The Observation Engine

India’s smartphone exports hit new highs in August 2025, surging 39% year-on-year to $1.53 billion , with shipments to the United States (its largest market) nearly tripling compared to last year. This boom marks India as the world’s third-largest mobile exporter , reaffirming the success of government policies and the growing appeal of “Made in India” electronics. Key Export Highlights Overall Exports: August 2025 exports rose from $1.09 billion (August 2024) to $1.53 billion. US Market: Shipments to the US rose from $388 million to $965 million. a 148% year-on-year jump . For April–August FY26, exports to the US reached $8.43 billion, comprising nearly 80% of FY25's full-year total. Long-Term Growth: In 2018, India exported just $0.2 billion in phones. By 2025, annual exports will have hit $24.1 billion , a 119-fold increase, putting India ahead of Vietnam in mobile phone exports. Major Drivers: Apple continues to lead, with Indian-assembled iPhone exports grow...

India’s software and IT exports are racing ahead overall, but the country’s top listed IT giants are losing ground in the export race. New data show a widening gulf between headline software export growth and the performance of established publicly listed firms, raising important questions for investors, policymakers, and the tech industry at large. The Numbers: The Export Race India’s software exports grew 12.7% in FY25 , reaching $180.6 billion, according to RBI data. Listed IT companies (the major players on the stock market) reported only 3.8% growth in foreign exchange revenues , totaling $69.6 billion, their lowest market share in 14 years. The share of listed IT firms in total software exports has shrunk from 55% in FY19 to 38.5% in FY25 , against a backdrop of accelerating growth from unlisted firms and Global Capability Centres (GCCs) of multinational corporations. What’s Fueling the Divergence? Rise of Unlisted Players & GCCs Unlisted Indian IT firms an...

AI data centres are quickly becoming one of the most important and expensive pieces of our digital future. Worldwide, around $3 trillion will be spent on AI-ready data centres between now and 2029, rivalling the value of the French economy. Why Are AI Data Centres Different? Specialised Hardware & Massive Power : AI is extremely power-hungry; one ChatGPT prompt uses 10x the electricity of a Google search. These centres rely on cabinets full of GPUs (like Nvidia chips), each costing around $4 million. AI data centres demand “hyperscale” or even “gigawatt” levels of electricity, enough to power entire cities. Extreme Density and Low Latency : Unlike regular centres (storing photos, emails, apps), AI centres must pack thousands of chips close together for “parallel processing.” Even a meter of extra distance slows down learning and response times; every nanosecond counts when training massive AI models. Network and Edge Demands : Data transfer speeds and hyper-fast internal...

India’s banks and lenders have gone digital, deploying AI-powered bots and virtual agents to track down loan defaulters, automate reminders, and dramatically improve debt recovery rates. This marks a major shift in how overdue loans are managed, impacting customers, lenders, and the entire financial ecosystem. What’s Changed? The Rise of AI Avatars Banks and NBFCs now use AI-generated avatars , often dressed smartly as lawyers, to make video calls or send personalized reminders to borrowers who have missed repayments. These bots interact with customers firmly but politely, nudging them to pay, without crossing lines sometimes breached by human agents. AI systems work around the clock, reaching more people much faster than humans. Where a traditional recovery agent managed about 250 cases/month, an AI agent can handle up to 5,000, at 40–60% lower costs. How Does AI Boost Recovery? Predictive Analytics: AI spots at-risk borrowers by analyzing payment, credit, and even b...

Housing sales in India’s top cities have dipped once again, marking the tenth straight quarterly decline . Analysts forecast a 4% year-on-year drop in sales for July–September 2025, driven by a complex mix of affordability issues, uneven regional demand, and broader economic pressures. The Numbers: Where Is the Impact Felt? Total Sales: Housing sales in the top 9 Indian cities fell to just above 1 lakh units in Q3 2025—a 4% YoY fall. Regional Disparity: The sharpest drops are seen in Maharashtra markets: Pune: 16% drop Mumbai, Navi Mumbai, Thane: 6%–28% drops Bright Spots: In contrast, cities like Bengaluru (+21%), Chennai (+16%), and Kolkata (+25%) saw sales rise, suggesting a more uneven but not universally negative scenario. Sequential Trends: Delhi-NCR saw the steepest quarterly fall (24%), while Bengaluru, Hyderabad, and Mumbai showed modest gains. What’s Fueling the Dip? Affordability Challenges: The average property price across top cities jum...

