Morning Brief: Alphabet To Move Pixel Production From Vietnam To India; Govt Evaluates Methodologies Of Global Ranking Indices; Core Sector Growth Slows To Four-Year Low; And More

Alphabet To Move Pixel Production From Vietnam To India

Alphabet Inc has begun talks with Indian contract manufacturers Dixon Technologies and Taiwan's Foxconn to shift a portion of global Google Pixel smartphone production from Vietnam to India, especially for devices headed to the US. This move comes amid US tariff threats on Vietnam, prompting Alphabet to accelerate its de-risking strategy.

The company has also discussed localising components like chargers, batteries, and fingerprint sensors to reduce import dependence. Pixel production in India, currently limited to local demand, may be expanded for export to the US, where tariffs on Vietnamese goods are significantly higher than those on Indian products.

With ongoing US-India trade talks and a goal to double bilateral trade to $500 billion by 2030, Alphabet is looking to scale up Indian exports.

India Evaluates Methodologies Of Global Ranking Indices

India is scrutinising the methodologies of 28 global indices, including the Democracy Index, Global Hunger Index, and Network Readiness Index, to assess potential flaws in how these rankings are determined, ET has reported.

The government is reviewing sample sizes, scoring models, and overall frameworks used in these international comparisons. The government has raised concerns particularly with the Global Hunger Index, calling its methodology flawed.

Preliminary findings have pointed to issues with scoring systems, and the government has already shared its inputs with other departments. This review aligns with earlier papers by the Prime Minister’s Economic Advisory Council, which criticised perception-based indices for misrepresenting India’s progress despite economic growth.

Core Sector Growth Slows To Four-Year Low

Core sector growth rose to 3.8 per cent in March, slightly higher than February’s 3.4 per cent, driven by a sharp rise in electricity output due to an early onset of summer. Electricity, which accounts for nearly a fifth of the index, grew 6.2 per cent, aided by soaring demand during widespread heatwaves.

However, sectoral performance was mixed, with crude oil contracting 1.9 per cent and natural gas output falling 12.7 per cent—its ninth straight month of decline. Cement output grew modestly but remained the only sector with double-digit expansion at 11.6 per cent, while steel rose 7.1 per cent, supported by year-end government spending and a rise in private investment.

Despite the monthly uptick, overall core sector growth slowed to 4.4 per cent in FY25, the weakest in four years, with broad-based deceleration across most segments.

Other Developments

PLI Scheme Attracts Global Laptop Makers To India

India's Rs 17,000 crore Production-Linked Incentive (PLI) scheme for IT hardware is gaining momentum, with brands previously reliant on China now partnering with local manufacturers to produce laptops in India. The push comes amid the US-China trade war and fears of future tariffs on Chinese imports, prompting companies to seek cost-effective alternatives in India.

Local manufacturers are ramping up production, offering global brands tariff benefits and the chance to meet local content requirements for government tenders.

Companies like Asus, Syrma SGS, and Dixon Technologies are investing in Indian facilities to assemble and manufacture laptops, with Dixon set to produce for major brands like HP, Lenovo, and Asus. The PLI 2.0 scheme, launched in 2023, aims to boost local production, generate jobs, and create a competitive IT hardware ecosystem in India.

Putin Proposes Direct Peace Talks With Ukraine

For the first time since his invasion of Ukraine, Russian President Vladimir Putin has suggested holding direct peace talks with Kiev, signalling a potential shift in tone. Ukrainian President Volodymyr Zelenskiy responded cautiously, emphasising Ukraine's openness to discussions aimed at halting attacks on civilian targets.

Although a 30-hour Easter truce was declared, both sides accused each other of violations, and fighting resumed shortly after.

The renewed diplomatic push comes amid growing pressure from the US, which has warned it may pull back from peace efforts if no progress is made. Despite major disagreements over Russia's demands, including territorial concessions and neutrality, both sides have shown tentative openness to further peace talks.

US Stocks And Dollar Dive As Trump Attacks Fed Chair

US President Donald Trump escalated his attacks on Federal Reserve Chairman Jerome Powell, calling him "a major loser" for not lowering interest rates to help boost the economy.

Trump demanded that Powell take preemptive action, claiming the Fed chair had been too slow to respond to economic developments, which could lead to a slowing economy. This latest round of criticism coincides with a significant downturn in the stock market, with the S&P 500, Dow Jones, and Nasdaq all seeing considerable losses this year.

Despite the traditionally safe status of the dollar and U.S. government bonds during economic instability, both have been negatively impacted, with the dollar index hitting its lowest point since 2022. Meanwhile, gold prices surged to new highs as investors flocked to safer assets amidst the market turmoil.

From The States

Karnataka: Missing Caste Census Report Sparks Political Row

The disappearance of the original caste census report prepared by the Kantharaj Commission in Karnataka has led to a political uproar, with opposition parties criticising the Congress government for basing decisions on a revised report drawn from sample data. The revised report, submitted by the Backward Classes Commission in 2023, was created after the original data could not be located.

Opposition leaders have called for an investigation, questioning the credibility of the entire exercise. Despite the controversy, the Karnataka government has defended the revised report, while experts warn against relying on sample-based surveys for policy decisions.

Maharashtra: Ajit And Sharad Pawar Meet Amid Political Buzz

Speculation is rife in political circles after the uncle-nephew duo of NCP chief Sharad Pawar and Deputy Chief Minister Ajit Pawar met for the second time in 15 days, following recent discussions of cousins Uddhav and Raj Thackeray joining forces. The meeting took place at the Vasantdada Institute, where Sharad Pawar is the founder and Ajit Pawar serves as a trustee.

Ajit Pawar downplayed the meeting's political significance, describing it as part of their duties with various institutes, including discussing AI applications for agriculture. NCP (SP) MP Supriya Sule expressed that everyone should come together for Maharashtra's interest, especially after Ajit Pawar's departure from the party in 2022.

Tamil Nadu: Governor's VC Meet Could Escalate Battle With DMK

Tamil Nadu Governor R. N. Ravi's plan to convene a three-day Vice-Chancellor conference in Ooty from 25-27 April has raised concerns among BJP allies and NDA parties. The timing of the conference, coming shortly after the Supreme Court's ruling against Governors sitting on bills, is seen as a potential challenge to the state government's authority, particularly concerning amendments on vice-chancellor appointments.

Critics argue that the Governor’s actions may play into the hands of the DMK’s federalist campaign, causing political friction in the state. The move has been criticized by various parties, including the Left, and is seen as a violation of the Supreme Court's verdict and constitutional norms.