StartupTalky

Blog

  • India’s Services Sector Growth Eases Slightly in March Amid Softer Demand

    The services sector in India experienced a slight moderation in March, as the HSBC Services PMI slid to 58.5 from 59.0 in February. Despite this minor downturn, the index remained comfortably above the 50-mark that delineates growth from shrinkage, indicating that the sector continues to swell, though at a less robust rate than in some recent months. The final figure also bested the not overly ambitious preliminary estimate of 57.7, reflecting a degree of underlying strength in demand.

    New business volumes, especially from domestic markets, continued to expand in March but at a reduced pace compared to February. Demand from international markets is the real weak spot in all of this, with new orders from abroad barely showing any growth at all, orders rising at the slowest rate in more than a year. If looking for signs of a softening economy, these would be in the top three. And they are.

    Easing Price Pressures and Weaker Sentiment

    Companies indicated that input costs rose at the slowest pace seen in five months, and, with vigorous competition in the marketplace, this has meant that any increase in prices that firms were able to charge has been minimal. In fact, the increase in selling prices was the smallest that has been seen since September 2021. This is not a good development for the bottom line.

    This environment of softer demand and fierce market competition led to diminished business confidence. The future activity index slipped to a seven-month low, suggesting that a number of firms are taking a more conservative approach to the next 12 months. Hiring was almost nonexistent in March, with the services sector and the manufacturing sector together providing the fewest new jobs in nearly a year.

    Rate Cut Expectations Grow

    Even with the slowdown, the overall private sector was still going strong. The HSBC India Composite PMI, which encompasses both services and manufacturing data, rose to 59.5 in March, the highest it had been in seven months, and it was once again driven by a robust performance from the manufacturing sector.

    As inflation recedes and confidence falls, the Reserve Bank of India might think about making policy easier to back up economic momentum. The markets think a potential 25 basis point rate cut could happen at the next RBI policy meeting, set for April 9, particularly since the economy as a whole looks to have grown at its slowest pace in four years over the last fiscal year.

    Even though growth continues, intensifying rivalry, hesitant recruitment, and worldwide apprehension imply a somewhat slower route for India’s service sector over the approaching months. This is particularly true for business process outsourcing (BPO) firms, which cater mostly to clients in the United States and the United Kingdom.

  • China Hits Back at U.S. with 34% Tariff, Escalating Trade War

    President Donald Trump’s latest trade initiation with China has been met with a powerful counter. China has declared a 34% tariff on all imports from the United States. This decision came just two days after Trump imposed an equal tariff on goods coming from China. It is worth noting that the Chinese response had been restrained up until now, with the most recent bilateral trade developments prompting a much-needed dialogue and serving as counterpoint to lieu d’ arrangements in the WTO.

    The U.S. Treasury’s new investment restrictions on Chinese technology and semiconductor sectors were condemned by China’s Ministry of Finance. It called the new measures a clear breach of international trade rules. The ministry also happens to run the company that is tasked with handling the new U.S. restrictions and with collecting any necessary duties on exports from the targeted sectors. The Chinese ministry warned, in a statement issued on the same day as the U.S. announcement, that the actions not only impact China’s economic interests but also global supply chain stability.

    Retaliation Hits U.S. Agriculture and Industry

    In conjunction with the tariff, China rolled out several targeted measures to put pressure on crucial parts of the U.S. economy. It immediately stopped importing chicken products from three American companies and suspended imports of sorghum from C&D (USA) Inc., citing health and safety issues. These decisions appear aimed at a very visible and crucial part of the U.S. economy, agriculture. That’s significant because agriculture was a big part of Trump’s electoral support, and the base has been a big target for these trade actions.

    Moreover, Beijing blacklisted 11 American companies, adding them to an “unreliable” list that prohibits them from trading with Chinese firms. Simultaneously, China placed 16 other US companies under a new export control regime. Then it opened an anti-dumping investigation into imports of US and Indian medical CT X-ray tubes : an investigation that, if it results in tariffs, could put the affected companies in a position of having to choose between their Chinese and their American customers. What do these moves mean? They signal that American corporate access to Chinese markets is under serious threat.

    The Ministry of Commerce also put forth fresh export regulations on key rare earth elements, materials that are crucial to the semiconductor industry and other sectors. The controls, which took effect Friday, could significantly affect global supply chains.

