1) Scarce garment labours may impact Walmart's shift to India: Report
Walmart and Costco's strategic shift to India, aimed at leveraging lower U.S. tariffs compared to competitors like Bangladesh and China, faces a significant operational challenge: a critical scarcity of skilled garment labor. Despite India's advantageous tariff structure – with a projected 26% tariff on Indian apparel versus 37% on Bangladesh, 46% on Vietnam, and a substantial 145% on China – the Indian textile sector, particularly in key production hubs like Tiruppur, is experiencing a severe labor crunch. This human capital deficit is directly impacting manufacturing capacity and hindering the realization of India's potential for increased apparel exports, valued at $16 billion annually.
The core issue stems from high labor turnover and a preference among workers for informal sector units that offer more flexible hours and potentially higher short-term remuneration. Large-scale manufacturers struggle to retain trained personnel due to the stringent cost and worker condition requirements imposed by foreign clients. This creates a bottleneck in scaling production, as evidenced by idle sewing lines in factories. The Apparel Export Promotion Council highlights that Indian factories typically employ 600-800 workers, significantly less than Bangladesh's average of 1,200, indicating a lack of economies of scale.
This labor shortage presents a substantial risk to Walmart and Costco's supply chain optimization strategies. While the tariff arbitrage provides a compelling business case for sourcing from India, the operational inefficiencies caused by the limited labor pool could undermine cost advantages and lead to potential disruptions in inventory management and delivery timelines. To mitigate this, Indian garment manufacturers require significant investment in workforce development and retention programs, alongside policy support to enhance formal sector attractiveness and address the fundamental challenges in labor availability and skill development.
2) Panasonic to lay off 5,000 employees in Japan and 5000 from rest of the world.
Panasonic Holdings is undertaking a significant corporate restructuring, announcing plans to lay off 10,000 employees globally by March 2026. This headcount reduction, representing approximately 4% of its worldwide workforce of around 230,000, will be evenly split with 5,000 job cuts in Japan and 5,000 overseas. The rationale behind this strategic workforce optimization is to enhance profitability and streamline operational efficiency amidst a challenging competitive landscape and declining performance in key consumer electronics segments.
The layoffs, primarily targeting sales and indirect departments, are a direct response to pressures such as a sluggish consumer electronics market, intense competition from Chinese rivals like Haier and Midea in products like TVs, refrigerators, and microwaves, and shrinking margins. Panasonic aims to achieve a profit increase of $1 billion by March 2027 and $2.1 billion by March 2029, anticipating restructuring costs of approximately $896 million. This move also aligns with a broader industry trend of large tech and industrial conglomerates undergoing similar workforce realignments to adapt to evolving market dynamics.
Panasonic's CEO, Yuki Kusumi, emphasized the necessity of these job cuts to achieve superior performance compared to industry peers, acknowledging the company's exceptionally high selling, general, and administrative expenses ratio. The restructuring plan also involves consolidating indirect functions, optimizing IT investments, and potentially exiting loss-making business units to refocus resources on high-growth areas such as electric vehicle batteries and artificial intelligence. This aggressive initiative reflects a concerted effort to recalibrate Panasonic's fixed-cost structure and secure its long-term financial viability in a rapidly changing global economy.
3) By 2030, India's pickleball industry is projected to surpass ?7.500 cr.
India's burgeoning pickleball industry is projected to achieve a significant market valuation, surpassing ?7,500 crore (approximately $900 million USD) by 2030. This impressive growth trajectory is underpinned by a confluence of factors, including the sport's low entry barrier in terms of learnability and cost-effectiveness. With estimated active players reaching 60,000 by late 2024, and a potential to hit 1 million by 2028, the demand for infrastructure is skyrocketing; the number of operational courts surged from around 200 in early 2024 to over 1,200 currently, with 3-4 new courts added weekly across major metropolitan areas like Mumbai, Bengaluru, and Delhi.
