TICE Dispatch: DPIIT’s Startup Push, Trade Talks Progress, Markets Turn Cautious

India’s business and innovation landscape continues to navigate a fascinating mix of structural reforms, sectoral momentum and financial market signals. From regulatory tweaks in the digital sphere to key trade negotiations, bond markets, startup funding trends and government-backed support for entrepreneurs, today’s dispatch sketches a broad yet connected view of where things are moving.

Top Stories of the Day

Department for Promotion of Industry and Internal Trade (DPIIT) inks MoUs with Kotak Mahindra Bank & Primus Partners to support startups

DPIIT on Thursday announced two separate memoranda of understanding: one with Kotak Mahindra Bank and one with Primus Partners. Under the Kotak deal, startups recognised by DPIIT will gain access to zero-balance current accounts, tailored working-capital and term-loan structures, API-based banking platforms, digital payment solutions and startup-cards. The pact with Primus Partners centres on capacity-building programmes, expert mentorship, market-access initiatives and policy awareness drives targeting early- and growth-stage product-startups. The government statement noted these collaborations aim to strengthen both financial and non-financial support for India’s startup ecosystem.

India-US trade talks make progress towards first-phase deal

Officials from India and the United States have said that negotiations on a proposed bilateral trade agreement are advancing, with the hope of concluding a first tranche by year-end. While key sticking points remain — including duties, market access and broader geopolitical sensitivities — both sides appear committed to pushing forward. India views the deal as central to its strategy to deepen trade, double bilateral commerce and strengthen its integration into global value-chains.

Venture funding in India slows in Q3 2025; exit activity hits a seven-year high

A report from KPMG Private Enterprise shows that Indian venture capital investment decelerated in the third quarter amid global uncertainty. However, exit activity surged, reaching levels not seen in seven years. The study highlights that while investors remain cautious in new deal-making, optimism persists due to a buoyant IPO/exit market — pointing to a shift in the ecosystem from pure capital-infusion to realisation/liquidity.

Government limits online content takedown powers to senior officials

The Indian government has amended its rules regarding internet-content takedowns, restricting the authority to issue such removal orders to senior bureaucrats of joint-secretary rank or higher, and to police officers at deputy inspector general rank or above. The change comes in the wake of a legal dispute with social-media platform X (formerly Twitter) and is slated to take effect from 15 November. The new rules also mandate detailed justification for each takedown and require periodic monthly reviews by senior officials.

Indian government bonds slip on lack of buying interest

In the domestic debt market, benchmark government 10-year yields have edged higher amid weak demand and unfavourable supply-demand dynamics. The spread between U.S. Treasury yields and Indian sovereign yields has widened to levels seen in 2024. Traders noted that liquidity pressures ahead of festive flows and a sizeable upcoming treasury-bill auction added strain to the market mood.

Colgate‑Palmolive India reports a 7.2 % fall in quarterly net profit amid GST-cut disruption

The Indian unit of Colgate-Palmolive reported a net profit of ₹3.28 billion for the quarter ended 30 September, down 7.2 % year-on-year. Revenue from operations declined 6.3 % to ₹15.07 billion, as retailers and distributors delayed inventory restocking ahead of the government’s Goods & Services Tax (GST) rate cuts implemented from 22 September. The company also cited weak urban demand in oral-care as a headwind, stressing that the operating environment remained “difficult”.

Hindustan Unilever (HUL) sees flat volumes, profit decline ahead of tax cuts

HUL reported a nearly 5 % drop in profit before tax and exceptional items for the second quarter, attributed to volume stagnation and distributor restocking ahead of the GST reductions. While its revenue grew 2 % year-on-year to ₹160.34 billion, the beauty and skincare segment posted a mid-single-digit rise, offsetting weak performance in staples. The company expects improvement in November onwards as the GST-cut related transition effects wane.

Hero MotoCorp to enter UK market with Hunk 440 motorcycle

India’s largest two-wheeler maker announced a partnership with UK-based distributor MotoGB to bring the Euro 5+ compliant Hunk 440 motorcycle to the UK. Priced at 3,990 euros, the bike will be initially available through more than 25 sales & services points in the UK, expanding to over 35 by 2026. The move reflects Hero’s further push into the international market amid domestic production pressure and higher costs.

Upcoming regional startup event: ET Soonicorns Summit 2025 (Mumbai Sundowner) set for late October

The event is designed to spotlight “minicorns” and “soonicorns” — i.e., startups just below unicorn status — from Maharashtra and the wider region. With founders, investors and ecosystem-enablers converging, the summit is expected to catalyse deal-flow and visibility for regional innovation hubs beyond the usual metros. It signals the increasing decentralisation of India’s startup ecosystem.

Policy support for startups emphasised via combined banking & mentorship frameworks

The MoUs signed by DPIIT (with Kotak and Primus) underscore a policy shift toward blending financial access (banking, credit) with non-financial support (mentorship, market access) for product startups. This approach aims to strengthen India’s innovation infrastructure and help early-stage firms move from ideation to scale. It also reflects the government’s focus on “Make in India” style capacity building within the startup sector.

Today’s roundup underscores a broad theme: transition and calibration. On one hand, India is moving ahead with structural reforms (in regulation, trade, manufacturing, startup support). On the other, there are clear signals of caution—slowing VC funding, pressure in bond markets, regulatory adjustments in the digital domain. For India’s startup-economy watchers, the takeaway is that momentum remains—but navigating this phase will require sharper focus on execution, financial discipline, and aligning with policy trends.