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Trade deal windfall for Indian IT; Trump's warning shot
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India's software exports are set to get a boost from the latest trade pact with the UK. This and more in today's ETtech Top 5.
Also in the letter:
■ Blinkit drives Eternal's Q1
■ Swiggy's board shakeup
■ Intel hits reset button
PM Narendra Modi with British PM Keir Starmer
India's IT services exports to the UK are projected to grow by 15–20% each year from the FY25 base of $32 billion, thanks to new tax and labour concessions under the India-UK trade pact.
Driving the news: In a significant win, Indian tech professionals will now be exempt from UK social security contributions for up to 36 months. This move, which effectively saves 20% of their salary, will benefit around 60,000 workers and generate over Rs 4,000 crore in corporate savings.
What they're saying: EY's Puneet Gupta called it a “game-changer” for short-term projects. Nasscom estimates Indian professionals have lost $1 billion globally due to dual social security taxes. The exemption fixes a long-standing fiction point.
Zoom out: Indian firms will also get a three-year waiver from the UK's Jobs Tax. Commerce minister Piyush Goyal said the agreement opens doors for IT, education, and services startups eyeing high-value UK clients.
The big picture: As US deal cycles slow, Europe is stepping up as a key demand driver. This UK carve-out sharpens the trend and signals India's intent to boost global mobility for its tech workforce.
Also Read: India-UK trade deal signals Modi's priorities as New Delhi eyes EU, US pacts
Just as India’s tech workforce gains global mobility wins in the UK, a harder message is emerging from the US.
What’s the matter: At an AI summit, President Donald Trump declared that the era of US tech firms manufacturing in China and hiring in India was “over.” He urged the companies to “go all-in for America,” accusing them of offshoring jobs while enjoying the benefits of American freedom.
The speech came days after the US released its AI Action Plan, which tightens export controls and backs local tech manufacturing.
Also Read: From tech podcasts to policy: Trump's new AI plan leans heavily on Silicon Valley industry ideas
Why it matters: The plan urges US allies to adopt similar curbs – or risk secondary tariffs. India isn't directly named, but may feel the heat if it doesn’t fall in line on AI policy and trade.
Expert take: Jameela Sahiba of The Dialogue said the move signals a tightening tech bloc, emphasising that India must navigate a diplomatic tightrope and balance its tech alliances. “This opens up opportunities, but also risks,” she noted.
Reality check: Despite the noise, US firms still depend heavily on Indian talent through GCCs. Futuresense’s Raghav Gupta warned that protectionism could backfire on American innovation.
Also Read: Multinationals set up GCCs in India to bypass AI talent war: FT report
Blinkit CEO Albinder Dhindsa
Quick commerce platform Blinkit was the standout performer for its parent company, Eternal, in Q1 FY26, with its pivot to an inventory-led model earning praise from analysts.
Catch up quick:
Margin play: Brokerages such as Jefferies and Nuvama see a 1% margin improvement (as a % of NOV) over the next 2–3 quarters. Kotak expects Blinkit to hit Ebitda breakeven by March 2026.
Why it matters: Switching to an inventory-driven model enhances return on cash employed and aligns Blinkit's accounting structure more closely with offline retailers like Dmart. However, this may reduce revenue recognition for Hyperpure, which previously managed Blinkit’s backend fulfilment.
What’s next: With quick commerce gaining momentum and food delivery showing signs of fatigue, Blinkit is set to shape Eternal's growth story through FY26, and possibly redefine its future.
Why it matters: ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and employees.
The opportunity:
What's next: Interested? Reach out to us at spotlightpartner@timesinternet.in to explore sponsorship opportunities.
Anand Daniel (left) and Sumer Juneja
Swiggy's board has seen a major reshuffle just months after the food and grocery delivery giant went public, with nominees of two heavyweight investors stepping aside.
Tell me more:
Who’s on board: The current line-up includes chairperson and non-executive independent director Anand Kripalu, Swiggy CEO and MD Sriharsha Majety, cofounder Nandan Reddy, and independent directors Shailesh Haribhakti, Suparna Mitra and Faraz Khalid. Also on the board are Roger Clarks Rabalias, representing Prosus, and Ashutosh Sharma from MIH Internet India.
Introductions: Khalid is the CEO of the Middle East-based ecommerce, quick commerce, and food delivery platform Noon, and previously co-founded the online fashion store Namshi.