The financial viability of pickleball facilities is a key driver for investment. Setting up a pickleball court typically costs between ?3-5 lakhs, significantly less than a badminton court (?15 lakhs), allowing for rapid return on investment, sometimes within three months in high-demand cities. This favorable unit economics is attracting entrepreneurs and venture capitalists, with startups like Goodland Pickleball securing funding. The sport's appeal spans all age groups, providing a less physically demanding yet socially engaging alternative to traditional racquet sports, making it ideal for residential societies, clubs, and fitness centers.
Despite its rapid adoption, the industry faces challenges in attracting large-scale corporate sponsorships, with advertisers remaining cautious due to the sport's nascent mainstream appeal. However, initiatives like the World Pickleball League (WPBL) and endorsements from celebrities and sports icons are boosting visibility and credibility. To sustain this momentum and achieve the projected market size, continued infrastructure development, formalized league structures, and strategic marketing efforts will be crucial for pickleball to transition from a fast-growing recreational activity to a commercially robust professional sport in India.
4) India has imposed an anti-dumping duty of up to $664 per tonne on imports of a certain type of solar glass from China and Vietnam for five years.
India has implemented an anti-dumping duty of up to $664 per tonne on imports of "Textured Toughened (Tempered) Coated and Uncoated Glass," commonly known as solar glass, from China and Vietnam. This five-year duty, effective from December 4, 2024, aims to counter the predatory pricing strategies of these nations, which were found to be selling solar glass at below normal value, causing "material injury" to domestic manufacturers. The Directorate General of Trade Remedies (DGTR) initiated this measure following a complaint from Borosil Renewables Ltd, a key domestic producer, highlighting a significant surge in dumped imports, which increased from 29,980 MT in 2020-21 to 779,017 MT during the investigation period.
The imposed duty, ranging between $570 and $664 per tonne, is structured as a reference price mechanism: duties will be levied only if the landed value of imports falls below a set reference price. This protective measure is designed to level the playing field for Indian manufacturers, who have faced price suppression and a decline in market share due to the influx of cheap foreign products. While aligning with WTO regulations, this move signifies India's commitment to fostering a robust domestic solar manufacturing ecosystem and reducing reliance on imports, which is crucial for achieving its ambitious renewable energy targets.
However, the imposition of this anti-dumping duty carries potential implications for the broader solar energy value chain. Industry experts anticipate a possible increase of 3-5% in solar module prices, as solar glass constitutes a significant portion of module costs (8-12%). This could lead to higher project costs and potential delays for solar developers, impacting the internal rate of return (IRR) of projects. While the long-term objective is to promote self-reliance and stabilize the market, the short-term challenge for project developers will be to absorb these increased input costs without compromising the affordability of solar power.
5) Indore has been declared India's first beggar-free city after rehabilitating around 5,000 beggars.
Indore has achieved a remarkable social milestone, being declared India's first beggar-free city after successfully rehabilitating approximately 5,000 individuals through a comprehensive campaign initiated in February 2024. This multi-phase strategy, recognized by the Union Ministry of Social Justice and Empowerment and a World Bank team, prioritized rehabilitation over punitive measures. The initiative involved extensive awareness drives, identification of beggars—including about 500 children—and providing tailored support such as employment opportunities for adults and school enrollment for children.
The success of Indore's "Bhikshuk Mukt Shehar" (Beggar-Free City) initiative stems from a collaborative approach, engaging the Women and Child Development Department and involving NGOs. Furthermore, the city implemented a ban on both begging and giving alms, with legal actions taken against violators. To foster community participation, a reward system of ?1,000 was introduced for citizens providing actionable information about begging activities, which has proven effective in maintaining the city's new status.
This strategic social intervention highlights a robust model for urban governance and human capital development. By addressing the root causes of beggary through skill development, educational access, and reintegration into the workforce, Indore has not only improved the quality of life for thousands but also demonstrated a scalable framework for other urban centers. This initiative serves as a blueprint for the Union Ministry's pilot project to eliminate begging in 10 other Indian cities, potentially leading to a broader national impact on poverty alleviation and social inclusion.
6) OpenAl to buy Al coding startup Windsurf for ?25,280 crore.