    Alongside trade limits, China has lodged an official complaint with the World Trade Organization regarding the newest U.S. tariffs. Authorities underscored that the country still advocates for multilateralism and urged the U.S. to drop its trade war approach. Some analysts suggest that Beijing’s more assertive posture these days may be a way of making sure that Washington, in particular, doesn’t forget about the need for real dialogue.

    U.S. stock futures and European indices have already reacted by sliding on the news of Beijing’s counter measures. The situation is escalating, and the way forward is anything but clear. But the tension and uncertainty pit two great economic forces against each other with the potential for collateral damage to the global economy.

  • Inflation Risks Rise as Fed Weighs Impact of Trump’s New Tariffs

    On Friday, Federal Reserve Chair Jerome Powell warned that President Trump’s new tariffs could not only reignite inflation, which is already running close to 2 percent (up from 1.6 percent in February), but, more importantly, could also slow down the economic growth we have been experiencing since mid-2009. His comments were made after we saw immediate trade retaliation from China, which sent the US markets tumbling. And it’s a big deal that the Fed chair is saying this.

    Although the Federal Reserve has taken major steps toward getting inflation down from its 2022 peak, Powell had to concede on Wednesday that the march toward the 2 percent target is slowing. The new tariffs, added to supply chain snags, swinging commodity prices, and geopolitical tensions, could make that slow progress even slower. Powell also pushed back against the idea that the Fed is on the verge of cutting interest rates. He said the Federal Open Market Committee will continue to follow a “highly cautious” approach that puts inflation control ahead of providing the economy with any additional stimulus.

    Wall Street Expectations Clash with Fed Caution

    The message from Powell was clear: monetary policy won’t respond to the market’s latest gyrations. The Fed chair and his lieutenants are in the midst of a strategy of doing not much of anything, but by design, with the hope that they will maintain whatever semblance of stability exists at the moment. Investors seem to think that’s a pretty shaky plan, and they’re betting on a much more stimulative story in the Fed’s future.

    The gulf that separates political pressure and monetary policy discipline is broadening. Trump is touting the tariffs as a way to fix trade imbalances, but their economic impact is becoming clear. The S&P 500 lost 6% this week, wiping out $5 trillion in value. Major indices fell across the board, and markets for commodities tanked amid fears of a worldwide recession.

    Kathy Bostjancic, the chief economist at Nationwide, observed that the Fed is now balancing a delicate situation, on one side, there’s inflation pushing up the cost of living, and on the other, economic growth that increasingly looks like it’s headed south. We got two employment-related reports in recent days, and they were a study in contrasts. One was solid, showing that job creation continues apace. The other was not so hot, showing that the unemployment rate seems to be edging up. We suspect that both reports are incomplete.

    Consumer and Business Confidence Under Pressure

    Powell also noted that concern is rising among consumers and businesses, and that sentiment is not as favorable as it was not long ago. There is also a possibility of this affecting investment, hiring, and spending in the next few months.

    The Fed’s aim is to avoid a situation where price shocks that are only temporary turn into prolonged inflation. Powell underscored that cautious posture as he spelled out the dangers of escalating global trade tensions. Tariffs affect pricing decisions across industries, and the longer they stay in place, the more pervasive their influence is likely to be.

  • Nuvoco Vistas Gets NCLT Nod for Vadraj Cement Acquisition

    Nirmal Group’s Nuvoco Vistas Corporation has got NCLT’s approval to buy Vadraj Cement. The acquisition is approximated at over INR 1800 crores. It was approved by the Mumbai bench of the NCLT.

    Nuvoco will execute the deal through Vanya Corporation, a fully owned subsidiary of Nuvoco. After the transaction, Vanya will merge with Vadraj Cement, making Vadraj Cement a direct subsidiary of Nuvoco. Nuvoco has said it will fund the acquisition without significantly increasing its existing consolidated debt.

    Strategic Investments to Revive Idle Assets

    Aside from the upfront acquisition price, Nuvoco has earmarked an additional INR 1,200 crore to reinstate and kick-start Vadraj’s operations, which have been dormant for almost seven years. Their operational capacity is expected to roughly triple from fiscal year 2025 to fiscal year 2027, with the facilities being fully online in the first half of fiscal year 2027.