Significance: Swiggy said the appointment reflects its shift to a more independent governance structure. “With his (Khalid's) joining our board, our independent directors (led by our Chairperson) represent four pillars of strategic governance,” CEO Majety said in a statement.
Intel CEO Lip-Bu Tan
Intel plans to shrink its global headcount to 75,000 by the end of the year – a sharp 31% drop from 2023 – as it battles mounting losses and resets its global strategy.
The details: The chipmaker has already laid off 15,000 employees and is scaling back factory projects in Germany, Poland, and Ohio (United States). It is also shutting down operations in Costa Rica and shifting work to lower-cost locations in Vietnam and Malaysia.
Why it matters: The cuts reflect deeper challenges in the global semiconductor race, where cost pressures, geopolitical headwinds, and AI investments are reshaping the game. Intel's big bet on foundry services is still in early innings, and these moves suggest the turnaround is far from complete.
The company posted a $2.9 billion loss in Q2, mainly due to restructuring charges, even as revenue edged past expectations at $12.9 billion.
CEO speak: “We are making hard but necessary decisions,” CEO Lip-Bu Tan wrote to employees, vowing to boost efficiency and accountability.
Another quarterly loss is expected. The real test is whether this reset unlocks the firepower needed to catch up with rivals Nvidia, AMD, and TSMC.
Zomato's parent, Eternal, led the IPO gains significantly, according to data from exchanges. The share price of the restaurant aggregator and quick delivery platform has risen by 309% from its IPO price of Rs 76 when it listed in July 2021.
Travel platform Ixigo's parent, LeTravenues Technology, is a distant second, but still with a substantial 135% increase over its issue price.
Ola Electric and Paytm are the laggards on our list, trading 46% and 50% below their respective prices.
Also in the letter:
■ Blinkit drives Eternal's Q1
■ Swiggy's board shakeup
■ Intel hits reset button
India-UK deal gives IT exports and workers a boost
India's IT services exports to the UK are projected to grow by 15–20% each year from the FY25 base of $32 billion, thanks to new tax and labour concessions under the India-UK trade pact.
Driving the news: In a significant win, Indian tech professionals will now be exempt from UK social security contributions for up to 36 months. This move, which effectively saves 20% of their salary, will benefit around 60,000 workers and generate over Rs 4,000 crore in corporate savings.
What they're saying: EY's Puneet Gupta called it a “game-changer” for short-term projects. Nasscom estimates Indian professionals have lost $1 billion globally due to dual social security taxes. The exemption fixes a long-standing fiction point.
Zoom out: Indian firms will also get a three-year waiver from the UK's Jobs Tax. Commerce minister Piyush Goyal said the agreement opens doors for IT, education, and services startups eyeing high-value UK clients.
The big picture: As US deal cycles slow, Europe is stepping up as a key demand driver. This UK carve-out sharpens the trend and signals India's intent to boost global mobility for its tech workforce.
Also Read: India-UK trade deal signals Modi's priorities as New Delhi eyes EU, US pacts
Trump warns US tech firms: No more factories in China, jobs in India
Just as India’s tech workforce gains global mobility wins in the UK, a harder message is emerging from the US.
What’s the matter: At an AI summit, President Donald Trump declared that the era of US tech firms manufacturing in China and hiring in India was “over.” He urged the companies to “go all-in for America,” accusing them of offshoring jobs while enjoying the benefits of American freedom.
The speech came days after the US released its AI Action Plan, which tightens export controls and backs local tech manufacturing.
Also Read: From tech podcasts to policy: Trump's new AI plan leans heavily on Silicon Valley industry ideas
Why it matters: The plan urges US allies to adopt similar curbs – or risk secondary tariffs. India isn't directly named, but may feel the heat if it doesn’t fall in line on AI policy and trade.
Expert take: Jameela Sahiba of The Dialogue said the move signals a tightening tech bloc, emphasising that India must navigate a diplomatic tightrope and balance its tech alliances. “This opens up opportunities, but also risks,” she noted.
Reality check: Despite the noise, US firms still depend heavily on Indian talent through GCCs. Futuresense’s Raghav Gupta warned that protectionism could backfire on American innovation.
