AI chatbots reshape India’s $283 billion IT industry, threatening call-center jobs

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In bustling offices across India, artificial intelligence chatbots are taking over the headsets once worn by millions of call-center workers. Startups like LimeChat are leading the charge, building generative AI systems that can handle customer inquiries with human-like fluency — and at a fraction of the cost.

LimeChat claims its chatbots can reduce the number of human agents needed to manage 10,000 monthly customer queries by up to 80%. “Once you hire a LimeChat agent, you never have to hire again,” said co-founder Nikhil Gupta, whose company has already automated thousands of jobs and now handles 70% of customer complaints for clients.

This rapid shift marks a turning point for India’s $283 billion IT and business process outsourcing sector, which employs 1.65 million people in call centers, data management, and payroll. While India became the world’s “back office” thanks to cheap labor and English proficiency, automation now threatens that foundation.

Despite concerns over job losses, the government is embracing AI’s potential. Prime Minister Narendra Modi insists that “work does not disappear due to technology — it changes,” even as hiring growth in the sector slows sharply. Analysts warn that AI could cut call-center revenues by 50% in the next five years.

Yet, not everyone is losing. Startups like Haptik, acquired by Reliance, and LimeChat are thriving. Haptik says its AI agents cost as little as $120 per month and can cut support costs by 30%. Meanwhile, training centers in Hyderabad’s Ameerpet district have pivoted from teaching Java to AI and prompt engineering to prepare students for a new era of work.

The outcome of India’s AI gamble could shape how developing economies balance automation and employment — a test of whether embracing disruption will create prosperity or deepen inequality.

Tim Cook reaffirms Apple’s commitment to China amid U.S.-China trade tensions

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Apple CEO Tim Cook pledged to increase the company’s investment in China during a meeting with China’s Industry Minister Li Lecheng in Beijing on Wednesday, signaling Apple’s intent to strengthen its presence in its most crucial manufacturing hub despite rising geopolitical tensions.

According to an official Chinese summary, Cook said Apple would continue to invest in China, though details of the scale or focus of the investment were not disclosed. The move comes as many U.S. firms tread cautiously between Beijing and Washington, with U.S. President Donald Trump pushing for domestic manufacturing and imposing tariffs that have strained global supply chains.

Apple has so far avoided the direct fallout of the trade war, unlike other tech firms such as Nvidia and Qualcomm, which have faced regulatory challenges in China. Still, the iPhone maker must balance its relationships carefully — reassuring Washington of its “American Manufacturing Program,” while maintaining ties with Chinese suppliers that produce the bulk of its devices.

Earlier this week, Apple COO Sabih Khan visited Lens Technology, a longtime Chinese supplier of iPhone glass components, while Cook toured Apple’s Shanghai store and met with local developers and designers. Apple’s sales in China rose 0.6% year-on-year in the third quarter, aided by strong demand for the iPhone 17 series, making it the only top-three smartphone brand in the country to post growth.

China’s industry minister expressed optimism that Apple would “continue to explore the Chinese market and grow together with Chinese suppliers,” emphasizing Beijing’s intent to sustain a favorable environment for foreign businesses.

Apple urges India to revise tax law that could hinder its expansion plans

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Apple is lobbying the Indian government to amend an income tax law that could expose the company to billions in additional taxes over equipment ownership, according to sources familiar with the matter. The U.S. tech giant seeks to ensure it is not taxed for owning high-end iPhone assembly machinery used by its contract manufacturers, such as Foxconn and Tata, as it ramps up production in India.

The push comes as Apple expands its footprint beyond China, where it traditionally owns production equipment but faces no tax liability. Under India’s 1961 Income Tax Act, however, such ownership would create a “business connection,” potentially subjecting Apple’s global iPhone profits to Indian taxes.

Executives have held discussions with Indian officials in recent months to seek changes to the law, warning that current regulations could stall future growth. “If the legacy law is changed, it will become easy for Apple to expand … India can become more competitive globally,” one industry source said.

India’s government is cautiously reviewing Apple’s request, balancing its need for foreign investment with the protection of its taxation rights. A senior official said talks are ongoing, calling it “a tough call,” but added that India “needs investments” and aims to find a workable solution.

Analysts note that specialized iPhone assembly equipment can cost billions of dollars — far beyond what local manufacturers can finance — underscoring the urgency of Apple’s appeal. The lobbying highlights the stakes as India seeks to position itself as a global smartphone manufacturing hub while maintaining fiscal sovereignty.