Today, President Trump signed a sweeping executive order imposing a $100,000 annual fee for each new H-1B visa application. This move could significantly alter the landscape of skilled immigration, the Indian IT sector, and global talent flow. Here's an in-depth look at the order, its context, and its far-reaching consequences. What Does the Executive Order Say? Effective September 21, 2025 , U.S. employers must pay $100,000 for every H-1B visa petition. The rule covers new entries and will last for at least 12 months unless extended. H-1B petitions not accompanied by this fee will be denied, locking out thousands of foreign workers unless companies are willing (and able) to pay the surcharge. U.S. agencies are ordered to close loopholes, such as arrivals on business (B-1/B-2) visas with plans to transition to H-1B jobs, making side-stepping the rule nearly impossible. Impact on the Indian IT Industry Short-Term Pain Immediate Cost Spike: Indian IT giants (TCS, In...

Micro-dramas, emotion-packed, snackable episodes under five minutes, are exploding in popularity across Asia and beginning to reshape media consumption in India and beyond. Micro-dramas are driving massive growth worldwide, but it's not just platforms or formats; it's the faces and creative teams behind them who are fueling this surge. What Are Micro-Dramas? These vertical, short-format shows feature quick, serialised storytelling with cliffhangers and recurring characters, all designed for mobile-first viewers who crave immersive but brief entertainment on the go. Typical episodes last between 90 seconds and five minutes, making them perfect for commutes or coffee breaks. Growth and Market Impact In China, micro-drama revenues are set to surpass $9.4 billion in 2025, overtaking the domestic box office, with more than 830 million regular viewers. Around 60% make in-app transactions, driving revenue through subscriptions, micro-payments, and advertising. India’s ...

  Meta has unveiled its most advanced smart glasses yet, the Meta Ray-Ban Display , at its Connect 2025 event. These AI-powered glasses feature a built-in color display in the right lens and introduce gesture-based controls via an innovative EMG “Neural Band” wristband. Key Features Heads-Up Display: A full-color, high-resolution screen sits in the right lens, showing notifications, messages, navigation, real-time translations, and Meta AI responses. The display is activated only when needed, keeping the classic sunglasses look. Gesture Controls: The included Meta Neural Band wristband reads subtle muscle signals from your hand, allowing you to scroll, select, and interact with the glasses through simple motions such as swiping, pinching, or rotating your wrist. AI-Powered: Users can ask Meta AI to assist, get information, preview photos, and more, all visible directly on the lens display. Camera and Audio: The glasses feature a 12MP camera for 3K video recording, ...

YouTube is rapidly expanding its suite of AI-powered tools, unveiling major upgrades aimed at supporting content creators, streamlining video production, and making Shorts more creative than ever. The annual “Made on YouTube” event showcased how Google’s latest generative AI, auto-dubbing, and creator-specific insights are shaping the future of the platform. Major AI Announcements Veo 3 for Shorts: Google DeepMind’s Veo 3 AI is now live in YouTube Shorts, allowing creators to generate video backgrounds and clips (with sound) from simple text prompts. New tools let users add motion, stylize scenes (e.g. pop art), and even insert objects or characters with a written description. Edit with AI: In the YouTube Create app, AI can now auto-select highlights, add transitions, generate music, and produce first-draft Shorts or videos, saving creators hours in the editing process. Speech to Song: Shorts creators can remix video dialogue into humorous or catchy soundtracks, opening up...

In 2025, e-commerce giants and emerging brands alike are investing heavily in content, turning shopping platforms into immersive, content-rich experiences that blend entertainment, shopping, and social interaction. Why Is Content So Important in E-Commerce? Gen Z Takes the Lead: According to research, nearly 90% of shopping decisions are influenced by social media content and creator recommendations. E-commerce platforms like Flipkart, Myntra, and Nykaa are creating original videos, tutorials, and influencer-led stories to attract and engage Gen Z shoppers. Conversion Power: Brands see up to 20% higher conversion rates among users who interact with content compared to those who do not. Compelling editorial and video content turns passive browsers into active buyers. Creator Economy Boom: India now has over two million content creators driving up to $400 billion in consumer spending, blurring the lines between creators, influencers, and direct sales. Key Content Strategi...

