Happy Friday! High tariffs may reduce India’s electronics exports to the US, but its edge over China and Vietnam could drive growth. This and more in today’s ETtech Morning Dispatch.Also in the letter:■ ETtech Done Deals■ X challenges Section 69A at HC■ Securis Finance secures NBFC licenceIt’ll be advantage for India in long run for electronics 119961237India’s electronics exports to the US may decline as high tariffs curb orders and investment.
However, its advantage over China and Vietnam could help if New Delhi accelerates supply chain expansion.Details: The US has set a 27% tariff on Indian imports, significantly lower than the 54% for China (34% on Wednesday on top of existing tariffs), 46% for Vietnam, 36% for Thailand, and 32% for Taiwan.India’s electronics exports are expected to reach $37.
5 billion in FY25, with $13.5 billion destined for the US. However, industry experts warn the new tariffs could slow growth.
The move comes as India aims for $100 billion in electronics exports by 2029-30, a goal that may now face headwinds. 119961281Tell me more: Apple will be among the hardest hit, as its primary export hubs in India, Vietnam, and China face steep US tariffs.India has become a critical manufacturing and export base for Apple, which was set to export $8-9 billion worth of iPhones to the US this financial year.
The company must now choose between cutting production in these regions or passing the increased costs onto customers.IT impact:India's $280 billion software services industry may grow slower as Trump's reciprocal tariffs and inflation pressures weigh on US companies.The US accounts for half of the industry’s revenue, making Indian firms vulnerable to such policy shifts.
Due to economic uncertainty in the US, growth in the first quarter of the fiscal year is now expected to fall short of forecasts.Industry analysts project revenue growth could decline by up to 1.3% sequentially in the March quarter as policy disruptions and weaker client spending delay the sector’s recovery.
Also Read: How Trump’s tariffs will impact the tech sectorOla Krutrim ramps up AI hiring amid exits 119961301Ola’s AI arm, Krutrim, is expanding hiring for its AI labs despite ongoing senior-level exits.What’s happening:Krutrim is ramping up recruitment for AI roles in the US, Singapore, and Bengaluru, with research and cloud engineering openings.The Bhavish Aggarwal-led company recently appointed Sunit S as senior vice president of product.
Recent departures:Earlier this year, two senior leaders—applied AI director Ashish Kumar and senior engineering manager Priyanka Nayak, both long-time Ola employees—left the company.Over the past year, Krutrim has seen nearly a dozen exits across junior to senior management levels, including VP-level roles like Vipul Shah (products), Gautam Bhargava (AI engineering), and Ravi Jain (business head), despite its AI expansion.Current state:Last month, Aggarwal announced a Rs 2,000 crore investment in Krutrim AI labs, with plans to increase it to Rs 10,000 crore next year.
He also revealed that Krutrim is offering the open-source community access to its AI models, including Krutrim 2 LLM, vision model Chitrarth 1, and speech model Dhwani.Also Read: Ola's AI venture runs into human (resources) glitchTravel fintech startup Scapia raises $40 million from Peak XV, existing investors 119961346Anil Goteti, CEO, ScapiaTravel-focused fintech startup Scapia, founded by former Flipkart executive Anil Goteti, has raised $40 million in an equity round led by Peak XV Partners, with participation from existing investors Elevation Capital, Z47, and 3State Capital.Quick lookback:Scapia nearly shut down due to a severe business slowdown after the Reserve Bank of India (RBI) banned Federal Bank from issuing co-branded cards in March 2024.
The ban impacted customer acquisition for fintech firms such as Scapia and OneCard.Following last month's RBI nod, Federal Bank resumed co-branded card issuance, while Scapia had already restarted customer onboarding by late February.Solartech startup Aerem raises Rs 100 crore in round led by Japan-based UTEC: Blume Ventures-backed solartech startup Aerem has secured Rs 100 crore in a funding round led by Japan-based venture fund UTEC.
Snacking brand Sweet Karam Coffee raises $8 million from Peak XV Partners, Fireside Ventures: South Indian food brand Sweet Karam Coffee (SKC) has raised $8 million in Series A funding from Peak XV Partners and existing investor Fireside Ventures.Other Top Stories By Our Reporters 119961382Section 69A repository of power to block online content, X argues at HC: Social media platform, X argued on Thursday that information blocking orders, which remove its safe harbour protection, undermine the safeguards of another section of the Information Technology Act that serves as the repository of power for such actions.Securis Finance bags NBFC licence from RBI: Securis Finance, a subsidiary of FirstPay Technologies, received approval from the Reserve Bank of India (RBI) to function as a non-banking financial company (NBFC).
Lenskart founder Peyush Bansal tells brands to prioritise customer needs over expansion across channels: Consumer brands should prioritise addressing all customer needs rather than solely focusing on expanding across multiple channels, Bansal said on Thursday.India fastest-growing market for ChatGPT after surge in Ghibli-style art, says COO Brad Lightcap: India has emerged as the fastest-growing market for OpenAI’s ChatGPT, the company’s chief operating officer Brad Lightcap posted on X.Global Picks We Are Reading■ Samsung turns to China to prop up ailing chip business (FT) ■ Apple suppliers tumble as tariffs hit iPhone supply chain (Bloomberg) ■ Trump’s new tariff math looks a lot like ChatGPT’s (The Verge).
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India’s tariff silver lining; Krutrim’s hiring push

Happy Friday! High tariffs may reduce India’s electronics exports to the US, but its edge over China and Vietnam could drive growth. This and more in today’s ETtech Morning Dispatch.