Arvind's Newsletter

1.From India’s dip to China’s rise: What September PMI data says about Asia’s factories: Mint

Asia’s factory activity in September reflected a patchy but stabilizing trend. India’s manufacturing expansion slowed slightly, while China and South Korea showed early signs of revival.

The latest set of data from S&P Global manufacturing PMI suggests that the region’s recovery remains two-speed—bolstered by domestic resilience in some economies, yet constrained by weak global demand.

India’s manufacturing PMI eased to 57.7 from 59.3 in August, indicating continued expansion but at a slower pace. China’s reading rose to 51.2, its strongest in six months, hinting at tentative stabilization after months of softness, while South Korea returned to growth territory at 50.7, ending an eight-month contraction streak on the back of improving export orders.

2.Startups close $676 million in funding this week, up 10x on-year: Economic Times

Startups closed around $676.1 million between October 11 and 17, a 10-fold increase from the $67.3 million raised during the same period last year, on the heels of a quick commerce platform’s $450 million funding round.

The tally was also more than two-fold from the $316.1 million raised the previous week.

The number of deals, however, dropped on a year-on-year (YoY) basis, with 20 transactions recorded this week compared with 33 a year earlier.

Quick commerce platform Zepto closed a $450 million round in a mix of primary and secondary transactions. The primary funding valued the company at $7 billion, up from the $5 billion ascribed to it last year. According to documents sourced from the Registrar of Companies (RoC), Zepto received a primary infusion of nearly $300 million.

3.Embraer, Mahindra expand partnership to develop C-390 Millennium aircraft in India: Reuters

The defense and security division of Brazilian planemaker Embraer, said on Friday it had signed a strategic cooperation agreement with India's Mahindra Group, including joint initiatives for the development and production of the C-390 Millennium aircraft in India.

The agreement supports the promotion of the C-390 Millennium aircraft for the Indian Air Force's Medium Transport Aircraft program and builds on a 2024 memorandum of understanding.

Its scope has now been expanded to include joint marketing efforts, industrialization, and the development of India as a regional hub for the aircraft, Embraer said in a statement. Embraer added that it will work with Mahindra Group to identify opportunities for manufacturing, assembly facilities, supply chain and maintenance, repair and operation activities in India.

4.Coca-Cola Weighs $1 Billion IPO of Indian Bottling Unit: Bloomberg

After Hyundai and LG Electronics, Coco Cola is considering taking its Indian bottling unit public in a deal that may fetch $1 billion, according to people familiar with the matter.

The company has met with bankers in recent weeks to discuss the possible initial public offering of Hindustan Coca-Cola Beverages Pvt., which would value the unit at about $10 billion, according to the people, who asked not to be identified discussing a private matter. It’s still early in the process and the company hasn’t hired bankers for the deal yet, according to the people.

5.Donald Trump says Narendra Modi pledged India would stop buying Russian oil (Financial Times) but New Delhi said the two leaders haven’t communicated in recent days. 

Donald Trump said Indian Prime Minister Narendra Modi promised that his country would stop buying Russian oil, in a move that could help ease trade tensions between the two nations.

Trump told reporters that Modi pledged in a phone call on Wednesday to halt the purchases, over which Washington had imposed an additional 25 per cent tariff in August. The levy applied on top of Trump’s 25 per cent so-called reciprocal tariff.

Trump said Modi could not stop buying the oil “immediately”, but that a “process had started”.

“Once again, Donald Trump has made a claim that may not square with facts,” a leading Indian journalist said. Still, “New Delhi has little option but to tread with caution,”reported the Indian Express.

6.Plug-in hybrids pollute almost as much as diesel cars : The Guardian

Analysis of 800,000 European cars found real-world pollution from plug-in hybrids nearly five times greater than lab tests.

The cars, which can run on electric batteries as well as combustion engines, have been promoted by European carmakers as a way to cover long distances in a single drive – unlike fully electric cars – while still reducing emissions.

Data shows PHEVs emit just 19% less CO₂ than petrol and diesel cars, an analysis by the non-profit advocacy group Transport and Environment found on Thursday. Under laboratory tests, they were assumed to be 75% less polluting.

The researchers analysed data from the onboard fuel consumption meters of 800,000 cars registered in Europe between 2021 and 2023. They found real-world carbon dioxide emissions from PHEVs in 2023 were 4.9 times greater than those from standardised laboratory tests, having risen from being 3.5 times greater in 2021.

7.Norway declared victory in its effort to phase out gas car sales by 2025: Electrek

A slew of tax exemptions, free access to toll roads, and other incentives have rapidly driven uptake of electric vehicles in Norway; last year, 89% of all cars sold were electric, and that figure has risen to over 95% this year.

Oslo will now start to roll back some tax exemptions over the next two years. Norway is an outlier, though: About one in five cars sold in Europe in 2024 was electric, and several larger European markets, including Germany and France, have begun rolling back subsidies. After years of increasing European market share, EV growth has slowed, the International Energy Agency reported this year.

8.Apple signs $700mn deal for US Formula 1 rights: Financial Times

Apple has signed a $700mn deal to stream Formula 1 races in the US, as the iPhone maker joins Big Tech groups Amazon and Netflix in expanding further into screening live sport.

The two groups confirmed on Friday they had agreed a five-year partnership ahead of this weekend’s US Grand Prix in Austin. Apple will begin broadcasting F1 in 2026, replacing Disney-owned broadcaster ESPN only in the US.

The deal is worth about $140mn a year, according to a person with knowledge of the matter, a significant increase on the around $85mn paid by ESPN. The Financial Times was the first to report the talks between Apple and F1.

9.What AI Companions Are Missing: Adam Grant on Substack

“I was stunned to learn recently that 72 percent of teens have used AI companions—and nearly a third find them as satisfying or more satisfying than human interaction. It’s not hard to figure out why: AI chatbots have already surpassed the average human at offering empathy. Critics have sounded the alarm about what can go wrong when AI chatbots shower teens with praise and validation. But we’re overlooking a more fatal flaw in their design.

The biggest problem with AI companions is not that they’re sycophants. It’s that the interactions they manufacture are one-sided.”

“As human beings, one of our fundamental motives is to matter. Mattering is not just about feeling valued by others—it’s also about feeling that we add value to others. We need to know that our actions make a difference.

Extensive research shows that a sense of contribution is vital to our happiness, health, and success. It’s a big part of the meaning that comes from raising kids and the joy that comes from caring for pets. There’s even evidence that giving support is a better predictor of longevity than receiving it—and that elderly people live longer if they’re randomly assigned to responsibilities like caring for a plant.

In healthy relationships, we give as much as we receive. In AI exchanges, we can receive endless streams of information and affirmation, but we have nothing to give back. No matter how good large language models become at simulating care, they’ll never substitute for real relationships, because they have no needs to care for.”

Meanwhile, Sam Altman says ChatGPT will soon sext with verified adults (The Verge). OpenAI will soon allow “erotica” for ChatGPT users who verify their age on the platform. In an X post on Tuesday, OpenAI CEO Sam Altman said the company will add support for mature conversations when it launches age-gating in December.

10.Nobody Wants This to Mr Scorsese: 11 of the best TV shows to watch this October: BBC

From the return of Netflix's hit rom-com with Kristen Bell and Adam Brody to a prequel series to Stephen King's It and a five-part documentary about Martin Scorsese.