CPI watch: All eyes are now on the upcoming US inflation numbers and Federal Reserve commentary. A surprise on either front could jolt global sentiment—and influence foreign fund flows into Indian equities.

🌍 Global Masala

• 📈 Wall Street rides trade optimism wave: US equities marched higher for the third consecutive day as investors bet on a potential thaw in US-China trade tensions. The Dow inched up 105 points, while the S&P 500 climbed 0.55% to 6,038.81, and the Nasdaq gained 0.63%, closing at 19,714.99. The rally comes amid ongoing trade negotiations in London, where US Commerce Secretary Howard Lutnick hinted at promising progress, saying both sides were “deep in focused talks.”

• 🌐 World Bank cuts global GDP forecast to 2.3%: With tariff fights and policy chaos rising, the World Bank now expects the weakest global growth since the 1960s—excluding recessions. Living standards could take a hit unless countries course-correct.

• 🤝 US-China trade tango continues: Talks in London entered day two with cautious optimism. The US wants rare earth access; China wants fewer restrictions. Markets are hopeful, but no deal yet.

🍵 The Big Brew 📈 India’s Growth Gets a Reality Check from the World Bank

India may still be the world’s fastest-growing major economy, but even that title couldn’t shield it from the latest World Bank downgrade.

In its June 2025 Global Economic Prospects report, the World Bank trimmed India’s FY26 growth forecast to 6.3%, down 40 basis points from its earlier estimate. The culprit? Weak exports, a global slowdown in industrial production, and rising trade barriers.

But don’t reach for the panic button just yet. The report also expects:

• 📈 Recovery ahead: Growth may bounce back to 6.6% by FY27–28, powered by India’s booming services sector.

• 💰 Better fiscal shape: Tax revenues are climbing while government spending is tightening, improving India’s debt-to-GDP ratio.

• 🚢 Export hurdles: Global demand for Indian goods is down as major trading partners deal with sluggish economies and rising tariffs.

☕ What does this mean?

India’s resilience is real, but not invincible. While macro indicators are still strong, global turbulence could dent momentum. The big takeaway? Time for India to double down on services exports and make its domestic demand bulletproof.

🚀 Startup Scoop

• 💍 GIVA raises ₹450 Cr to scale sparkle: D2C jewellery brand GIVA is locking in ₹450 Cr led by Creaegis and Premji Invest. Valued now at $374M, it's planning a big leap—despite widening losses due to soaring metal costs.

• 🥟 Wow! Momo picks up ₹85 Cr in debt: Quick-service king Wow! Momo has borrowed ₹85 Cr from Stride Ventures to refinance loans and expand into FMCG and HoReCa. It’s targeting 1,500 stores in three years.

• 📉 Byju’s US fire sale stuns observers: Edtech giant Byju’s has offloaded US acquisitions Epic and Tynker for peanuts—$95M and $2.2M respectively—after buying them for over $700M. Bankruptcy woes and legal brawls continue on both sides of the globe.

• 🗣️ Rumik.ai chats its way to $5M: Mumbai-based AI startup Rumik.ai is set to raise $5M in a round led by Elevation Capital. Its product "Ira" mixes emotional intelligence with regional language support—like Hinglish and Bangla—to make customer service smarter, not colder.

🤔 Chai Break Trivia

🧈 Did you know India has one of the largest reserves of rare earth elements—but only taps into about 1% of its potential? Most of the world’s rare earth supply still flows through China. Time to mine that Bharat potential.

🔮 What’s Brewing Next

• 💸 India Inc’s ₹850B capex sprint: According to S&P, corporate India is expected to double capital expenditure to $850B over the next five years—led by power, airlines, and green hydrogen bets.

🏁 That’s a Wrap!

If your AI crashed, your gold dipped, or your momo cravings kicked in yesterday—you weren’t alone. The world’s heating up (literally and economically), but India’s hustle continues with ambition, code, and capex.

Catch you tomorrow with more gupshup over global moves, market masala, and startup spice. Until then, stay caffeinated and curious. ☕🇮🇳