The productivity gap: Can Indian IT firms catch up with global tech giants?
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Highlights from the latest edition of Business Bytes:
LEAD: India’s top IT firms—TCS, Infosys, and HCL—have seen steady gains in revenue per employee, driven by better utilization and AI adoption. However, a wide gap remains with global tech giants, highlighting the need for a shift toward higher-value, product-led growth.
India’s vast food supply chain feeds 1.4 billion people but suffers from inefficiencies like infrastructure gaps and post-harvest losses. This article examines the system’s pain points and emerging solutions—from government initiatives to tech-driven innovations—that can boost efficiency and resilience.
HIGHLIGHT: After 41 Years, India Returns to Space
As India streamlines cross-border trade with RBI’s Draft FEMA Regulations 2025, businesses face tighter compliance but also new opportunities. This article explores how AI-powered regulatory tools can help exporters and banks navigate these changes smoothly and stay globally competitive.
Terex Ventures is reshaping startup fundraising by making founders truly investment-ready, not just pitch-perfect. In an exclusive IBT interview, founder Priyanka Madnani shares insights on investor trends, cross-border expansion, and winning strategies for 2025.
FACT: Assam Tea's 200th anniversary will be celebrated at the Summer Fancy Food Show 2025 in New York.
Reliance Defence has clinched a significant ₹600 crore export order from Germany’s Rheinmetall Waffe Munition GmbH, marking a major milestone following their recently announced strategic partnership.
Stay tuned for more such updates!
LEAD STORY
The productivity gap: Can Indian IT firms catch up with global tech giants?
India’s leading IT firms—TCS, Infosys, and HCL—have reported a steady rise in revenue per employee (RPE) over the past financial year, signaling gains in productivity and operational efficiency. TCS recorded an RPE of US$ 49,902, Infosys reached US$ 60,164, and HCL stood at US$ 61,388, marking year-on-year growth for each.
While these improvements reflect stronger employee utilization and the impact of automation and AI adoption, the numbers remain significantly lower than those of global tech giants—Google, for instance, posted an RPE of nearly US$ 1.97 million in Q1 2025, while Microsoft reached over US$ 1.22 million.
This blog explores the underlying reasons behind this persistent gap, from business models and pricing strategies to staffing structures, and analyzes how Indian IT firms can leverage the AI era to transition toward higher-value, product-driven growth and improve their RPE going forward.
Feeding a billion: Identifying the gaps in India’s food supply chain
India’s food supply chain is one of the most expansive and complex in the world, feeding a population of 1.4 billion through an intricate network of farmers, intermediaries, processors, and retailers. Despite being a global leader in food production, inefficiencies across the chain—ranging from poor infrastructure and cold storage shortages to fragmented market access—lead to massive post-harvest losses and food wastage.
This article explores the key components of India’s food supply chain, identifies major discrepancies that hinder its performance, and highlights promising solutions—such as government schemes, digital tools, and startup innovations—that can transform it into a more resilient and efficient system.
HIGHLIGHT OF THE DAY
After 41 Years, India Returns to Space
Group Captain Shukla scripted history by embarking on a space odyssey along with three others to the International Space Station as part of a commercial mission by Axiom Space on Wednesday (June 25, 2025), 41 years after astronaut Rakesh Sharma's spaceflight onboard a Russian spacecraft.
Streamlining trade compliance: RBI’s draft FEMA 2025 & the rise of AI co-pilots
As India accelerates its integration into global trade networks, regulatory clarity and operational efficiency have become critical enablers of competitiveness. The Reserve Bank of India’s Draft FEMA (Export and Import of Goods and Services) Regulations, 2025, unveiled on April 4, marks a watershed moment in the country’s trade policy landscape. Aimed at simplifying and modernizing cross-border transaction norms, the draft seeks to harmonize legacy regulations, promote ease of doing business, and align India’s trade practices with global benchmarks.
Yet, as the new framework introduces enhanced compliance requirements and stricter oversight responsibilities—especially for exporters and Authorized Dealer (AD) Banks—it also opens the door for transformative technological intervention. This article explores how AI-powered regulatory co-pilots can bridge the emerging compliance gap, enabling seamless adherence to RBI mandates while equipping Indian businesses to thrive in an increasingly complex global trade environment.
CHOPPER VIEW
Funding in 2025 demands more than vision—It needs execution, proof, and a global lens
Terex Ventures is a boutique investment banking advisory firm dedicated to making startups not just pitch-ready but truly investment-ready. It offers end-to-end support—from building strategy and investor connections to enabling cross-border expansion.
In this exclusive India Business & Trade interview, Founder Priyanka Madnani shares how Terex is bridging the gap between startups and investors, particularly through the India-UAE-Japan corridor. She discusses changing investor expectations, rising interest in sectors like AI, GreenTech, and HealthTech, and the urgent need for stronger R&D investment in India—alongside her top fundraising tips for 2025.
FACT OF THE DAY
Assam Tea's 200th anniversary will be celebrated at the Summer Fancy Food Show 2025 in New York. The India Pavilion will feature an "Assam Tea Lounge," inaugurated by Ravi Kota and Ambassador Binaya S. Pradhan. This initiative, supported by Chief Minister Himanta Biswa Sarma, aims to promote Assam's tea heritage and expand U.S. trade.
Reliance Defence bags ₹600 crore order from Rheinmetall
Reliance Defence has clinched a significant ₹600 crore export order from Germany’s Rheinmetall Waffe Munition GmbH, marking a major milestone following their recently announced strategic partnership. The collaboration is geared toward strengthening India’s indigenous defence manufacturing ecosystem and advancing Reliance Defence’s ambition to become a top-tier defence exporter. It also underscores a shared commitment to supporting India’s defence sector and aligns with the vision of self-reliance under the leadership of Prime Minister Narendra Modi.
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