🇮🇳🤝🇬🇧 India & UK Ink $34B Trade Deal

☀️ Happy Friday, folks — the week’s final boss has arrived!

You’ve survived team syncs, tariff tantrums, and at least one awkward Zoom silence. As we coast into the weekend, your chai is brewed with everything from Modi’s mega handshake with the UK 🇮🇳🤝🇬🇧 to markets catching the tariff flu and AI setting Wall Street on fire (again).

Let’s dig in before your brain goes into weekend mode entirely 🍵👇

☀️ Chai Shots

• 🇮🇳🇬🇧 India and UK ink historic $34B trade deal: After years of on-and-off talks, the FTA was signed during PM Modi’s UK visit. India will cut tariffs on Scotch, cars, and EVs, while gaining zero-duty access for 99% of its exports to the UK — from textiles to chemicals.

• 📉 Sensex slumps 500 points, Nifty falls below 25,100: Indian markets slipped into the red, spooked by lacklustre Q1 results, trade deal jitters with the US, and Trump’s unexpected Fed visit. IT, FMCG, and realty led the decline.

• 🛰️ OpenAI preps GPT-5 for August release: The next-gen AI model will reportedly combine multiple systems into one powerful toolset. It’s expected to debut in early August — though release dates remain fluid, as always with OpenAI.

• 💸 Elevation trims stake in Ixigo parent for ₹226 Cr: VC firm Elevation Capital offloaded another 1.01 Cr shares in Le Travenues Technology, continuing its exit from the travel aggregator while Schroders upped its stake to ~5%.

📊 Market Masala

• 📉 Markets fall despite global cues: The Nifty and Sensex reversed Thursday’s gains, pressured by weak IT earnings and uncertainty over US-India tariffs. Nifty Midcap 100 managed to rise 0.62%, while smallcaps stayed flat.

• 📉 Puma slashes full-year forecast: Facing poor sales in key markets and tariff worries, the German athleisure brand now expects losses in FY25 — a sharp U-turn from its earlier €600M profit guidance.

• 🏗️ Dixon Tech gets nod for JV with China’s Longcheer: Dixon Technologies has received government approval to form a joint venture with Longcheer, where Dixon will hold 74% ownership. The partnership will boost Dixon’s design and manufacturing capabilities across smartphones, wearables, AI-powered PCs, and healthcare devices, while also pushing for localisation of sub-component manufacturing in India.

• 🧱 Cement giants eye Deccan Cements amid Andhra infra boom: Chettinad Cement and JK Lakshmi are in talks to acquire Deccan Cements, valuing it at ₹3,110 Cr. With Amaravati’s ₹50,000 Cr revamp and regional cement demand rising, Deccan’s Vijayawada-based plants offer strategic value despite recent profit declines.

• ⚡ Ohm Mobility powers down for good: Hyderabad-based EV fintech startup Ohm Mobility has officially shut shop after a five-year ride marked by pivots and funding rounds that didn’t quite translate into scale. Founded in 2020 by Nikhil Nair, the company aimed to simplify electric vehicle financing by connecting fleet operators and battery makers with lenders — even using real-time EV data to assess credit risk.

• 💊 Tata 1mg revenue jumps, but Digital arm takes a hit: Tata 1mg’s FY25 turnover rose 20% YoY to ₹2,392 Cr, thanks to strong digital healthcare demand. Tata Cliq and Croma also saw modest revenue growth. However, Tata Digital as a whole saw a 14% drop in consolidated turnover, according to Tata Sons’ annual report.

🌍 Global Masala

• 💹 Wall Street hits records on Alphabet’s AI growth: The S&P 500 notched a fourth consecutive record close, driven by Alphabet’s earnings beat and AI spending spree. Tesla, however, dropped 8% after warning of tough quarters ahead.

• 🛰️ Starlink suffers 2.5-hour outage post T-Mobile launch: Over 60,000 users were affected. Elon Musk apologised, and services were mostly restored by evening. The glitch followed the public launch of Starlink-powered phone service via T-Mobile.

