The week in charts: Tariff troubles, IT growth, Ola job cuts

Tariff terror

Indian officials expressed optimism that the country might avoid the full impact of Trump's tariff threats, banking on the ongoing trade talks to address mutual concerns, Hindustan Times reported. Trump's 25% tariffs on imports from Mexico and Canada, along with new duties on Chinese goods, went into effect on Tuesday. Both Canada and China hit back with retaliatory tariffs against US exports. In his address to Congress on Wednesday, Trump reiterated his plan to impose reciprocal tariffs on all nations from 2 April. India’s trade surplus with the US has risen, leading to demands from the US for a more “balanced trade".

Dal diplomacy

India is considering duty-free imports of US pulses, particularly lentils and dry peas, via a proposed bilateral trade agreement, amid Trump’s 2 April deadline for reciprocal tariffs, Mint reported. A fixed-quantity, duty-free access for US lentils would favour the US, impacting imports of lentils from Canada, India’s top import source, with which relations remain strained. The share of US in India’s pulses imports has declined in the past decade from a high of 4.3% in 2016-17 to 1.4% in 2024-25.

Exit door

₹4,000-5,000 crore: That is the amount Piramal Enterprises Ltd is eyeing from selling its stakes in Shriram Group’s insurance ventures, Mint reported. The company has appointed Avendus and Arpwood Capital to find buyers for its 15% stake in Shriram General Insurance and 13.3% in Shriram Life Insurance. Following the 2010 sale of its pharmaceuticals division to Abbott Laboratories, Piramal invested in various Shriram Group companies over a decade ago. Shriram Capital's insurance ventures are a joint venture with South Africa’s Sanlam Group.

Also Read: As Trump tariffs target China and Canada, doors open for India

Growth chills

India's IT giants are staring at growth uncertainty as major bank clients delay their tech projects, Mint reported. This hesitation is driven by inflation concerns and potential trade tensions sparked by the latest US tariffs on goods from China and Mexico. At least two brokerages, including JM Financial Institutional Securities and Kotak Institutional Equities, have flagged these challenges. The big five IT firms, which generated $78.03 billion in revenue in 2024, derive up to 30% of their business from banking sector clients.

Divergent trends

India’s manufacturing Purchasing Managers' Index (PMI) eased to a 14-month low in February, while the services PMI picked up after slowing in January. Manufacturing PMI fell to 56.3 from 57.7 in January amid softer increase in new orders and production. Services PMI rose to 59 from 56.5 in January, on the back of a surge in new orders, driven by increased demand both domestically and internationally. Both numbers are printing above the 50-point threshold that distinguishes growth from contraction.

Brutal cuts

1,000: That is the number of jobs electric vehicle company Ola Electric Mobility is slashing to trim losses, media reports said. This is the second round of job cuts in the company within five months as it looks to boost operating margins. The restructuring includes eliminating regional warehouses, relying instead on its 4,000 nation-wide retail stores for inventory and deliveries, according to PTI. The cuts are likely across functions, including procurement, fulfilment, customer relations, and charging infrastructure. The company attributed the lay-offs to restructuring and automation of front-end operations.

Also Read: Indian economy weakens in January as passenger vehicle sales, PMI lose momentum, shows Mint tracker

Test drive

India's growing economy is seeing consumers shifting from two-wheelers to cars, with many choosing the second-hand market, a Mint analysis showed. The sales of second-hand cars have gradually increased over the years and are rising faster than that of new ones. The increasingly organized used-car market, featuring certified programmes and better financing, boosts accessibility for aspirational buyers. Belgium-based consultancy Arthur D. Little forecasts India's used-car market will more than double by 2028, surging from $34 billion to $80 billion.

Chart of the week: Digi-Leader

India was the eighth most ‘digitalized’ nation in 2024, ahead of developed nations such as The Netherlands and Australia, according to a new report by the Indian Council for Research on International Economic Relations. The report rated countries on the size of the digital economy as well as individual-level impact. India did well on the first metric, but on the second, it ranked 28th.

Also Read: Tata Motors’s split could shift its passenger-vehicles business into top gear

Follow our data stories on the“In Charts" and“Plain Facts" pages on the Mint website.