Tech, Startups and Industry Focus - Newspaper Summary

 The sources provide a comprehensive snapshot of India's technology, startup, and industrial landscape in October 2025, heavily contextualized by intensifying global geopolitical rivalries, shifts in US trade policy, and the disruptive emergence of Artificial Intelligence (AI).

1. Technology and AI: Global Disruption Meets Indian IT Resilience

Global AI and Infrastructure Race

The global landscape is defined by the explosive demand for computing power driven by Artificial Intelligence (AI).

• US Power Shortage: The rapid demand for AI-driven data centers (requiring 500 MW to 1 GW) has overwhelmed the archaic US power grid. Major tech titans like OpenAI and xAI are bypassing the grid by constructing their own gas-fired power generation facilities to fuel their massive data centers—a "Bring Your Own Power" boom. This demand surge was unexpected globally.
• China’s Preparedness: In contrast to the US grid constraints and permitting challenges, China is reported to be investing twice as much as the US this year in power plants, storage, and grid infrastructure.
• AI Ethics and Commerce: The sources highlight the emerging ethical and commercial edges of AI, such as OpenAI’s plan to launch a version of ChatGPT for verified adults, allowing access to mature content, potentially leading to monetization of AI intimacy. Meanwhile, the partnership between Walmart and OpenAI (allowing direct product purchases via ChatGPT) is seen as placing Walmart on a path to a trillion-dollar valuation by leveraging cutting-edge technology.
• AI in Finance: Within the financial sector, AI is viewed by S&P Global Ratings as an opportunity to automate routine analysis, freeing analysts to focus human judgment on complex, forward-looking risks like climate change and geopolitics.

Indian IT Services and AI Adoption

India’s top-tier software exporters are demonstrating resilience by securing steady deal wins despite persistent global uncertainty and US tariff headwinds impacting clients in consumer, retail, and manufacturing sectors.

• Q2 Performance: Companies like Infosys and LTIMindtree reported stronger-than-expected profits and revenue growth, largely driven by robust performance in the Banking, Financial Services, and Insurance (BFSI) vertical. Wipro, however, reported lower-than-expected profit due to a one-off customer bankruptcy and noted that discretionary spending is increasingly shifting towards AI and AI-related projects.
• Strategic Shift to AI: Indian IT firms are actively implementing AI capabilities in their services and winning new deals as AI drives discretionary spending. Infosys's CEO indicated that AI is generating newer opportunities rather than being a deflationary threat. TCS is planning a massive $6 billion investment over 5–7 years to build and operate a 1 GW data center.
• Need for Cutting-Edge Technology: Industry leaders emphasize that India’s ability to move forward requires focusing on cutting-edge technology and creativity to build global consumer brands, rather than relying solely on traditional large businesses. Human intuition and creativity are seen as crucial complements to AI, with leaders needing agility and skill to integrate technology effectively.

2. Startup and Funding Environment

The Indian startup ecosystem is characterized by buoyant funding activity, particularly in quick commerce and consumer-facing sectors, alongside a surge in digital credit usage.

• Quick Commerce Funding: Quick commerce platform Zepto closed a significant $450 million funding round, achieving a valuation of $7 billion. The investment, led by the US-based pension fund Calpers, signals strong international investor confidence.
• Consumption-Driven Growth: Eternal (Zomato/Blinkit) saw its revenue triple, driven primarily by its quick commerce arm, Blinkit, whose net order value jumped 137%. The company’s continued investments in rapid expansion (targeting 3,000 dark stores by March 2027) led to a drop in net profit, highlighting the capital-intensive nature of scaling quick commerce.
• The Gig Economy Crunch: The aggressive expansion of quick commerce platforms has caused a shortage of delivery agents and drivers, leading to a 30-50% surge in demand and a 40% spike in wages and incentives for gig workers.
• Mid-Market VC/PE Deals: The fund-raising environment is positive, particularly for mid-sized, founder-led consumer brands (like Wingreens Farms, Curefoods, Wow! Momo) that are looking to raise $200–500 million for distribution and marketing scale-up. However, private equity investors are prioritizing profitability, making it difficult for brands lacking clear visibility on EBITDA break-even to attract funding.
• Digital Public Infrastructure (DPI): India's DPI, particularly the Unified Payments Interface (UPI), is highlighted for its global potential, with RBI Governor Sanjay Malhotra advocating for its accessibility worldwide. India is exporting the Modular Open-Source Identity Platform (MOSIP) framework, which 27 countries are adopting or considering.
• Digital Credit Boom: Festive shopping is being financed by a significant surge in microloans and interest-free EMIs through fintech platforms like Snapmint and Kiwi, extending digital credit to purchase goods, including small-ticket items, even in Tier 2 and Tier 3 cities. This trend, however, raises concerns about reckless spending and a potential uptick in delayed repayments in the months following the festive season.

3. Key Industrial Sectors and Geopolitical Supply Chains

The sources reveal India's heavy manufacturing sectors are navigating supply chain vulnerabilities, dependence on China, and structural reforms aimed at achieving self-reliance.

• EV, Critical Minerals, and Cyber Risk: India's push for Electric Vehicles (EVs) faces significant supply chain risks due to a high dependence on China for key charger components (80-85% imported). Experts warn that as EV chargers become connected, intelligent systems, reliance on foreign-made components introduces significant cybersecurity vulnerabilities to both vehicles and charging infrastructure. This is compounded by China imposing export restrictions on vital EV components like rare earth magnets.
• Domestic Mineral Capacity: In response to global uncertainties, the government is actively nudging the private sector to establish domestic processing units for rare earth and critical minerals to secure local supplies.
• Semiconductors and Manufacturing Gaps: Despite high ambitions, a VC report flags critical gaps in India’s semiconductor ecosystem, noting that focusing only on design-led growth will not suffice without addressing execution challenges like the lack of operational advanced-node fabs and an anticipated shortage of 10,000–13,000 fabrication professionals by 2027.
• Pharma and CDMOs (Weight-Loss Drugs): The global boom in GLP-1 weight-loss drugs (like semaglutide) has caused investors to bet on Indian Contract Development and Manufacturing Organizations (CDMOs), which are rapidly expanding capacity. With Novo Nordisk's patent expiring in India by March 2026, the Indian market for generics is expected to hit ₹2,000–3,000 crore next fiscal year. Global giants like Eli Lilly are also investing in India to expand their global supply chains via contract manufacturers.
• Aerospace and Defense: The transformation of HAL’s Nashik plant from producing Soviet-origin fighters to manufacturing the indigenous LCA Tejas symbolizes India's drive toward self-reliance in military aviation.
• Infrastructure and Power Transmission: The sudden, global rise in demand for data centers and renewable energy is causing a critical worldwide shortage of essential components, especially high-voltage transformers. Companies like Hitachi Energy emphasize that capacity expansion is the "only real solution" to solve long supply waiting periods. India remains a "bright spot" for Hitachi Energy due to its policies supporting renewable energy integration.