Arvind's Newsletter

1.Govt set to notify EV policy with new investment rules as Tesla prepares for India entry

The Indian government is planning to ease import duties for EV manufacturers like Tesla by introducing a new policy requiring companies to invest Rs 4,150 crore and generate Rs 2,500 crore in revenue by the second year. The move aims to attract global players but it remains to be seen how the new relaxed policies will be received by domestic EV players.

Meanwhile, the government is also reportedly considering including EV charging infrastructure investments under the mandated capex requirements. This is required since without a robust charging network, widespread EV adoption will remain sluggish. The policy, however, is still evolving, leaving room for debate on whether it sufficiently balances foreign investment with domestic industry growth.

2.India’s aviation sector needs 20,000 more pilots

India’s aviation sector is soaring, but a pilot shortage threatens to slow its momentum. Civil aviation Minister K Rammohan Naidu warned that India needed at least 20,000 more pilots in the coming years to keep up with rising demand. High training costs and competition from airlines have worsened the crisis.

Speaking at UDAAN Bhawan in Delhi, he highlighted plans for 50 new airports in five years. To ease licensing, India has launched the Electronic Personnel License (EPL), becoming the second country after China to do so. EPL enables real-time verification, improving efficiency and supporting India’s Digital India mission.

3.Why Montek Singh Ahluwalia is right: India needs new states and new cities: Mint

Montek Singh Ahluwalia, the former deputy chairman of the erstwhile Planning Commission, is spot on in advocating for splitting large states into smaller ones to boost India’s growth.

The specific benefit he sees arising from new states is the creation of new cities as capitals of the new states, or the expansion of existing towns into larger ones to take on the new role as administrative centres that also often end up serving as business hubs. Additionally, this restructuring could improve governance, resulting from shortening the distance – physical as well as in terms of the chain of command — between the state headquarters and the administered units.

4.India's dependency on China upstream imports on the rise: McKinsey report

India is becoming increasingly dependent on upstream imports from China for goods that are then exported to markets such as the US and Europe, according to McKinsey & Company’s research on shifting patterns of global trade.

At the same time, India’s exports to China are declining, suggesting an emerging asymmetrical trade relationship between the world’s two largest developing economies.

India’s trade evolution is evident in its rising imports from China, which grew in value by an average of 6 per cent per year between 2017 and 2023. This increase was driven by chemicals (including pharmaceuticals) and machinery, where imports grew at an average annual rate of 10 per cent.

5.Trump embraces Russia, attacks Ukraine: GZero

At the end of the first month of his second presidency, Donald Trump moved toward a warm new relationship with Russia, a 180-degree pivot that created a horrifying situation for Ukraine and may undo all of the United States’ long-standing security alliances.

The realignment was announced at a meeting in Saudi Arabia between US Secretary of State Marco Rubio and Russian Foreign Minister Sergey Lavrov. The meeting was initially expected to focus on ending the war in Ukraine but ended up being about improving their diplomatic and economic ties —a move that would end the isolation Vladimir Putin’s government has endured since he ordered the invasion of Ukraine three years ago.

The meeting — held without the presence of Ukraine or European countries — was a huge win for Putin. The Americans had already signalled that they accepted his terms for talks on ending the war: No NATO membership for Ukraine, no territorial concessions by the Russians, and no US military presence to enforce the peace.

Even as European leaders were scrambling to respond, Trump cranked up the pressure, denouncing Volodymyr Zelensky as a dictator and blaming him for the war. Zelensky replied that Trump is “living in a disinformation space.” Vance denounced him in turn.

Trump’s friends at the Kremlin say he and Putin could meet this month, at which point their plans may become clearer.

6.Washington’s sudden rapprochement with Moscow is a growing worry for Beijing, analysts said. 

Though China has publicly welcomed US-Russia talks on ending the Ukraine war and their potentially reestablishing economic ties, it faces “a Catch-22 situation,” a former Chinese commerce ministry consultant told Bloomberg: It wants the war to end, but fears becoming the top US defense priority.

The Wall Street Journal’s chief China correspondent added that “the newfound Washington-Moscow dalliance has alarmed many in Beijing.” In particular, Moscow’s longheld relations with many Asian countries “might be a help if the Trump administration is trying to use Russia and the United States together to isolate China,” a Council on Foreign Relations expert wrote.

7.ChatGPT's growth is surging despite the DeepSeek buzz

The San Francisco-based tech company reported 400 million weekly active users as of February, up 33% from 300 million in December, the company’s chief operating officer, Brad Lightcap, told CNBC in an interview yesterday.

Lightcap told the network that the growth is behind the “natural progression” of ChatGPT as it becomes more useful and familiar to a broader group of people.

“People hear about it through word of mouth. They see the utility of it. They see their friends using it,” Lightcap said in the interview, adding that it takes time for individuals to find use cases that resonate. “There’s an overall effect of people really wanting these tools, and seeing that these tools are really valuable.”

8.Amazon will decide the next James Bond after reaching a deal to take creative control of the 007 franchise, capping years of uncertainty about the secret agent’s future.

The company’s agreement ended its longtime feud with the British Broccoli family that had tightly controlled the Bond brand for more than 60 years; they will remain co-owners in a new joint venture that will house the iconic franchise.

One Bond expert suggested that Amazon’s control could lead to a change in the agent’s British background, and some have speculated the character could get his own cinematic universe. Turning to the fans, Amazon founder Jeff Bezos wrote on X, “Who’s you pick as the next Bond?”

9.Jim Ratcliffe Built a Successful Empire, Until He Bought Man Utd

Jim Ratcliffe’s gambles on struggling industrial firms turned him into one of the UK’s richest men. So much so, his chemicals conglomerate boasts a “tried and tested toolkit” for acquisitions and declares “losing money” among its dislikes. Then he invested in one of the world’s biggest football club: Manchester United.

10.Japan to court Tesla on Nissan investment

A high-level Japanese group that includes a former prime minister has drawn up plans for Elon Musk’s Tesla to invest in the struggling carmaker Nissan, following the collapse of its merger talks with rival Honda.

The new proposal, led by former Tesla board member Hiro Mizuno, is being supported by ex-premier Yoshihide Suga and his former aide Hiroto Izumi, according to three people with direct knowledge of the move. Several board members at Nissan are aware of the initiative.

The group is hopeful Tesla will become a strategic investor since they believe the world’s largest pure electric-vehicle maker is keen to acquire Nissan’s plants in the US, according to the people. The factories would help it boost domestic manufacturing in response to Donald Trump’s tariff threats.