US Business Newsletter

August 01 - August 31, 2023

Greetings from Consulate General of India,

New York!

Welcome to the August 2023 edition of our newsletter, bringing you important policy and high-impact news.

We hope you find it useful.

The Moonshot Heard Round the World

India's Chandrayaan-3 moon landing was a remarkable achievement, making India one of the few nations to land on the moon's surface, and what set it apart was its cost-effectiveness. Despite a significantly lower budget compared to other space-faring nations, India's approach involved paying rocket scientists less, using smaller launch vehicles, leveraging technological breakthroughs from other countries, and prioritising national pride over scientific advancement. This approach not only kept costs low but also increased the probability of mission success. India's space program exemplifies the power of incremental progress, ingenious resourcefulness, learning from failures, and the significance of each space mission building upon the knowledge gained from previous endeavours, echoing the spirit of progress that began with Neil Armstrong's historic moonwalk.

Big companies like GE Appliances are using crowdfunding to assess consumer interest in niche products. GE Appliances' FirstBuild unit employs crowdfunding to determine whether potential products, such as indoor smokers or induction cooktops, have enough demand. If a product garners sufficient pre-orders, it moves into production; otherwise, the concept is abandoned. This approach, typically associated with independent artists and startups, allows companies to gather consumer insights directly, bypassing traditional market research. Other large companies, such as Canon and Hasbro, are also leveraging crowdfunding to test the viability of new products, adjusting designs and marketing strategies based on early adopter feedback. While some critics argue that crowdfunding should be reserved for small creators, companies like GE Appliances see it as a valuable alternative research tool.

Powell Says Fed Will ‘Proceed Carefully’ on Further Rate Rises



 Federal Reserve Chair Jerome Powell delivered an address at the Kansas City Fed's annual symposium, emphasizing the need to balance interest rates between controlling inflation and preventing an economic slowdown. While Powell expressed the intention to hold interest rates steady for now, he kept the possibility of raising them later in the year if inflation doesn't decline as expected. He highlighted concerns about recent signs of economic growth potentially exceeding expectations, which could risk inflation. This cautious approach led to fluctuations in the stock market, and Powell indicated the Fed would proceed carefully, with the next policy meeting in September likely to maintain the current rate. The speech also recognized the uncertainties surrounding the neutral rate of interest and the challenges of navigating the descent from high inflation.

Amazon Restarts Shipping Unit That Competes With UPS and FedEx

 Amazon has relaunched its Amazon Shipping service for external deliveries, resuming a program that had been paused during the COVID-19 pandemic. This service, which competes directly with FedEx and UPS, is now available in the contiguous United States. It handles packages sold on Amazon's website as well as items from other websites and selling channels. To qualify for the program, businesses must also sell on Amazon's platform. Amazon paused the service during the pandemic due to a surge in orders, but now it's being reopened as the company seeks to optimize its logistics, improve delivery speed, and reduce excess capacity in its network, all while maintaining its dominance and meeting climate-related goals.