Introduction
Current Market News: Amazon, Google, India AI draws a portrait of a world economy on the move.
We begin with Amazon’s huge sweep against fake products, a huge story that affects e-commerce globally.
Next, we’ll look at Google’s $100 million payout, citing the legal struggles of tech giants. Finally, we’ll dive into India’s thriving AI industry, an essential sphere of expansion and innovation.
Amazon seize 15 million fake products globally in 2024
Amazon removed and destroyed more than 15 million fakes worldwide in 2024, stopping them from being resold or causing customer harm.
It spent more than $1 billion and hired thousands of professionals, including artificial intelligence experts, to fight counterfeits and fraud.
Proactive controls with AI disabled over 99% of suspected infringing listings before brands reported them.
While the availability of products has increased, legitimate infringement notices from brands have fallen by 35%.
The Counterfeit Crimes Unit of Amazon has gone after more than 24,000 counterfeiters by way of lawsuits and criminal referrals since 2020.
Its Transparency program validated more than 2.5 billion units of authentic products and onboarded 88,000 brands.
Google will pay $100 million to settle 14-year-old ad lawsuit
Google has agreed to pay $100 million to settle a class action case that accused the company of charging advertisers for clicks outside their targeted geographic areas.
The suit, which was initiated in 2011, claimed Google tricked advertisers into not receiving “Smart Pricing” discounts and breaking California’s Unfair Competition Law.
The agreement, subject to court approval, includes advertisers who utilized AdWords from June 1, 2009, through December 13, 2012.
Google spokesperson Jose Castaneda said the case was about old ad features and was pleased with the settlement.
It’s worth noting, in other market news, that Google is also battling a federal antitrust suit that would require it to divest Chrome, as well as a trial alleging that it monopolized ad technology.
IITs except record drop in placements
Placements for BTech students dropped in 22 out of 23 IITs in 2023-24 compared to 2021-22.
IIT (BHU) Varanasi was the only IIT where placements did not decline.
The drop mainly affected older and more prominent IITS.
Placement declines were seen across major IITs:
Madras down 12 points to 73.29%, Bombay down 13 to 83.39%, Kanpur down 11 to 82.48%, Delhi down 15 to 72.81%.
IIT Kharagpur saw a smaller decline, down 2.88 points to 83.91%.
Only IITs Jodhpur, Patna, and Goa recorded over 90% placements, with IIT Jodhpur at the highest (92.98%).
IIT Dharwad had the lowest placement rate at 65.56%.
14 IITs had more than 90% placements among students who appeared for jobs, with IIT Goa recording the highest at 98.65%.
Apart from IIT Tirupati, all IITs saw an increase in the number of students appearing for placements.
The decline was attributed to market conditions, higher education, and startup ventures.
Uday Kotak warn of deposit crunch in India banking
Uday Kotak has warned of a significant deposit crunch that threatens banks with margin erosion.
The growth of retail deposits is slowing, pushing banks to rely on expensive bulk deposits, which leads to negative lending margins, particularly in home loans.
Leading banks are currently accepting wholesale deposits at an interest rate of around 8%, resulting in a marginal deposit cost exceeding 9% due to additional expenses like cash reserve ratio (CRR) and statutory liquidity ratio (SLR).
Kotak highlighted that banks are offering home loans at a floating rate of 8.5% while borrowing at 9%, creating a negative spread of 0.5%. .
This situation, as pointed out in this important piece of market news, could have significant implications for the Indian banking sector.
Current account deficit widens to $11.5 Billion: RBI.
India’s current account deficit (CAD) widened to $11.5 billion (1.1% of GDP) in Q3 FY2025, up from $10.4 billion in the same quarter last year.
For April-December 2024, CAD increased to $37 billion (1.3% of GDP) from $30.6 billion (1.1% of GDP) a year ago, mainly due to a higher merchandise trade deficit.
The merchandise trade deficit rose to $79.2 billion in Q3 FY2025 from $71.6 billion a year earlier.
Net services receipts increased to $51.2 billion, driven by growth in business, computer, transportation, and travel services.
Personal transfer receipts, mainly remittances, rose to $35.1 billion from $30.6 billion in Q3 FY2024.
Foreign Exchange Reserves Decline Sharply in Q3 FY2025
Foreign direct investment saw a net outflow of $2.8 billion, compared to a net inflow of $4 billion a year ago.
In a sharp reversal, foreign portfolio investment saw a net outflow of $11.4 billion in Q3 FY2025, compared to an inflow of $12 billion in the same period last year.
External commercial borrowings (ECBs) had a net inflow of $4.3 billion, compared to a $2.7 billion outflow in the same quarter last year.
Non-resident deposits (NRI deposits) saw a net inflow of $3.1 billion, lower than $3.9 billion in Q3 FY2024.
India’s foreign exchange reserves fell by $37.7 billion in Q3 FY2025, in contrast to an accretion of $6 billion a year earlier.
“Energy is the next UPI for India”
Infosys chairman Nandan Nilekani envisions a decentralized energy future where small producers buy and sell power in a system akin to UPI.
He predicts households will generate and trade energy using rooftop solar and EV batteries, engaging in peer-to-peer transactions rather than relying solely on grid.
Unified Energy Interface (UEI), launched last year, is an early step toward streamlining energy transactions
He highlighted the need for regulatory reforms to simplify outdated laws that hinder energy innovation and formalization.
Nilekani believes this shift will create millions of energy entrepreneurs, transforming energy sector into distributed & resilient system.
Skye Air introduce 7-min drone service delivery in Bengaluru
Market News: Skye Air Expands Drone Delivery to Bengaluru
Skye Air has launched its ultra-fast drone delivery service in Bengaluru, making it the second Indian city after Gurugram to adopt advanced drone logistics.
The service will initially operate in the Konankunte and Kanakapura Road areas, enabling deliveries in as little as seven minutes.
The company aims to transform e-commerce and quick commerce with faster, more sustainable deliveries.
It currently serves clients such as Bluedart, DTDC, Shiprocket, and Ecom Express, with plans to expand into food delivery.
Skye Ship One, its flagship drone, can carry up to 10 kg per trip and operates at 120 metres above ground level in a designated air corridor.
It lowers packages to the ground via the Skye Winch system, ensuring precise and safe deliveries.
Market News: Skye Air Drone Deliveries Highlight Environmental and Logistical Impact
The company claims that each drone delivery saves 520 grams of carbon emissions, with potential CO2 savings of 3,100 metric tones annually across 100 routes, equivalent to planting 150,000 trees.
Founded in 2019, Skye Air has been expanding its drone logistics network, including deliveries in Gurugram’s housing societies and partnerships with e-commerce firms like Ship rocket and Shree Maruti Integrated Logistics.
The company has been actively involved in healthcare logistics, securing government tenders for medicine deliveries, including AIIMS locations in Rajkot and Bhubaneswar.
It has also conducted long-range deliveries, such as a 104 km flight in West Bengal for Flipkart Health+.