Author: Sreelatha M

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Technology

Apple acquires Israeli AI start‑up Q.AI for $2 bn

Apple Inc. has acquired Israeli artificial intelligence start‑up Q.AI in a deal valued at around $2 billion, marking one of the company’s largest acquisitions in recent years.

Founded in 2022, Q.AI specializes in advanced machine-learning technology capable of interpreting facial micro‑movements and silent speech, allowing devices to understand user intentions without spoken commands. The start-up has a team of roughly 100 employees, who will join Apple following the acquisition.

The deal signals Apple’s ambition to strengthen its capabilities in wearable devices and AI-powered interfaces. Analysts expect the technology could be integrated into products such as AirPods, smart glasses, or Apple’s Vision Pro headsets, enabling more intuitive ways for users to interact with devices.

Apple has faced increasing competition from tech rivals including Meta, Google, and OpenAI in the AI space, particularly in voice assistants and mixed-reality devices. Industry experts say this acquisition shows Apple’s determination to catch up in AI innovation and enhance its on-device intelligence.

The Q.AI acquisition is second only to Apple’s 2014 purchase of Beats in terms of scale and reflects the tech giant’s broader strategy to invest in next-generation AI technologies that transform user interaction.

Also Read: Defence budget nears 2% of GDP, gets ₹7.85 lakh cr

Categories
Leaders

FedEx CEO warns of global trade shift

FedEx Chief Executive Officer Raj Subramaniam says the world is entering a new phase of global trade as rising tariffs and geopolitical tensions redraw long-established shipping routes. Rather than calling it the end of globalization, Subramaniam describes the shift as “re-globalization,” where trade flows are being reorganised across regions.

The comments come as FedEx faces growing pressure from higher US import tariffs, especially those imposed on Chinese goods. New levies announced by the US government have increased the overall tariff burden on imports, disrupting cross-border trade volumes and raising costs for global businesses. These developments have had a direct impact on logistics companies like FedEx, whose business depends heavily on smooth international trade.

Following the tariff announcements, FedEx shares fell sharply, reflecting investor concerns about slower global shipments and rising operational costs. The company has since warned that tariffs could reduce its operating profit by around $1 billion in the current financial year. However, FedEx has taken steps to cushion the impact by redesigning its network and shifting capacity to faster-growing trade lanes.

Subramaniam noted that traditional trade routes, particularly between China and the United States, are weakening. At the same time, China’s trade with other parts of Asia, Latin America, and emerging markets is expanding. This realignment, he said, is forcing logistics companies to become more flexible and region-focused rather than relying on one dominant global supply chain

“The world is changing, and trade is changing with it,” Subramaniam said, adding that companies must learn to operate in a less predictable but still deeply connected global economy.

FedEx is responding by cutting costs, streamlining operations, and investing in technology to better track and manage complex trade movements. The company is also adapting its air and ground networks to reflect changing demand patterns across regions.

Taking over from founder Fred Smith, Subramaniam acknowledged that volatility is now a permanent feature of global trade. While tariffs and policy changes may continue to create uncertainty, he said FedEx is focused on resilience and long-term adaptation rather than short-term disruption.

Categories
Beyond

India offers tax-free AI cloud incentive until 2047

The Union Budget 2026–27 unveiled a major tax incentive to attract foreign cloud providers and AI firms to India. Under the new policy, companies operating AI and cloud services from Indian data centres will pay zero corporate tax on revenues until 2047, provided they serve Indian customers through a locally incorporated reseller.

The government has also introduced a 15% safe-harbour tax regime for Indian data centre operators serving foreign clients. This ensures predictability for investors and encourages long-term infrastructure expansion. The measures are aimed at strengthening India’s digital backbone, boosting cloud and AI capacities, and making the country a global hub for advanced computing services.

Industry leaders have welcomed the move as a significant step to attract multinational technology firms to set up or expand data centre operations in India. Analysts predict that the policy could generate thousands of jobs, enhance technology transfer, and position India competitively against established AI and cloud markets in the US, Europe, and Asia.