    “The acquisition will be undertaken through Vanya Corporation, a wholly owned subsidiary of Nuvoco Vistas,” said Nuvoco Vistas. “Subsequently, Vanya will be merged with Vadraj Cement, as outlined in the Resolution Plan. After the merger, Vadraj Cement will become the wholly owned subsidiary of the company. A phased investment will be spread over 15-18 months from the date of actual handover by the Committee of Creditors towards getting the facility running and driving operational improvements across the VCL plants. The estimated target date to commence production is around third quarter of fiscal 2027.”

    Vadraj Cement has a 3.5 million tons per annum clinker plant in Kutch and a 6 million tons per annum grinding unit in Surat. Besides that, it has large reserves of limestone. These factors made Vadraj a big target in terms of long-term value for Nuvoco, who was especially focused on the western Indian markets.

    “The captive jetty in Kutch further enhances logistical efficiency. With this acquisition, Nuvoco’s total cement production capacity is set to increase to approx 31 MTPA, consolidating its position as the fifth-largest cement group in India for the long term,” Nuvoco Vistas stated.

    Strengthening Market Position and Operational Synergy

    Upon completing this deal, Nuvoco Vistas will take a step forward in its attempt to emerge as one of the top cement manufacturers in India. The company, according to Managing Director Jayakumar Krishnaswamy, is well-positioned to enhance logistical optimization and competitiveness, as well as to harness key regional market opportunities in the door’s path.

    Nuvoco’s growth strategy is quite simply spelled out in the form of a series of acquisitions that it has done in recent years. Its first major acquisition was that of Lafarge India in 2016. It then went on to acquire Emami Cement in 2020.

  • SEBI Rolls Out Pilot Framework for Risk-Return Verification in Financial Ads

    The Past Risk and Return Verification Agency (PaRRVA), a new validation agency set up by the Securities and Exchange Board of India (SEBI), is now operational. Its purpose is to verify the performance claims market intermediaries make in their advertisements and communications, investment advisors, research analysts, and stockbrokers, in particular. 

    This is yet another step in SEBI’s ongoing efforts to enhance transparency in the market and protect investors from the kinds of historical data that can mislead.

    The initial stage of the initiative will see SEBI operating a two-month pilot phase. It will be during this period that feedback from stakeholders will be incorporated and used to refine the framework. Agencies will start testing the verification process, but only under the watchful eye of the regulator. The circular makes a concerted push for financial promotions to be governed by a consistent, standardized, and truly accountable performance reporting framework.

    Eligibility and Responsibilities of Verification Agencies

    For a credit rating agency (CRA) to be acknowledged as a PaRRVA, it has to meet severe eligibility norms. These enumerate at least 15 years of operating experience, a net worth of at least 100 crore rupees, and the presence of a robust grievance redressal system that even includes an Online Dispute Resolution (ODR) mechanism. Recognition from SEBI is conferred only after the fulfillment of these prerequisites. Following that, the eligible CRA gets the nod to act as a verification agency.

    CRAs must also partner with a recognized stock exchange that will act as the PDC. The PDC is responsible for data collection from entities such as mutual funds and stock exchanges. In addition, the PDC supervises the verification system, ensuring data integrity, security, and confidentiality.

    Clear Disclaimers and Oversight to Guard Investor Interests

    The verification standards will be defined by PaRRVA, which will also oversee the management of grievances and the storage of all verified records for 5 years at minimum. If and when any risk-return data that has been verified by PaRRVA is displayed, it must be done with mandatory disclaimers that past performance can never be said to guarantee future outcomes, that verified returns do not indicate with certainty that any gains will be produced, and that what clients actually earn may look nothing like what was earned by any hypothetical client. Performative issues and disclaimers aside, how are we actually going to earn our bounce-back after the Great Recession?  How will we also serve you, our clients, in path-breaking ways after we earn that virtue?

    Conflicts between the verification agency and intermediaries will first be handled through internal resolution processes. If any disputes remain unresolved after that, the intermediaries and the verification agency can take them to the ODR platform. For now, SEBI has stated that the entire framework will operate under its oversight. There will be a committee, designated by SEBI, that will supervise the resolution platform.

    This initiative marks a momentous move in making sure that both retail and institutional investors receive credible, clear, and concise information when they are assessing financial products.