OpenAI is reportedly in the process of acquiring Windsurf, an AI-powered coding assistant startup formerly known as Codeium, in a landmark deal valued at approximately $3 billion, which translates to over ?25,280 crore. This acquisition would mark OpenAI's largest to date, signaling a strategic intensification of its presence in the rapidly expanding market for AI-driven developer tools. Windsurf specializes in integrated development environments (IDEs) and offers sophisticated features such as real-time code suggestions, multi-file editing, and agentic AI capabilities designed to streamline the entire software development workflow, enhancing productivity for developers.
The strategic rationale behind this high-value acquisition is multi-faceted. It aims to bolster OpenAI's existing coding capabilities within products like ChatGPT and its Codex model, enabling it to compete more effectively against rivals such as Microsoft's GitHub Copilot, Amazon CodeWhisperer, and other emerging players in the AI coding assistant landscape. Windsurf's proprietary LLM and its focus on an "agentic IDE" that integrates AI assistance seamlessly into developers' workflows, as well as its "Cascade" and "Flows" features, are key assets that OpenAI seeks to leverage to accelerate its product roadmap and potentially establish a more comprehensive AI development ecosystem.
While the deal has not yet formally closed, it has garnered significant attention, especially as Windsurf was simultaneously in discussions to raise funding at a similar $3 billion valuation. This acquisition underscores a broader trend of consolidation in the AI sector, where major foundational AI companies are acquiring specialized startups to gain a competitive edge and expand their service offerings. The integration of Windsurf's technology could significantly enhance OpenAI's ability to drive innovation in software engineering, potentially leading to more advanced "AI-native" development processes and strengthening its market position as a leading AI provider.
7) Berkshire Hathaway loses $59 bn in m-cap over Warren's plan to step down.
A seismic shift in leadership at Berkshire Hathaway, announced during its annual meeting on May 3, 2025, saw the conglomerate's market capitalization plummet by approximately $59 billion. This significant downturn, reflecting over a 5% drop in shares, immediately followed Warren Buffett's declaration of his intent to step down as CEO by year-end, concluding a remarkable six-decade tenure. While Buffett, at 94, cited age-related factors such as memory lapses and physical slowing, his decision, though not entirely unexpected given Greg Abel's designated succession in 2021, triggered immediate market volatility due to the Oracle of Omaha's unparalleled influence and track record.
The investor community's reaction underscores the profound impact of key person risk, particularly in organizations heavily identified with a single visionary leader. Despite Berkshire's robust $1.1 trillion valuation, diverse portfolio spanning insurance, railroads, and consumer goods, and a formidable cash pile of nearly $350 billion, the market's response demonstrates concerns over the future capital allocation strategies and investment acumen without Buffett at the helm. Investors will keenly observe how Greg Abel, the designated successor, navigates these challenges, especially given the current economic climate marked by inflationary pressures and geopolitical uncertainties.
However, the transition plan includes strategic measures to mitigate this perceived leadership gap. Buffett will remain as Chairman of the Board, offering continuity and guidance during critical market junctures. Furthermore, he explicitly stated his intention to retain all his Berkshire shares, signaling confidence in Abel's future stewardship. This structured succession, while initially causing a market adjustment, aims to ensure the long-term stability and continued adherence to Berkshire's core investment philosophy of value-driven, long-term ownership, even as it enters a new era of leadership.
8) Trump's push for drug self-reliance puts pressure on Indian pharma.
Donald Trump's renewed emphasis on drug self-reliance and "America First" policies is poised to exert significant pressure on India's pharmaceutical industry, a critical global supplier of generic medicines. Recent executive orders, particularly the "Most Favored Nation" pricing rule, aim to drastically lower U.S. drug prices by mandating alignment with the lowest international benchmarks. While primarily targeting high-cost innovator drugs, this policy could create a ripple effect, potentially forcing Indian generic drug manufacturers to re-evaluate their pricing strategies to maintain profit margins, especially since India supplies over 40% of the generic medications utilized in the U.S.