However, experts have also flagged potential challenges, including ensuring sufficient power and water supply, handling cooling requirements, and streamlining regulatory approvals. The government will need to address these infrastructure and operational hurdles to make the policy fully effective.

By offering a 21-year tax holiday, India aims to provide certainty and long-term incentives for global firms to invest in local infrastructure, secure local market participation, and establish a durable technological presence.

This initiative is part of a broader push to expand India’s digital ecosystem, encourage private investment in data centres, and foster growth in emerging technologies such as AI, cloud computing, and machine learning.

Also Read: Oracle plans massive layoffs through AI funding crunch

 

Categories
Beyond

New Income Tax law from April to ease compliance

Income Tax Act, 2025, a comprehensive rewrite of the country’s six-decade-old tax law, will come into force on April 1, 2026, Finance Minister Nirmala Sitharaman announced in the Union Budget 2026–27. This legislation replaces the Income Tax Act, 1961, marking one of the most significant updates to India’s direct tax system in decades.

The new law is designed to simplify the tax system and reduce confusion for taxpayers, rather than alter existing tax rates. Individuals and businesses will continue under the same tax slabs and rates as before. The government says the overhaul will cut complexity, reduce litigation, and make tax compliance more intuitive. The Act uses clearer language, fewer provisions, and simpler processes to reduce ambiguity and make it easier for taxpayers to understand their obligations.

As part of the reforms, authorities will introduce updated tax forms and clear guidance ahead of implementation, allowing taxpayers to adjust to the changes smoothly. One major administrative change is the extension of deadlines for filing or revising Income Tax Returns (ITRs). The revision deadline has been moved from December 31 to March 31, with a small fee for late revisions, and different types of returns will have staggered filing timelines to ease the compliance burden.

Other taxpayer-friendly measures include lower Tax Collected at Source (TCS) rates for overseas education and travel-related payments, as well as simplified Tax Deducted at Source (TDS) procedures, particularly for smaller taxpayers and non-resident property transactions.

Also Read: Union Budget has growth, health, defence priorities

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Beyond

Union Budget has growth, health, defence priorities

Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 in Parliament on 1 February 2026, laying out a roadmap for economic growth, job creation, healthcare improvement, defence self-reliance, and tax simplification. The Budget seeks to maintain fiscal discipline while supporting investment-led development across key sectors of the economy.

At the macroeconomic level, the government has set the fiscal deficit target at 4.3% of GDP, reflecting its commitment to gradual fiscal consolidation. Total expenditure has been increased, with a strong focus on capital spending, which has been raised to a record ₹12.2 lakh crore, signalling a continued emphasis on infrastructure development and long-term productivity.

Infrastructure remains a central pillar of the Budget. The government announced the creation of seven high-speed rail corridors connecting major urban and industrial hubs to improve connectivity and reduce travel time. A new Dedicated Freight Corridor from Dankuni to Surat is expected to enhance cargo movement, making trade faster and more cost-efficient. The development of 20 National Waterways aims to expand inland shipping and reduce the environmental impact of transport, while urban metro networks, road projects, and multimodal transport hubs will enhance last-mile connectivity. These investments are expected to generate employment and boost the efficiency of supply chains across the country.

The Union Budget also places strong emphasis on manufacturing and strategic industries. The India Semiconductor Mission 2.0 was announced to expand domestic chip manufacturing, research, and design capabilities, supporting India’s push for technological self-reliance. To reduce dependence on imports, Rare Earth Corridors will be developed in mineral-rich states, supporting clean energy, electronics, and defence industries. Additionally, the ₹10,000 crore Biopharma Shakti initiative seeks to position India as a global hub for biopharmaceuticals, with investments in vaccine production, biologics, and essential medicines. Measures to modernize textiles, container manufacturing, industrial parks, and promote startups are expected to generate employment and enhance exports.

Healthcare and social development received significant attention in the Budget. Expansion of cancer care infrastructure and early detection programmes was announced to improve access to treatment. Mental health services will be strengthened through district-level facilities, integration into primary healthcare, and expanded counselling and emergency support. The Budget also proposes the establishment of three new All India Institutes of Ayurveda to promote research, education, and the global outreach of AYUSH. Additional support has been allocated to public hospitals, life-saving medicines, and emergency care facilities, reflecting a comprehensive approach to health and wellness.