  • Kissht Gears Up for $225 Million IPO, Set to File DRHP by June 2025

    Digital lending platform Kissht is preparing to raise $225 million through an Initial Public Offering (IPO). The company aims to file its draft red herring prospectus (DRHP) by June 2025. This move comes as Kissht continues to expand its lending services and strengthen its market position in India’s fast-growing fintech sector.

    Merchant Bankers Appointed

    To manage the IPO process, Kissht has appointed ICICI Securities, UBS, and Motilal Oswal as merchant bankers. These firms will assist in regulatory filings, underwriting, and overall public listing management.

    Raising $225 million through the IPO will help Kissht to expand its lending portfolio, invest in technology, and strengthen its risk assessment capabilities.

    Strong Financial Performance

    Kissht’s parent company, OnEMI Technology, reported an impressive financial performance for FY25. The company’s assets under management (AUM) crossed INR 4,200 crore, marking a 55% increase. This growth is mainly because of the company’s strategic focus on longer-tenure loans and secured lending, including loans against property.

    There are different revenue streams of Kissht that contribute to its growth, including consumption loans, purchase financing, and MSME loans. The company has established partnerships with leading e-commerce platforms like Amazon and Flipkart to provide instant financing options at the point of purchase.

    Business Model and Market Position

    Founded in 2015 by Ranvir Singh and Krishnan Vishwanathan, Kissht has made a great name for itself as a key player in India’s digital lending space. The company provides unsecured personal loans to individuals and small businesses, helping bridge financial gaps with quick and accessible credit solutions.

    Kissht operates across multiple segments, including:

    • Consumer lending: Personal loans for salaried and self-employed individuals.
    • E-commerce financing: Instant credit for purchases on online platforms.
    • MSME and business loans: Working capital and growth financing for small enterprises.

    India’s fintech sector is under more scrutiny from the Reserve Bank of India (RBI), especially in unsecured lending. However, Kissht’s leadership is confident, stating that regulators and industry players now agree on best practices for responsible digital lending.

    With its upcoming IPO and strong growth, Kissht is set to expand further. Going public will help the company improve its services and grow its presence in India’s changing financial market.

    Sachin Tendulkar Becomes Kissht’s Brand Ambassador and Investor
    Cricket legend Sachin Tendulkar joins Kissht as a brand ambassador and strategic investor, strengthening the fintech company’s reach and vision.
    StartupTalkyNitin Konde

  • ChatGPT Creates Fake Adhaar and PAN Cards

    For Indian citizens, Aadhaar cards—issued by the Unique Identification Authority of India (UIDAI)—are an essential form of identification. However, with OpenAI’s introduction of GPT-4o’s picture-generating feature, this once-secure document is now up against an unexpected new threat. More than 700 million photos have been created by users since the launch of GPT-4o, some of which uncannily mimic actual Aadhaar and PAN cards. Social media users have started posting pictures of AI-generated Aadhaar cards with their own photos on them, which is a concerning trend. Important components like layout, fonts, and style seem incredibly lifelike, even though facial features aren’t always flawless. An image of Elon Musk’s Aadhaar card was even posted by one user; it was so realistically produced that it seemed like a legitimate government document.

    Live Tests were Conducted to Assess these Shocking Perils

    A test was carried out using ChatGPT’s image-generating tool in order to evaluate the danger. The outcome was shocking: at a look, it was hard to tell the created Aadhaar-like cards apart from the actual thing. In its GPT-4o system card, OpenAI has admitted to these issues, stating that the new model is more prone to abuse than earlier iterations such as DALL·E. Aadhaar isn’t the only thing at stake. Additionally, users have reported creating incredibly lifelike fake PAN cards. Experts caution that although Aadhaar has a strong backend verification system, it may be more difficult to validate other papers like PAN cards and driver’s licences, underscoring the growing need for stronger digital security measures.

    According to UIDAI’s website, the QR code that was previously included in Aadhaar print letters and e-Aadhaar solely carried the holder’s demographic data. UIDAI has unveiled a new secure QR code that includes the Aadhaar number holder’s photo and demographic information. Since UIDAI has digitally signed the information in the QR code, it is safe and impenetrable. Using UIDAI’s proprietary program, the newly signed secure QR code may be viewed and instantly verified against UIDAI digital signatures. As a result, a QR code scanner may quickly identify any attempted Aadhaar fraud.