As a passionate cricket follower, the India-Pakistan match is always a festival, charged with emotion, history, and sheer anticipation. But this time, something felt different. Personally, I chose to refrain from watching the game. I joined many others in boycotting what felt less like a thrilling contest and more like a calculated business move. It was disappointing, and frankly, it felt like a betrayal not by the players on the field, but by the powers behind the scenes: the government and the BCCI. A Cheating Play? For many of us, the India-Pakistan cricket rivalry symbolizes more than just sport; it carries the weight of shared history, complex emotions, and unspoken hopes. It's a rare platform where millions across both countries find common ground, laughter, and competitive spirit. However, the recent decision to go ahead with the match despite heightened political tensions, public discontent, and calls for a boycott made it seem that money won over feelings. It was hard t...

  India has reinforced its position as the third-largest smartphone market globally in 2025, reporting robust growth in sales value and shipment volumes following a two-quarter slump. Major brands, aggressive new launches, and rising demand for premium devices have powered this upturn. Key Market Highlights Market Size and Growth: India’s smartphone industry shipped 70 million units in the first half (H1) of 2025, showing a 0.9% year-over-year growth. Shipments for Q2 alone rose by 7.3–8%, with 37 million units shipped. Value Share Rises: In value terms, India’s share of the global smartphone market rose from 7.7% last year to 7.9% in H1 2025. Premium Shift: The average selling price jumped 8% year-over-year as more consumers upgraded to premium phones. Ultra-premium models (above ₹45,000) saw a 37% growth, the fastest among all price segments. Export Boost: India became the third-largest smartphone exporter with $25 billion in shipments for FY25, only behind Chin...

Major automakers in India have announced significant price cuts on cars and two-wheelers, thanks to the implementation of revised GST 2.0 rates effective from September 22, 2025. This move comes just in time for the festive season, aiming to make vehicles more affordable and boost demand. Key Highlights Price Reductions Across Brands: Mahindra & Mahindra, Tata Motors, Toyota, Skoda, Hyundai, Renault, Honda, and luxury brands like Jaguar, Land Rover, Volvo, and Lexus have all slashed prices across various models. Range of Price Cuts: Discounts run from approximately ₹40,000 (Maruti Alto K10) up to ₹30.4 lakh (Jaguar Land Rover’s luxury line-up), depending on the model and manufacturer. GST Rate Changes: The GST rate on small cars and two-wheelers is now 18% (down from 28%), while larger vehicles and SUVs are taxed at a flat 40% (with removal of additional cess). Electric Vehicles: EVs remain attractively priced, retaining a low 5% GST rate. Luxury Segment: Luxu...

Microsoft and OpenAI have signed a non-binding memorandum of understanding (MOU) that paves the way for a significant restructuring of their partnership, as OpenAI seeks to transition into a for-profit entity and expand its future business. Key Points of the New Partnership From Nonprofit to For-Profit: OpenAI is moving toward a more traditional governance and fundraising model, with plans to go public in the future. Microsoft’s approval is crucial due to its prior investments and contract structure. Microsoft Remains a Key Partner: Microsoft has invested over $13 billion in OpenAI since 2019 and will continue to offer cloud support and infrastructure. However, Microsoft is also building its own AI models and exploring partnerships beyond OpenAI. Expanded Cloud Capacity: OpenAI can now engage additional partners, evidenced by its recent $300 billion data center deal with Oracle and a cloud partnership with Google, marking an end to Microsoft’s exclusive rights as OpenAI’s...

  Alterego, a startup founded by MIT Media Lab alum Arnav Kapur and neurotechnology exec Max Newlon, has unveiled Silent Sense , the world's first near-telepathic wearable device that aims to revolutionize communication between humans and machines, as well as person-to-person interactions. What is Silent Sense? The device detects faint neuromuscular signals sent by the brain to the speech system before actual words are spoken, allowing users to communicate silently but effectively. It promises to enable typing at the speed of thought , silent web browsing, real-time language translation , and private conversation without speaking a word. Importantly, Silent Sense does not read raw thoughts , easing privacy concerns. Demonstrated Capabilities The founder demonstrated typing reminders without a keyboard. Real-time, silent messaging between co-founders speaking different languages (English and Mandarin) showcased powerful translation abilities. The wearable can ...