Wrench in India’s gadget exports; OpenAI’s eye on India

Happy Friday! Growth in India’s electronics exports faces tariff threats from the US, its largest commerce associate. This and extra in at the moment’s ETtech Morning Dispatch.

Also within the letter:
■ RIL carried out with Dunzo
■ New takers for Zepto
■ More questions on DPDP Act

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US tariffs may rain on India’s electronics exports parade

India’s electronics exports are flying. Shipments surged 47% year-on-year within the April-June quarter, and all indicators level to momentum holding. But a looming menace may spoil the get together: recent US tariffs.

Number-wise:

• Electronics exports hit $12.4 million (Rs 1.09 lakh crore) final quarter.
• At this tempo, exports may cross $46–50 billion by March 2026.
• Mobile telephones are the star act, contributing 70% of complete electronics exports.
• Half of those exports head to the US, which has now slapped a steep 50% tariff, among the many highest on India.

Driving the information: Apple and different companies ramped up exports within the June quarter, racing to beat the tariff deadline. The outcome: cell phone shipments soared 55% year-on-year to round $7.6 billion.

Looking inwards: India should double down on constructing its personal electronics ecosystem, mentioned Pankaj Mohindroo, chairman of the India Cellular and Electronics Association (ICEA).

“Other product segments, like solar modules, networking equipment, chargers and components, are gaining traction”, he mentioned. “We must now accelerate their expansion. We need IT hardware, wearables, hearables and consumer electronics exports to rise sharply”.

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OpenAI to carry extra merchandise to India, make them inexpensive: Sam Altman

Sam Altman, CEO, OpenAI

The “incredibly fast-growing” India could quickly overtake the US as OpenAI’s largest market, in response to cofounder Sam Altman.

Quote, unquote: “We are especially focused on bringing products to India, working with local partners to make AI work great for India, (making) it more affordable for people across the country,” Altman mentioned on the sidelines of the launch of ChatGPT-5.

AI-led layoffs? On issues about job losses amongst software program engineers because of GenAI’s coding capabilities, Altman pushed again, saying there’s “no evidence” to assist that.

• Even as tech corporations across the globe are restructuring their workforce with the altering paradigm, Altman mentioned, “the world wants way more software.”
• OpenAI’s instruments, he added, are designed to spice up productiveness and cut back growth prices slightly than exchange engineers.

Also Read: TCS layoffs: Job cuts due to skill mismatch, not AI automation, says CEO K Krithivasan

ChatGPT-5 arrives as AI race heats up

OpenAI lastly unveiled ChatGPT-5, its most superior mannequin but, promising deeper capabilities amid rising competitors within the AI area.

Miles to go: However, Altman admitted that regardless of PhD-expert stage reasoning, the mannequin falls wanting true synthetic basic intelligence (AGI)

“This (ChatGPT-5) is not a model that continuously learns as it is deployed from new things it finds, which is something that, to me, feels like it should be part of an AGI,” Altman mentioned.

Also Read: ChatGPT-5 launch: Altman felt ‘useless’ testing AI, compares its impact to the Manhattan project

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Reliance writes off $200 million funding in Dunzo

Kabeer Biswas, cofounder, Dunzo and Mukesh Ambani, chairman, Reliance Industries

Reliance Industries has written off its entire investment in hyperlocal supply startup Dunzo, in response to its FY25 annual report. The conglomerate had led a $240-million (around Rs 1,800 crore) round in Dunzo in January 2022 through Reliance Retail, choosing up a 26% stake.

Value timeline:

• FY2023: Reliance Retail invests Rs 1,800 crore in Dunzo.
• FY2024: Stake worth drops to Rs 1,645 crore.
• FY2025: Entire quantity written off.

Dunzo’s downfall:

• Reliance’s wager on Dunzo was meant to spice up its play within the booming fast commerce market.
• But the startup couldn’t preserve tempo with deep-pocketed rivals.
• Its speedy supply section, Dunzo Daily, proved expensive, ballooning month-to-month bills with out bringing in sustainable returns.
• By 2024, Dunzo had pulled again operations, wound down a lot of its fast commerce and courier choices, and resorted to repeated layoffs in a bid to preserve money.

Also Read: Dunzo’s demise: How the Reliance-backed hyperlocal delivery startup unravelled

Leadership exit:

Also Read: Inside Reliance Retail’s reboot to 30-minute quick commerce

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MapmyIndia to choose Rs 25 crore stake in Zepto

Aadit Palicha, CEO, Zepto

Digital mapping agency MapmyIndia is about to acquire a small stake in fast commerce unicorn Zepto, which is making an attempt to chop international shareholding within the run-up to going public.

Tell me extra:

• The deal provides MaymyIndia 0.049% fairness in Zepto for Rs 25 crore.
• It is a secondary transaction, just like a latest one involving Elcid Investments.
• Both offers peg Zepto’s valuation at Rs 51,000 crore.

In the previous:

But why? The intention is to spice up Indian possession in Zepto and streamline its cap desk earlier than submitting for an IPO.

Also Read: Zepto enters pharmacy delivery with 10-minute promise

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Other Top Stories By Our Reporters

Another trade physique seeks exemption from DPDP Act: The Internet and Mobile Association of India (IAMAI) has approached India’s IT ministry to seek an exemption for data fiduciaries from the Digital Personal Data Protection (DPDP) Act provisions associated to processing private information, as an interim measure.

Leadership change at Icertis: Software-as-a-service firm Icertis cofounder Samir Bodas is stepping down as the CEO and can tackle the position of govt chairman, whereas COO Anand Subbaraman is being promoted to CEO at a time when AI is disrupting the SaaS enterprise.

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Global Picks We Are Reading

■ Google vs. Perplexity struggle performs out in India as AI battle intensifies (Rest of World)

■ Inside the US authorities’s unpublished report on AI security (Wired)

■ Microsoft is cautiously onboarding Grok 4 following Hitler issues (The Verge)