Defence and national security continue to be priorities. The Budget allocates higher funding for domestic defence manufacturing, research and exports under the ‘Make in India’ framework. Development of defence corridors and public-private partnerships is expected to reduce import dependence and strengthen India’s strategic autonomy.

The government has also taken measures to support farmers, rural communities, and MSMEs. Initiatives to improve productivity, promote high-value crops, strengthen fisheries, and enhance irrigation have been outlined, along with the use of digital platforms to improve access to markets and credit for farmers. MSMEs and startups are set to benefit from a proposed ₹10,000 crore Growth Fund, simplified compliance processes, and easier access to credit.

On the taxation front, the Budget introduces relief and simplification. A new Income Tax Act, effective from April 2026, will streamline forms and filing processes. Deadlines for revised returns have been extended, and penalties for minor defaults reduced. TCS rates on overseas education, medical treatment, and foreign travel have been lowered to 2%, while the Minimum Alternate Tax for companies has been cut to 14%. Tax incentives have also been provided to foreign cloud service providers operating from Indian data centres to attract investment in the digital economy.

The Union Budget 2026–27 seeks to balance fiscal prudence with growth-oriented reforms, focusing on infrastructure, manufacturing, healthcare, defence, rural development, and tax simplification.

Also Read: Sensex up over 100 points, Nifty above 24,800

Categories
Beyond

US offers Venezuelan oil as India cuts Russia

The United States has approached India with a proposal to explore crude oil imports from Venezuela as New Delhi steadily cuts back on purchases from Russia, sources said. The move comes amid changing global energy flows, rising geopolitical pressures and India’s ongoing efforts to diversify its oil supply basket.

India significantly increased Russian oil imports after the Ukraine war in 2022, taking advantage of lower prices. At one point, Russian crude accounted for nearly 40% of India’s total oil imports, with volumes touching around 1.2 million barrels per day (bpd). However, this trend is now reversing. Imports from Russia are expected to decline to about 1 million bpd in February and further to nearly 800,000 bpd by March 2026. Officials indicate that volumes could fall even further in the coming months.

The U.S. outreach is closely linked to trade and tariff concerns. Washington has imposed higher tariffs on countries importing Venezuelan oil, while also tightening trade measures on nations continuing large purchases of Russian crude. India has been among the countries affected by these tariff actions. By proposing Venezuelan oil as an alternative, the U.S. is seeking to reduce India’s reliance on Russian supplies while reshaping energy partnerships.

The offer also reflects a shift in Washington’s approach towards Venezuela following recent political developments there. The U.S. has indicated that Indian refiners could resume buying Venezuelan crude, which had largely stopped in recent years due to sanctions and payment challenges. Venezuelan oil, known for its heavy grade, is suitable for several Indian refineries configured to process such crude.

It is still unclear whether supplies would come directly from Venezuela’s state-run oil company PDVSA or through global commodity traders. Indian refiners are evaluating options based on pricing, logistics and long-term supply stability.

Meanwhile, India has already begun broadening its crude sourcing strategy. As Russian imports decline, refiners have increased purchases from the Middle East, Africa and South America. Recent data show Russian oil shipments to India have dropped to their lowest level in nearly two years, while the share of OPEC crude in India’s overall imports has risen sharply.

The petroleum ministry has reiterated that India’s primary focus remains energy security and affordability. Officials stress that sourcing decisions are driven by commercial considerations and global market conditions.

Also Read: Google India profit ₹1,437 cr as revenue falls 3.2%

Categories
Beyond

Rupee up 9 paise after record low ₹92

The Indian rupee recovered slightly on Friday after falling to its weakest level in history against the US dollar. It gained 9 paise to trade around ₹91.90 per dollar, supported by a decline in global crude oil prices, which eased some pressure on India’s import bill.

Earlier in the session, the rupee touched an all-time low of ₹92.02 per dollar. Traders said the intraday rebound was due to lower crude and commodity prices, which reduced immediate demand for dollars from importers. By the close of the day, the rupee settled near ₹91.97–₹91.93, showing a modest recovery.