• ₿ Tesla’s bitcoin sale costs it billions in missed gains: Tesla’s early exit from bitcoin in 2022 wiped out billions in potential profit. It sold 75% of its holdings when prices were low—crypto gains this quarter hit $284M, but if Tesla had held, that stash would now be worth over $5B. Meanwhile, core EV sales continue to slow, and the company faces tariff threats and rising R&D costs.

☕ The Big Brew: Inside the $34 Billion India–UK FTA

India and the UK finally inked their long-awaited Free Trade Agreement — the biggest trade pact either country has signed in recent history. While the handshakes were warm, the fine print is hotter.

🔍 Here’s what’s in the deal:

• 🇮🇳 For India: 99% of exports — from textiles to pharma to electronics — will now face zero tariffs in the UK. The leather industry is projected to gain 5% UK market share, and software exports could jump 20% annually.

• 🇬🇧 For the UK: India will drop average tariffs on British goods from 15% to 3%. Scotch whisky duties will fall to 40% over 10 years (from 150%). Auto tariffs go from over 100% to just 10%, under a quota system.

🏛️ The boldest move?

India agreed — for the first time — to open up central government procurement to a partner outside the UAE. About 40,000 high-value contracts will now be accessible to UK companies.

🤝 Strategic shifts:

• UK goods with just 20% domestic content will be treated as “local” under India’s Make in India policy.

• Sensitive sectors like health and MSMEs remain excluded.

• Experts say this could set a precedent for FTAs with the EU or US, reducing India’s ability to use government contracts to protect domestic industries.

What does this mean?

• 🧳 For exporters: Huge win for India’s textile, leather, and chemical players — especially in Tier II and III towns.

• 📉 For states: With excise duties untouched, Scotch may not get drastically cheaper — state taxes will still play spoiler.

• 🧩 For trade watchers: This marks a new era where India is willing to open procurement — a previously untouchable policy lever.

• ⚠️ For future FTAs: The UK deal could become a blueprint, for better or worse.

🚀 Startup Scoop

• 🛍️ SuperK raises ₹100 Cr to go deeper into small-town India: Backed by Binny Bansal and Mithun Sacheti (with Shubman Gill as investor), SuperK is expanding its grocery + general merchandise chain in Tier 3 and 4 towns. It’s now testing appliances and smartphones too.

• 🔋 EVeez bags $5.4M to serve gig workers: The EV subscription startup will use the funds to scale its affordable two-wheeler rental model across 30 cities, helping gig workers join delivery platforms without owning vehicles.

• 🛡️ Bharatsure raises ₹6 Cr, launches EV station cover: In partnership with Battery Smart, the insurtech firm will insure battery swapping stations — offering coverage for natural disasters and accidents. It’s already served 2 lakh customers.

• 🧠 LISSUN acquires Being Cares for AI-powered mental health: The hybrid care startup is blending therapist-led programs with AI diagnostics for autism, ADHD, and learning delays. Founders of Being Cares will now lead product and tech at LISSUN.

🧠 Chai Break Trivia

🧠 Did you know lobsters taste with their legs and chew with their stomachs?
Tiny hairs on their legs help them detect chemicals in the water (aka “taste”), and their stomach has a built-in set of teeth called a gastric mill. Basically, they're walking, underwater food processors 🦞

🔭 What’s Brewing Next?

• 📦 Shadowfax plans ₹2,000 Cr IPO to fuel growth, targeting a ₹8,500 Cr valuation as it trims losses and expands its delivery reach.

☕ That’s a full cup for today!

Your Friday masala was packed with trade fireworks, market turbulence, and a big push toward Bharat 2.0 retail and mobility. We’ll be back with your first brew of the week. Until then — stay caffeinated and cross those tariffs wisely.

Have a chai-tastic weekend! 🫶🇮🇳