The potential for increased tariffs on imported pharmaceuticals and incentives for reshoring manufacturing to the U.S., as proposed by initiatives like the PILLS Act, poses a direct threat to India's long-held cost arbitrage. Indian companies, some of which derive over 40% of their revenue from the U.S. market, operate on thin margins in the generic segment. Consequently, any imposition of tariffs or stricter regulatory scrutiny on foreign facilities could lead to reduced export demand and necessitate a strategic pivot towards higher-margin segments like biosimilars and complex generics, or even an increase in domestic drug prices to offset export market pressures.
To navigate this evolving trade landscape, Indian pharmaceutical firms must enhance their supply chain resilience, diversify export markets beyond the U.S. (e.g., Europe, Africa, Latin America), and strategically invest in advanced R&D and manufacturing technologies, including AI, to improve efficiency and reduce costs. The long-term implications underscore the need for Indian policymakers to engage in proactive dialogue with U.S. regulators and safeguard India's intellectual property rights regime to prevent an erosion of its competitive edge and ensure continued access to affordable medicines globally.
9) Pak's GDP went from being 143% of Maharashtra's GDP in FY05 to 69% of its GDP in FY24.
In a stark illustration of diverging economic trajectories, Pakistan's Gross Domestic Product (GDP) has significantly underperformed compared to India's state of Maharashtra over the past two decades. In fiscal year 2005, Pakistan's GDP stood at $132 billion, representing a substantial 143% of Maharashtra's then-$92 billion GDP. However, by fiscal year 2024, Pakistan's GDP only reached an estimated $338 billion, a mere 69% of Maharashtra's impressive $490 billion economy. This economic divergence underscores a critical shift in regional power dynamics and economic performance.
This sharp contrast is largely attributed to Maharashtra's robust economic growth, driven by rapid industrialization, a thriving services sector, and consistent foreign direct investment. As India's financial capital, Mumbai, located in Maharashtra, has attracted substantial capital inflows and fostered a diversified economy. In contrast, Pakistan's economy has been plagued by a confluence of challenges, including persistent political instability, high inflation, and a reliance on external bailouts—receiving its 24th IMF loan since 1958. Furthermore, significant resource allocation towards defense, consuming nearly 2% of its GDP for FY25, has arguably constrained investments in productive sectors.
The widening gap highlights critical differences in economic management and development priorities. While Maharashtra has capitalized on its strong infrastructure, skilled workforce, and business-friendly policies to attract investment and foster innovation, Pakistan has struggled with low productivity, poor governance, and a challenging business environment. This economic chasm serves as a compelling case study in comparative economic development, emphasizing the importance of sustainable policy frameworks, political stability, and strategic resource allocation for long-term national prosperity and competitive advantage.
10) Unemployment rate for lndians aged between 15-29 years hits 13.8% in April: Govt
India's youth unemployment rate, specifically for individuals aged between 15 and 29 years, reached a significant 13.8% in April 2025, as revealed by the government's inaugural monthly Periodic Labour Force Survey (PLFS). This critical data, released by the Ministry of Statistics and Programme Implementation (MoSPI), marks a significant shift towards real-time labor market monitoring, moving away from previous quarterly and annual reporting cycles. The overall national unemployment rate for all age groups stood at 5.1% in April, with urban areas experiencing a higher youth joblessness rate of 17.2% compared to 12.3% in rural regions.
This high youth unemployment rate underscores a substantial challenge in human capital utilization and economic productivity. For young women aged 15-29, the situation is particularly concerning, with a national unemployment rate of 14.4%, escalating to 23.7% in urban areas. This disparity highlights systemic issues within the labor market, such as skills mismatch, insufficient job creation in the formal sector, and gender-based barriers to employment. Such figures can have long-term implications for economic growth and social stability, potentially leading to a demographic dividend turning into a demographic burden if not addressed.
The government's new monthly data release, based on the Current Weekly Status (CWS) approach, provides granular insights crucial for timely policy interventions. While the data offers a more immediate snapshot of the employment landscape, it also emphasizes the urgent need for strategic workforce development programs, investment in job-creating sectors, and initiatives to enhance employability among the youth. Addressing this challenge effectively will require a concerted effort from both public and private sectors to align educational outcomes with industry demands and foster an inclusive job market.