Despite the short-term gains, the currency remains under pressure. The US dollar remains strong, and foreign portfolio investors (FPIs) continue to withdraw money from Indian equities, keeping overall market sentiment cautious. Analysts said sustained capital outflows and corporate demand for dollars are key reasons behind the rupee’s weakness.

January has been particularly challenging for the currency, with the rupee falling more than 2%, marking its worst monthly performance in over three years. The Reserve Bank of India (RBI) has intervened at times to prevent further sharp declines and curb volatility.

Market watchers are now looking ahead to the upcoming Union Budget, which could influence investor sentiment and currency trends. While falling oil prices provide some relief, experts say the rupee’s trajectory will largely depend on foreign investment flows and the global dollar trend in the coming weeks.

Also Read: Dixon Technologies rallies 5% after Q3 profit jump

Categories
Beyond

Economic Survey 2026 flags skill gaps, structural risks

The Economic Survey 2026, presented in Parliament ahead of the Union Budget 2026–27, offers a detailed assessment of India’s economic performance over the past year and outlines key challenges for the period ahead. The Survey indicates that the economy remains resilient, supported by strong domestic demand, steady investment, and controlled inflation, even as global uncertainties continue.

India has maintained growth faster than most major economies, driven largely by consumer spending and sustained investment across sectors. Economists note that the economy has stayed on a stable path despite geopolitical tensions, weaker global trade, and financial volatility in several regions.

A major highlight of the Survey is the sharp fall in inflation, which has declined to very low levels. Lower price pressures have helped improve household purchasing power and supported consumption. This positions India favourably at a time when many economies are still grappling with high inflation.

Prime Minister Narendra Modi said the Survey reflects India’s economic progress despite a challenging global environment. He highlighted strong fundamentals such as infrastructure development, innovation, and entrepreneurship as key drivers of long-term growth.

The Survey also draws attention to structural challenges, particularly in the labour market. The Chief Economic Adviser (CEA) has flagged significant skill gaps and structural risks emerging in the AI-driven economy. Limited access to formal vocational training and slow skill adaptation could constrain job creation and productivity if not addressed in time. The Survey stresses the need to align education and skilling systems with evolving industry and technology requirements.

Manufacturing growth and the creation of skilled employment are identified as crucial for sustaining high growth rates alongside the expanding services sector. Strengthening industrial capacity and improving workforce readiness are seen as essential policy priorities.

Overall, the Economic Survey paints a picture of a stable and resilient economy, underpinned by low inflation, strong domestic demand, and investment momentum. At the same time, it underlines the urgency of tackling skills shortages and preparing the workforce for technological change.

The Survey sets the analytical backdrop for the Finance Minister’s Budget 2026–27, helping policymakers, businesses, and investors evaluate both economic strengths and emerging risks before new policy measures and spending proposals are announced.

Also Read: Venezuela opens oil sector to foreign firms

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1 Minute-Read

eClerx Q3 profit up 51%, 1:1 bonus approved

eClerx Services Ltd posted strong results for the quarter ended December 31, 2025. Standalone net sales rose 20.9% year-on-year to ₹736.10 crore, while standalone net profit surged 51.4% YoY.

Consolidated revenue also grew robustly, crossing ₹1,070 crore, with net profit up significantly compared to last year. The company’s board approved a 1:1 bonus equity share issue, giving shareholders one extra share for every share held, subject to regulatory approval.

Shares of eClerx jumped following the earnings report and the shareholder-friendly bonus announcement, reflecting investor optimism on the company’s performance and growth outlook.

Categories
Corporate

Coking Coal made Critical Mineral, shares jump 5%

The government has classified coking coal as a critical mineral under the Mines and Minerals (Development and Regulation) Act, highlighting its strategic importance for the steel industry.

The move is expected to simplify approvals for mining and exploration, encourage domestic production, and reduce the country’s heavy reliance on imports, which currently meet about 95% of demand.

Following the announcement, Bharat Coking Coal (BCCL) shares rose nearly 5%, while Coal India gained around 3%, reflecting investor optimism about the policy’s impact on the steel supply chain.