{"id":85314,"date":"2025-12-03T00:00:00","date_gmt":"2025-12-03T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/mena-india\/india-directs-smartphone-makers-to-preload-govt-cybersecurity-app-state-refiners-step-up-russian-crude-purchases\/"},"modified":"2025-12-03T00:00:00","modified_gmt":"2025-12-03T00:00:00","slug":"india-directs-smartphone-makers-to-preload-govt-cybersecurity-app-state-refiners-step-up-russian-crude-purchases","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/mena-india\/2025\/12\/03\/india-directs-smartphone-makers-to-preload-govt-cybersecurity-app-state-refiners-step-up-russian-crude-purchases\/","title":{"rendered":"India directs smartphone makers to preload govt cybersecurity app; State refiners step up Russian crude purchases"},"content":{"rendered":"

Good morning, friends. <\/strong>It\u2019s a particularly busy morning on the MENA-India corridor, with piles of IPO news on both sides, macro-economic soup to consume as monthly reports come tumbling in, and a flap over New Delhi\u2019s bid to force global smartphone makers to install a mandatory government app. <\/p>\n

AND- Indian companies are still piling into the Gulf.<\/strong> Our friends at Stride Capital<\/strong> are pushing ahead with a plan to hit USD 500 mn in AUM, they tell us in an exclusive interview. Meanwhile, automaker Ashok Leyland<\/strong> is opening a wholly-owned Saudi unit and fashion platform Myntra<\/strong> is moving back into the UAE after success in Singapore. <\/p>\n

^^ We have all of that and more, below.<\/p>\n

THE BIG STORY HERE AT HOME- <\/p>\n

<\/a> The Indian government\u2019s \u201cundeletable\u201d app may be deletable after <\/strong>all. <\/strong>The Modi government appeared to<\/a>walk back<\/a> a requirement that smartphones make a new mandatory government app<\/a> \u201cundeletable,\u201d bowing to industry pressure and privacy concerns just days after the initial directive surfaced. The story dominates coverage of India in the global business press this morning. <\/p>\n

The reversal:<\/strong> Communications Minister Jyotiraditya Scindia clarified that while manufacturers must still preload the state-owned Sanchar Saathi cybersecurity app, users are free to delete it. \u201cKeeping it in their devices or not is up to the user,\u201d Scindia said, explicitly contradicting an earlier directive that the measure would require devicemakers to ensure \u201cno disabling or restriction\u201d of the app\u2019s features. The ministry is also requiring devicemakers push the app out to existing users through software updates. <\/p>\n

Watch this space: <\/strong>While Scindia\u2019s remarks overnight were designed to tamp-down the controversy, the government hadn\u2019t (as of our dispatch time this morning) released an amended executive order, nor has it issued new guidelines.<\/p>\n

This likely heads off a showdown with Big Tech.<\/strong> Apple was reportedly preparing to resist the original order, with sources telling Reuters the company planned to argue that mandatory, non-removable third-party software violated its global security protocols. The mandate applies to all major players in the Indian market, including Samsung, Xiaomi, Vivo, and Oppo, who now have 90 days to push the app to devices.<\/p>\n

Why the panic?<\/strong> Privacy advocates and opposition parties had flagged the move as a potential step toward state surveillance, arguing the directive was issued without consultation and could introduce security vulnerabilities.<\/p>\n

The government\u2019s defense:<\/strong> Scindia insists the app is strictly a \u201ccitizen safety tool\u201d designed to curb cybercrime, citing data that the platform has already helped block some 620k fraud-linked IMEIs and recover thousands of lost phones.<\/p>\n

Our take:<\/strong> This was a trial balloon that popped. New Delhi attempted to assert digital sovereignty over hardware \u2014 a growing trend in emerging markets \u2014 but underestimated the ferocity of the privacy backlash. By pivoting to \u201cvoluntary,\u201d the government saves face: It keeps its app on mns of screens by default (relying on user inertia to keep it there) without forcing a legal battle with Apple that could have embarrassed the administration.<\/p>\n

Why it matters:<\/strong> India is one of the few markets big enough to try to bully Big Tech \u2014 but there are limits. While the EU forces changes through antitrust legislation (like USB-C ports or alternative app stores), India often uses direct executive fiat. This episode draws a line in the sand: Preloading is acceptable; locking the software in is not.<\/p>\n

What\u2019s next?<\/strong> The rollout begins. Manufacturers must now integrate Sanchar Saathi into their builds within three months. Watch closely to see if Apple isolates the app within a sandbox to prevent it from accessing broader system data, regardless of whether users choose to keep it.<\/p>\n

The story is everywhere this morning<\/strong>, from Bloomberg<\/a> and Reuters<\/a> to the New York Times<\/a>.<\/p>\n

MENA THIS MORNING-<\/p>\n

Among the stories making headlines in the Middle East this morning<\/strong>, from our UAE<\/a>, Saudi<\/a>, and Egypt<\/a> editions:<\/p>\n

Saudi Arabia will continue spending through the dip.<\/strong> Despite pulling back from the excesses of Neom and The Line, the Kingdom isn't tapping the brakes: Finance Minister Mohammed Al Jadaan\u2019s FY2026 budget<\/strong> projects an SAR 165 bn (USD 44 bn) deficit to sustain the diversification drive; Saudi National Bank<\/strong> is seeking USD 1 bn to bolster its balance sheet \u2014 partly from Asian lenders \u2014 to help fund the vision. The IPO window<\/strong> remains open, with education play Almasar<\/strong> bucking the trend of recent lackluster market debuts: It popped 18% on its first day of trading. The question remains: Can liquidity support the 100+ firms in the pipeline \u2014 let alone back them in the aftermarket \u2014 if Saudi firms can\u2019t attract institutional capital?<\/p>\n