11) Mark Zuckerberg to donate 90% of wealth to Chan - Zuckerberg Initiative.
Mark Zuckerberg, co-founder of Meta Platforms, along with his wife Priscilla Chan, has pledged to donate 99% of their Facebook (now Meta) shares to the Chan Zuckerberg Initiative (CZI) during their lifetimes. This ambitious philanthropic commitment, initially announced in December 2015 upon the birth of their daughter Max, was recently lauded by Bill Gates, who highlighted Zuckerberg as a key figure in the next generation of philanthropists. At the time of the initial pledge, the value of the shares amounted to approximately $45 billion, with the total commitment estimated to be over 90% of their overall wealth, making it one of the largest philanthropic endeavors in history.
The Chan Zuckerberg Initiative operates as a Limited Liability Company (LLC) rather than a traditional non-profit, providing it with greater flexibility in its investments, including the ability to engage in both grant-making and for-profit investments to achieve its goals. CZI's core focus areas are broadly defined as science, education, and justice & opportunity. In science, the initiative is particularly focused on "curing, preventing, or managing all diseases by the end of this century," investing heavily in biomedical research, building advanced scientific tools, and leveraging AI to accelerate discoveries in biology and health.
In education, CZI supports personalized learning and initiatives aimed at providing equitable access to quality education. Historically, it also engaged in social advocacy, including housing affordability and criminal justice reform, though it has recently shifted its primary focus to science, winding down some social advocacy programs. This strategic resource allocation underscores a deliberate effort to maximize impact by concentrating on areas where scientific and technological advancements can yield transformative societal benefits, reflecting a long-term vision for human potential and equality.
12) UK reduces post-study work period from 24 months to 18 months for international students.
The United Kingdom government has announced a significant reduction in the post-study work period for international students, shortening the Graduate Route visa from the current two years to 18 months for those completing bachelor's and master's degrees, effective from 2025. This policy adjustment, outlined in the May 2025 Immigration White Paper, is part of a broader strategy to curb net migration and prioritize domestic workforce development. While PhD graduates will still be eligible for a three-year post-study work visa, the change is set to impact the attractiveness of the UK as a study destination for a vast majority of international students, particularly those from countries like India who constituted a significant portion of recent Graduate Route visa holders.
This move is driven by government concerns over the integrity of the student visa system, with observations of increased asylum claims from former student visa holders and a perception that a substantial portion of Graduate Route visa holders are not transitioning into graduate-level employment. The government aims to encourage genuine students to enter the UK and to ensure that those who stay contribute meaningfully to the economy, potentially through a faster transition to the Skilled Worker visa route. Additionally, the new policies include stricter compliance requirements for educational institutions, raising standards for visa refusal rates, course enrolment, and completion rates.
However, the reduction in post-study work opportunities poses considerable challenges for international students and UK universities alike. For students, it shortens the window to secure graduate-level employment and gain valuable work experience, potentially impacting their return on investment from a UK education. Universities, on the other hand, express concerns about potential declines in international student enrollment and revenue, given the significant economic contribution of foreign students (estimated at over £40 billion annually). This policy shift reflects a strategic trade-off between immigration control objectives and the economic and reputational benefits derived from a robust international student cohort.
13) 8,000 flat registries in Greater Noida stalled due to ?400 cr dues by builders.
Approximately 8,000 homebuyers in Greater Noida are facing significant distress as the registration of their flats remains stalled across nine housing projects. This protracted delay stems primarily from developers' outstanding dues exceeding ?400 crore to the Uttar Pradesh State Industrial Development Authority (UPSIDA), compounded by legal disputes over construction permissions and historical confusion regarding Floor Area Ratio (FAR) norms. While land for these projects was allotted between 2007 and 2011, a subsequent increase in FAR in 2013 led developers to revise plans, which were later contested by some UPSIDA officials, creating a stalemate that impacted completion certificates and property registrations.
