In today’s briefing:
- Ohayo Japan | Limited Retaliation to U.S. Strikes
- After India’s Crackdowns, Chinese Phone Brands Outsource More Manufacturing to Locals
- RBI’s Relief Push: How Easier Infra & Realty Credit Norms Could Impact Banks & NBFCs
- #165 India Insights: India’s Clean Power Surge, $2T Growth Outlook, Tata Consumer Bets on AI
- Chinese Biotech Innovators Push Overseas as Sector Faces Reckoning
Ohayo Japan | Limited Retaliation to U.S. Strikes
- Iran’s missile attack on a U.S. base in Qatar, intercepted without casualties, led investors to downplay risks to oil supply. West Texas Intermediate crude fell over 7%
- Renesas Electronics anticipates a 250 billion yen loss for January-June 2025 due to the deteriorating performance of its U.S. partner, Wolfspeed
- Yakult faces shareholder proposals from Dalton Investments, endorsed by Glass Lewis, for a 100 billion yen share buyback
After India’s Crackdowns, Chinese Phone Brands Outsource More Manufacturing to Locals
- Chinese smartphone-makers are increasingly outsourcing production to Indian contract manufacturers to avoid running afoul of regulators in the South Asian country as it aims to become a global manufacturing hub, an industry analyst said.
- As of the first quarter of this year, Chinese smartphone-makers had handed over about 66% of assembly work to manufacturing partners that are involved in New Delhi’s Production-Linked Incentive (PLI) scheme, said Prachir Singh, a senior analyst at Counterpoint Research.
- Launched in 2020, the PLI scheme is a strategic initiative designed to bolster domestic manufacturing and reduce dependence on imports.
RBI’s Relief Push: How Easier Infra & Realty Credit Norms Could Impact Banks & NBFCs
- RBI finalized new provisioning norms for project finance (effective October 1, 2025), significantly softening earlier proposals. Provisioning for under-construction projects has been cut to 1–1.25% (from the proposed 5%).
- The change reduces capital strain for lenders, preserves profitability metrics, and encourages fresh credit flow to infrastructure and commercial real estate (CRE) sectors.
- Lenders must maintain or improve RoA/RoE while passing on marginal provisioning costs to borrowers. The credit environment for real estate and infrastructure segments could strengthen materially in FY26 and beyond
#165 India Insights: India’s Clean Power Surge, $2T Growth Outlook, Tata Consumer Bets on AI
- India ranks third globally in power generation growth, with 83% of investment in clean energy and strong foreign interest driven by supportive government policies.
- McKinsey projects India could unlock USD 2 trillion across 18 high-growth sectors by 2030, potentially contributing 30 percent to incremental GDP by 2040.
- Tata Consumer Products (TATACONS IN) is embedding AI across operations to drive speed, precision, and hyper personalised engagement, signaling a bold digital pivot to redefine its FMCG growth trajectory.
Chinese Biotech Innovators Push Overseas as Sector Faces Reckoning
- After years of falling valuations and stalled IPO activity, China’s innovative drug industry is showing early signs of a comeback.
- A spate of large-scale cross-border licensing deals is rekindling global interest and lifting stock prices, suggesting a possible shift in momentum for the sector.
- Yet despite headline-grabbing transactions and the buoyant market response, industry veterans warn the rebound may be selective, with persistent challenges still clouding the sector’s long-term outlook.
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