The UAE is doubling down on future-proofing.<\/strong> Back from the national holiday, the Emirates continues its pivot to tech<\/strong>, joining a US-led summit on AI supply chains next week. The non-oil economy grew<\/strong> 5.7% in 1H 2025, driving Abu Dhabi inflation<\/strong> to a 20-month high as talent floods the capital. <\/p>\n

Corridor Signal:<\/strong> India\u2019s Stride Ventures is capitalizing on this growth, securing commitments for its ADGM fund to deploy capital into UAE and Saudi startups.<\/p>\n

AND- UAE and Saudi equity markets were both down<\/strong> for the month of November. <\/p>\n

Egypt stabilizes.<\/strong> Net foreign assets climbed to USD 22.7 bn in October, signaling improved <\/strong>liquidity<\/strong> on the back of strong remittances and foreign portfolio inflows. Meanwhile, a French-Egyptian consortium landed the EUR 540 mn Cairo-Alexandria freight railway<\/strong>, boosting the country's logistics ambitions.<\/p>\n

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HAPPENING TODAY-<\/p>\n

Meesho IPO kicks off today:<\/strong> The SoftBank-backed e-commerce unicorn hits the market looking to raise INR 54 bn (c. USD 640 mn), with a price band set at INR 105-111 per share.<\/p>\n

Meesho is a \u201cvalue commerce\u201d marketplace<\/strong> that connects suppliers of unbranded goods \u2014 mostly fashion and home accessories \u2014 with budget-conscious shoppers in India\u2019s Tier-2 and Tier-3 cities, originally gaining fame for its reseller model.<\/p>\n

Why it matters:<\/strong> This is the biggest test yet for India\u2019s mass-market thesis. With a valuation of c. USD 6 bn, Meesho is betting its grip on the \u201cnext bn users\u201d can hold off Amazon and Flipkart. Anchor investors \u2014 including Fidelity and BlackRock \u2014 like its chances: They already snapped up INR 24 bn worth of shares yesterday, signaling strong institutional appetite as the company\u2019s losses continue to narrow.<\/p>\n

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HAPPENING THIS WEEK <\/p>\n

Russian<\/strong> President Vladimir Putin arrives in New Delhi tomorrow for a two-day state visit<\/strong>, his first to India since the start of the Ukraine war. He\u2019s expected to pitch Russian crude as well as military equipment including missile systems and fighter jets to Indian buyers, according to Reuters<\/a>. <\/p>\n

WATCH THIS SPACE-<\/p>\n

#1- The INR crossed the psychologically important mark of 90 to the <\/strong>greenback<\/strong> this morning on the back of weak foreign inflows, hitting a new record-low 90.14 to the USD.<\/p>\n

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[wwtt4] #2- Adani plots USD 15 bn airport expansion.<\/strong> The conglomerate plans to invest the funds over five years to boost capacity to 200 mn passengers annually ahead of a planned IPO for the unit. The roadmap includes major upgrades at Navi Mumbai and hubs including Ahmedabad and Jaipur, positioning Adani to capture two-thirds of India\u2019s projected 2030 air traffic.<\/p>\n

Speaking of aviation: <\/strong>India\u2019s aviation regulator has grounded an Air India aircraft and launched an investigation after the carrier operated the jet with an expired airworthiness review certificate, Reuters<\/a> reports. The Airbus A320 had flown eight times after its certificate had lapsed.<\/p>\n

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<\/a> #3- IOC + BPCL load up on Russian crude:<\/strong> State refiners Indian Oil Corp and Bharat Petroleum have snapped up additional Russian shipments for January, capitalizing on widening discounts vs Gulf crude and better availability from non-sanctioned tankers, Bloomberg<\/a> reports.<\/p>\n

Why it matters:<\/strong> The discount is back. Indian buying cooled when the price advantage over Middle East grades narrowed, but with the spread reportedly widening again to c. USD 5 per barrel (up from USD 3), state refiners are proving that price \u2014 not politics \u2014 is the policy that matters.<\/p>\n

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#4- <\/strong>India<\/strong> plans to raise the minimum efficiency requirement for solar <\/strong>modules used in government-supported and grid-connected projects<\/strong> beginning 1 January 2027, according to a draft notification<\/a> issued by the New and Renewable Energy Ministry. The requirement would make a significant part of existing manufacturing capacity obsolete<\/strong>, with production lines that produce lower-efficiency modules being forced to shift to next-gen technologies, Bloomberg<\/a> reports, quoting energy experts. <\/p>\n

The proposal comes amid a rapidly expanding domestic manufacturing base and oversupply concerns<\/strong>, with industry analyses estimating that module capacity in India could exceed 120-150 GW by 2025, according to Economic Times<\/a>. <\/p>\n

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#5- Adia + ICD back VC fund: <\/strong>Bengaluru-based VC firm Fireside Ventures has raised INR 22.65 bn (USD 250 mn) for its fourth fund from a mix of global and domestic investors including the Abu Dhabi Investment Authority, Investment Corporation of Dubai, Fidelity International, and US university endowments, Reuters<\/a> reports. <\/p>\n

Background: <\/strong>Founded in 2017, Fireside now manages USD 650 mn across four funds with a portfolio of over 60 consumer brands including Mamaearth, boAt, and the Sleep Company, as per the newswire.<\/p>\n

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DATA POINT- <\/p>\n

Speaking of venture capital: Indian VC and private equity shops had a busy October, <\/strong>closing 102 transactions<\/strong>, a 9% increase over the same period a year ago, according to IVCA-EY\u2019s latest report (pdf)<\/a>. <\/p>\n

Where money flowed:<\/strong> <\/p>\n