The impact on homebuyers is severe, as they are unable to gain legal ownership of their properties, preventing sale, mortgage, or inheritance. Many families are already residing in these units without formal registry, exposing them to legal and financial risks. While a recent resolution by the UPSIDA board ratifying the 3.5 FAR norm has initiated the registration process for some projects like Migsun Green Mansion and E Homes, thousands remain in limbo. For instance, projects by Cosmos Infraestate and La Galaxia are still held up due to uncleared dues and incomplete documentation, despite significant construction progress in some cases.
The broader implications for the real estate market in Greater Noida highlight critical issues in regulatory oversight and builder accountability. The Uttar Pradesh government's December 2023 policy, offering penal interest waivers and requiring 25% upfront payment of dues to kickstart registrations, has seen limited adoption by developers. Authorities are now contemplating stricter measures, including canceling allotments and attaching properties, to recover dues. This situation underscores the need for robust regulatory frameworks, transparent compliance mechanisms, and proactive dispute resolution to safeguard consumer interests and ensure the timely delivery of real estate projects.
14) Trump proposes 5% tax on remittances, desi diaspora to take $1.6 bn hit.
Donald Trump's proposed "One Big Beautiful Bill Act" includes a provision for a 5% tax on all international money transfers made by non-U.S. citizens, directly impacting the Indian diaspora and other immigrant communities. This significant financial levy, if enacted, is projected to cost the Indian community in the U.S. approximately $1.6 billion annually, assuming current remittance volumes remain constant. The tax would be deducted at the point of transfer by service providers, with no minimum threshold, meaning even small remittances would be subject to the deduction.
This policy aims to fund Trump's immigration agenda, including border wall construction and increased deportation efforts. For the Indian diaspora, comprising around 4.5 million individuals in the U.S. (including H-1B visa holders and green card holders), this tax represents a direct increase in the cost of supporting families back home or making investments in India. With the U.S. being the largest source of remittances to India, contributing nearly $32 billion out of India's total $118.7 billion in 2023-24, the tax could lead to a significant reduction in foreign currency inflows.
Beyond the direct financial burden, the proposed tax carries broader economic and social implications. Experts from the Global Trade Research Initiative (GTRI) warn that a 10-15% drop in remittance flows could result in a $12-18 billion shortfall for India annually, impacting household consumption, rural economies, and potentially causing currency devaluation. This non-refundable tax disproportionately affects vulnerable populations who rely on these transfers for basic necessities, raising concerns about its alignment with global development goals and potentially pushing remittances towards informal channels, undermining financial transparency.
15) Moody’s downgrades US credit ratings from Aaa to Aa1.
In a significant development for global financial markets, Moody's Ratings has downgraded the United States government's long-term issuer and senior unsecured ratings from the coveted Aaa to Aa1, with the outlook changed to stable from negative. This decisive action, announced on Friday, May 16, 2025, makes Moody's the last of the three major credit rating agencies to strip the U.S. of its top-tier rating, following Standard & Poor's in 2011 and Fitch Ratings in 2023. The downgrade primarily reflects concerns over the sustained increase in government debt and interest payment ratios, which have reached levels significantly higher than similarly rated sovereigns over the past decade.
The rationale behind Moody's decision centers on a projected widening of federal deficits, expected to reach nearly 9% of GDP by 2035, up from 6.4% in 2024. This trajectory is driven by rising interest payments on the escalating national debt, increasing entitlement spending, and relatively low revenue generation, exacerbated by the potential extension of 2017 tax cuts which could add an estimated $4 trillion to the federal primary deficit over the next decade. Moody's highlighted the failure of successive U.S. administrations and Congress to implement measures that would reverse the trend of large annual fiscal deficits and growing interest costs.
The implications of this downgrade for the U.S. economy and global financial stability are noteworthy. While the immediate market reaction was somewhat muted, the downgrade could lead to higher borrowing costs for the U.S. government, potentially translating to increased interest rates for consumers on mortgages and other loans. This could also prompt a re-evaluation of U.S. Treasury assets by global investors, impacting the dollar's role as a reserve currency. Despite these concerns, Moody's acknowledged the U.S.'s exceptional credit strengths, including the size and dynamism of its economy and the dollar's global reserve currency status, which underpin the stable outlook.