    What Distinguishes GPT-4o?

    In contrast to previous DALL·E models, GPT-4o employs a native autoregressive model that allows it to produce graphics in ChatGPT in response to spoken language cues. OpenAI acknowledges that this change in architecture brings with it “new capabilities and new risks”, especially in relation to identity fraud. The creation of photorealistic pictures of minors, public personalities, and explicit or violent content is restricted by OpenAI. But as of right now, there are no clear restrictions on producing realistic government-issued ID templates. Experts emphasise the need for more robust legal frameworks and AI governance as the distinction between innovation and exploitation becomes increasingly hazy.

  • Alert for Google, Amazon, and Microsoft’s H-1B Visa Employees

    According to a recent post by the US’ renowned media house, US tech businesses are warning visa-holding employees not to leave the country for fear of being denied entry again. Under the new Trump administration’s immigration policies, Indian tech workers—who comprise the largest group of H-1B visa holders in the United States—are already dealing with increasing uncertainty. The H-1B program, which uses a lottery system to approve about 65,000 visas a year, has become crucial to the US IT industry. The majority of these approvals are given to Indians, who are followed by Chinese and Canadian citizens. Amazon, Google, Meta, Microsoft, and Apple are among the major employers.

    Fear Mounting Among Indians Working US

    Fearing denial of re-entry to the United States, two H-1B employees interviewed by a US media group have cancelled their plans to travel to India. One person voiced worries that a future child would be stateless—that is, neither American nor Indian—due to the administration’s possible modifications to birthright citizenship. According to an H-1B employee who spoke to a US media source via an attorney, everyone who is not a US citizen is presumed to be here illegally. Practical difficulties have also been brought about by the uncertainty. Businesses are paying for accelerated processing of visa extensions to offset delays. With a significant percentage of H-1B applications coming from IT outsourcing companies like Infosys and Cognisant, the tech sector is highly dependent on foreign expertise, particularly Indians.

    Green Card Tougher Nut to Crack Now

    The process of obtaining permanent residency is already incredibly drawn out for Indian tech workers. Even though they work for renowned companies, many Indians endure decades-long wait times because of per-country Green Card limits. Despite starting a business with hundreds of employees, Aravind Srinivas, CEO of the AI startup Perplexity, which was reportedly valued at $9 billion, posted on social media that he had been waiting three years for a green card. The administration’s larger immigration policy has caused a great deal of fear. Denial rates for skilled visas increased to 15% during Trump’s first term, and immigration lawyers are cautioning their clients that such increases could happen again.

    President Trump’s most recent executive order caused a great deal of criticism, mostly among Indian-Americans. Signing of the order took place on January 20, 2025. It stops children born to temporary visa holders—including those with H-1B—from obtaining U.S. citizenship at birth. Accordingly, children will only be eligible for U.S. citizenship if at least one of their parents is a citizen or a holder of a green card.

    With hundreds of thousands of Indians residing in the US on temporary work, study, or dependent visas, the ramifications are enormous. Critics point out that Trump’s interpretation of the 14th Amendment is inaccurate because it was enacted to guarantee citizenship to all people born in the United States, regardless of the immigration status of their parents.

  • Startups Protesting in Huge Numbers Following Minister Piyush Goyal’s ‘dukaandari’ Remark

    After Union Minister Piyush Goyal questioned the direction and focus of India’s startup ecosystem, entrepreneurs and leaders have risen to the occasion to defend it. Piyush Goyal critiqued the present trajectory of Indian companies, despite the fact that the country has the third-largest startup environment globally, behind the US and China. He noted that Chinese companies are focused on electric vehicles, battery technology, semiconductors, and artificial intelligence. On the other hand, many Indian businesses are concentrating on food delivery, betting, and fantasy sports. During his address at Startup Maha Kumbh, Goyal questioned if we needed to create chips or ice cream. “Dukaandari hi karna hai” means “want to do shopkeeping only?” Instead of striving for greater innovation and long-term advancement in critical technologies, he questioned whether the nation was satisfied with the creation of gig jobs.

