Summarize this content to 2000 words in 6 paragraphs in Arabic Good morning. India’s inflation for December was 5.22 per cent, a four-month low, thanks to some moderation in food prices. While the trend is encouraging, it is much higher than the Reserve Bank of India’s medium-term target of 4 per cent. Is this enough for a rate cut next month? In today’s newsletter, we take a look at the real money gaming industry, which got a small breather on Friday when the Supreme Court asked for a temporary pause in tax proceedings against 49 companies. But first, the war of titans: India’s software service giants Infosys and Cognizant slug it out in a court in Texas. Clash of clansThe battle between two Indian(ish) technology majors escalated, with Infosys, on Friday, filing a counter lawsuit against Cognizant. This is the story so far: in August 2024, Cognizant subsidiary TriZetto, which provides technology services to the US healthcare industry, took Infosys to court. It accused Infosys of building a competing program by unlawfully extracting data from its proprietary software. Now, five months later, Infosys has come out all guns blazing, not only rejecting these accusations but also levelling charges of anti-competitive practices against its rival. Infosys, in its counter suit, alleges that Cognizant obstructed the development of its healthcare platform (Helix) by poaching key personnel and placing restrictive contractual barriers. The suit specifically alleges that Ravi Kumar, who quit Infosys in October 2022 and became Cognizant’s chief executive four months later, deliberately delayed the launch of Helix while he was transitioning to his new job. Infosys is seeking a jury trial and has demanded three times the damages it allegedly suffered, plus legal costs. Infosys and Cognizant have long been rivals, fighting over both client contracts as well as employees. These lawsuits also highlight the intensely competitive landscape in which Indian IT companies operate in the US, with little differentiation in the services they provide. Much is at stake for both companies. A protracted legal battle serves neither’s interests, but since things have got this far, a quick retreat by either party also looks unlikely.Do you have an inside scoop on this? Write to me at [email protected] or hit reply.More news you should knowAir India is now in the final phase of its transformation, the airline’s chief tells the FT.China’s 10-year bond yield has fallen to a record low, sparking concerns of deflation.The hottest start-ups in Silicon Valley are finding ways of staying private for longer.A £1.5bn class action case against Apple kicks off in UK courts.Alice Weidel: the former Goldman analyst leading Germany’s far-right.Bet on it (or don’t)Real money gaming, a sector which hasn’t had any good news in a while, got a breather on Friday when the Supreme Court placed a temporary halt on tax proceedings that would have cost 49 companies a whopping Rs1.1tn (about $14bn). Stocks of Delta Corp and OnMobile, which both run platforms that allow users to play games such as rummy for actual money, rose by 6.44 per cent and 2.38 per cent respectively on the news. But this is just a temporary reprieve, with the final hearing set for March 18.For years, flush with funds and abundant user interest, real money gaming companies lobbied hard to convince the government that these were games of skill, and not of chance, a distinction that allowed them to fall in the 18 per cent tax rate. But in October 2023, the finance ministry grouped these games together with lotteries and gambling. Not only would the companies have to start paying tax at 28 per cent, the tax would be computed on the value of the bet — not just on the winnings. The companies argue that the high rate of tax will lead to a surge in unauthorised gaming as operators go underground. There are two significant factors at play. First, online gambling is a serious societal issue — one with devastating consequences especially in the low-income sections of the population. Second, in general, sin taxes are a populist tool in the government’s arsenal and it is more likely to use them than not. While real money gaming is a big business opportunity and India’s affluent are keen on spending money on it, the government’s preference will be to regulate for the larger good. In the aftermath of the government’s October 2023 decision, several companies decided to move their headquarters outside India. This might just be the one industry the government is not going to invest heavily in luring back. Go figureThe Maha Kumbh, which comes around once every 12 years, started yesterday and will continue until February 26. Here are some mind-boggling stats about the world’s largest spiritual congregation. My mantra“For me, starting the day early is important. I wake up between 4.30am and 5am, dedicating the first 45 minutes to physical activity. This practice gives me the necessary balance and energy to approach the day’s tasks more effectively. While the workday can often be long, I find it critical to prioritise physical wellbeing at the start, as it strengthens my ability to engage in more purposeful mental efforts throughout the day.”— Atul Soneja, chief operating officer, Tech MahindraEach week, we invite a top Indian business leader to tell us their mantra for work and life. Want to know what your boss is thinking? Nominate them by replying to [email protected]. Quick questionLarsen & Toubro head S. N. Subrahmanyan inadvertently launched a thousand memes with his statement that employees should work 90 hours a week. (India Brief is not going to get into what you should be staring at on Sundays).How many hours of work are ideal in a week? Vote in our poll here.Buzzer roundOn Friday we asked: According to Donald Trump, who operates the Panama Canal?The answer is . . . China. Thank you for reading. India Business Briefing is edited by Tee Zhuo. Please send feedback, suggestions (and gossip) to [email protected].