Also Read: Multinationals set up GCCs in India to bypass AI talent war: FT report
Blinkit drives Eternal's Q1; margin outlook improves with inventory shift
Quick commerce platform Blinkit was the standout performer for its parent company, Eternal, in Q1 FY26, with its pivot to an inventory-led model earning praise from analysts.
Catch up quick:
- Gross order value jumped 140% year-on-year to Rs 11,821 crore.
- Net order value (NOV) touched Rs 9,203 crore, overtaking Eternal's food delivery business for the first time.
- The company added 243 dark stores in Q1 and aims to reach 3,000 by 2026.
Margin play: Brokerages such as Jefferies and Nuvama see a 1% margin improvement (as a % of NOV) over the next 2–3 quarters. Kotak expects Blinkit to hit Ebitda breakeven by March 2026.
Why it matters: Switching to an inventory-driven model enhances return on cash employed and aligns Blinkit's accounting structure more closely with offline retailers like Dmart. However, this may reduce revenue recognition for Hyperpure, which previously managed Blinkit’s backend fulfilment.
What’s next: With quick commerce gaining momentum and food delivery showing signs of fatigue, Blinkit is set to shape Eternal's growth story through FY26, and possibly redefine its future.
Sponsor ETtech Top 5 & Morning Dispatch!
Why it matters: ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and employees.
The opportunity:
- Reach a highly engaged audience of decision-makers.
- Boost your brand's visibility among the tech-savvy community.
- Custom sponsorship options to align with your brand's goals.
What's next: Interested? Reach out to us at spotlightpartner@timesinternet.in to explore sponsorship opportunities.
Shake-up at Swiggy board; SoftBank, Accel nominees step down
Swiggy's board has seen a major reshuffle just months after the food and grocery delivery giant went public, with nominees of two heavyweight investors stepping aside.
Tell me more:
- SoftBank's Sumer Juneja and Accel's Anand Daniel have resigned from the board, according to a recent regulatory filing.
- Both cited pressing professional commitments as the reason for their exits.
- In their place, Swiggy has added Faraz Khalid as an independent director, the fourth such addition to its board.
Who’s on board: The current line-up includes chairperson and non-executive independent director Anand Kripalu, Swiggy CEO and MD Sriharsha Majety, cofounder Nandan Reddy, and independent directors Shailesh Haribhakti, Suparna Mitra and Faraz Khalid. Also on the board are Roger Clarks Rabalias, representing Prosus, and Ashutosh Sharma from MIH Internet India.
Introductions: Khalid is the CEO of the Middle East-based ecommerce, quick commerce, and food delivery platform Noon, and previously co-founded the online fashion store Namshi.
Significance: Swiggy said the appointment reflects its shift to a more independent governance structure. “With his (Khalid's) joining our board, our independent directors (led by our Chairperson) represent four pillars of strategic governance,” CEO Majety said in a statement.
Intel to cut 31% of workforce, cancels factory plans amid deep losses
Intel plans to shrink its global headcount to 75,000 by the end of the year – a sharp 31% drop from 2023 – as it battles mounting losses and resets its global strategy.
The details: The chipmaker has already laid off 15,000 employees and is scaling back factory projects in Germany, Poland, and Ohio (United States). It is also shutting down operations in Costa Rica and shifting work to lower-cost locations in Vietnam and Malaysia.
Why it matters: The cuts reflect deeper challenges in the global semiconductor race, where cost pressures, geopolitical headwinds, and AI investments are reshaping the game. Intel's big bet on foundry services is still in early innings, and these moves suggest the turnaround is far from complete.
The company posted a $2.9 billion loss in Q2, mainly due to restructuring charges, even as revenue edged past expectations at $12.9 billion.
CEO speak: “We are making hard but necessary decisions,” CEO Lip-Bu Tan wrote to employees, vowing to boost efficiency and accountability.
Another quarterly loss is expected. The real test is whether this reset unlocks the firepower needed to catch up with rivals Nvidia, AMD, and TSMC.
Chart-ed: IPO winners and losers
Zomato's parent, Eternal, led the IPO gains significantly, according to data from exchanges. The share price of the restaurant aggregator and quick delivery platform has risen by 309% from its IPO price of Rs 76 when it listed in July 2021.
Travel platform Ixigo's parent, LeTravenues Technology, is a distant second, but still with a substantial 135% increase over its issue price.
Ola Electric and Paytm are the laggards on our list, trading 46% and 50% below their respective prices.
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