    Big Players Strongly Defer from the Minister

    These comments have led to significant replies from well-known names in the startup and tech sector. Prominent investor and former Infosys CFO Mohandas Pai claimed the comparison to China was unjust and useless. He expressed concern about how government regulations are impeding the development of deep technology in India. These are poor analogies, Pai wrote on X. India has small startups in each of those fields as well. Instead of criticising the nation’s startups, Minister @PiyushGoyal ought to consider what he has done in his capacity as India’s minister to support the expansion of deep tech start-ups in his home country. He also attributed the obstacles to India’s financial structure and legislation. Pai further added that for long years, India’s hostile @FinMinIndia @nsitharaman harassed start-ups on angel tax, prohibited institutions from investing, and prevented insurance companies from investing, even though they did so all over the world. Due to FE regulations, @RBI frequently harasses foreign investors regarding remittances and AIFs and treats them poorly. Between 2014 and 2024, China made 845 billion dollars in investments. Just 160 billion dollars for India! He asked, “Why isn’t Minister @PiyushGoyal @AshwiniVaishnaw contributing to the resolution of these problems?” Ashneer Grover, a former co-founder of BharatPe, also blasted Goyal for disparaging the startup scene in India. According to him, India’s leaders are the only ones who require a “reality check.” Everybody else is living in India’s harsh reality.

    Zepto’s Palicha Defended India’s Startup Sector

    In response, Zepto founder Aadit Palicha praised Indian consumer internet businesses and emphasised the company’s effect, given that it was founded just 3.5 years ago. One of the pioneers of the fast e-commerce sector, Zepto became a unicorn in 2023. Through its online app, it launched the 10-minute delivery service, which its rivals have now embraced. According to Palicha, it is simple to condemn consumer internet companies in India, particularly when contrasting them with the advanced technological capabilities being developed in the US and China. In reality, there are currently around 1.5 lakh genuine people making a living on Zepto. Zepto has brought in over a billion dollars in foreign direct investment and paid over INR 1,000 crore in taxes to the government annually. On top of that, Zepto has spent hundreds of crores in India’s supply chains, particularly for fresh fruits and vegetables, he added. Palicha went on to say that big internet firms are crucial to the advancement of new technology. Why doesn’t India have a large-scale foundational AI model of its own? he asked.

  • Provides Innovative Solutions For Engraving, Marking And Cutting For A New Manufacturing Era

    New Delhi [India], April 4: Guided by its “Quality and Reliability”, Gujarat-based ‘SUCCESS TECHNOLOGIES’ established in the year 2013 is headquartered in Ahmedabad and is a leading Manufacturers and Exporter that serves Laser, mechanical engraving, scribing and dot peen, are the only ones to pioneer and master all these types of marking.

    With having direct presence both domestically and internationally, the company provides its best-in-class machinery with a comprehensive assortment of CNC Engraving Machines, Laser Engraving Machines, CNC Routers, Fiber Laser Cutting Machine, CNC Plasma Cutting Machine, CNC Wood Carving Machine, CNC Stone Engraving Machine, Wood Turning Lathe Machines, Fiber Laser Cutting Machine, etc.

    Backed by state-of-the-art quality parameters, the raw materials used to manufacture the products are procured only from trusted vendors in the industry. Over the decade, the company has strived to absorb and synchronise a leading global technology and enrichment and has won numerous domestic and foreign customers’ praise and recognition. The company’s products are manufactured with high precision to meet the set standards of the industry ensuring hassle-free management of the business operations with complete defect-freeness.

    Success Technologies CNC Engraving & Router Machine
    Success Technologies CNC Engraving & Router Machine

    With well-equipped manufacturing technology, the company has leveraged the strength of low maintenance, robust construction, dimensional accuracy, reliability, and versatility that is widely recognized by prestigious customers to increase the productivity and efficiency of their manufacturing operations. Additionally, they offer customized services to meet their customers’ specific needs.

    As the company presses ahead with supporting a new era of manufacturing, Managing Director, Rohit Patel says, “What is important in manufacturing is providing the products and services that are user-friendliness and flexible and there has to be a balance between the quality of the product and the after-services added on top. We have supplied over large-scale of machines so far to industrial and private customers which are efficiently operated and manned by our team of expert and skilled professionals. We wish to keep our business growing by providing this comprehensive solution to our customers.”