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By Nantoo Banerjee The all-out war in West Asia, involving the US-Israel combine and Iran and covering 10 countries in the region, is expected to have a big economic backlash on India. At stake are India’s $120-billion trade in this region, huge oil imports, overall balance of payments, inflow of external investments, foreign repatriation and […]

The article Iran War Is Likely To Hit Indian Economy Hard appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Government officials confirmed that a warship from Iran was granted permission to dock at a naval facility in Kochi shortly before another vessel from the same flotilla was sunk by a United States submarine in the Indian Ocean, an episode that has drawn global attention to maritime diplomacy and escalating naval tensions around South Asia.

The vessel, identified as IRIS Lavan, sought permission to enter Kochi harbour citing technical problems while sailing in the region. Authorities approved the request, allowing the ship and its crew to remain at the naval base as a humanitarian measure after Tehran asked for urgent assistance. Around 183 sailors from the ship were accommodated at naval facilities after the vessel reached the port.

The docking occurred against the backdrop of a widening military confrontation involving Washington and Tehran. Only days later, the Iranian frigate IRIS Dena was torpedoed by a United States submarine near the southern coast of Sri Lanka, killing at least 87 sailors and triggering a rescue operation by Sri Lankan authorities.

Officials explained that the decision to allow the Iranian ship to dock was based on established maritime norms requiring assistance to vessels in distress. External affairs minister Subrahmanyam Jaishankar said the vessel had asked for access to a port and authorities responded on humanitarian grounds.

The IRIS Dena had been returning from international naval events hosted along the eastern seaboard, including a fleet review and exercises involving several foreign navies. The frigate, part of Iran’s Moudge-class warship programme, had previously participated in naval engagements aimed at expanding cooperation between regional maritime forces.

Military analysts say the sequence of events highlights how the expanding confrontation between Iran and the United States is spilling into waters far from the Persian Gulf. The submarine strike on the Dena marked one of the rare occasions in modern naval warfare when a surface warship was destroyed by a torpedo attack launched from a submarine.

According to defence officials and maritime observers, the attack occurred about 40 nautical miles off Sri Lanka’s coast near Galle. A distress signal transmitted from the frigate prompted an immediate search and rescue operation by the Sri Lanka Navy and Air Force, which recovered survivors and bodies from the water.

The episode has placed India’s maritime diplomacy under scrutiny as regional tensions intensify. Authorities emphasised that the docking of the Iranian vessel was not connected to the military escalation and was conducted in line with international maritime conventions governing emergency access to ports.

Diplomats familiar with the situation indicated that Tehran had contacted authorities seeking temporary refuge for one of its ships after mechanical problems developed during its voyage in the Indian Ocean. Permission was granted for the vessel to dock in Kochi while the crew remained under naval supervision.

Another Iranian vessel operating in the region also encountered difficulties. The ship IRIS Bushehr reported engine trouble while sailing near Sri Lanka’s exclusive economic zone, prompting authorities there to escort it to harbour and relocate more than 200 sailors to a naval facility near Colombo.

The developments illustrate the complex position regional governments face as the confrontation between Washington and Tehran spreads beyond West Asia. Both powers maintain strategic ties with several countries around the Indian Ocean, leaving governments to balance diplomatic relations while responding to humanitarian requests at sea.

Strategic experts note that the Indian Ocean has long served as a vital corridor for energy shipments and naval deployments. The presence of Iranian vessels in the region had increased in recent years as Tehran attempted to demonstrate blue-water naval capabilities and deepen engagement with foreign maritime forces.

The Dena itself had previously taken part in international naval gatherings designed to encourage cooperation on maritime security, anti-piracy operations and humanitarian missions. Participation in those exercises underscored Iran’s attempt to portray its navy as an active participant in multinational maritime dialogue.

However, the destruction of the frigate has underscored how quickly cooperative settings can give way to confrontation during geopolitical crises. Analysts say the use of a submarine-launched torpedo against a warship outside the immediate conflict zone represents a striking demonstration of undersea warfare capabilities.

United States defence officials described the strike as a legitimate military action against an enemy naval vessel. Some legal experts have argued that attacking a military ship is permissible under the laws of armed conflict, though debate has emerged over the circumstances surrounding the incident and the obligations to rescue survivors.

Iranian authorities condemned the attack as an act of aggression and demanded the return of the bodies of sailors who died when the frigate sank. The incident has intensified diplomatic friction while raising questions about maritime security in waters linking the Middle East, South Asia and Southeast Asia.

Arabian Post Staff -Dubai Emerging market assets have endured one of their sharpest jolts in years as conflict spreading across the Middle East triggered a global flight from risk, driving currencies, equities and bonds lower while prompting major investment banks to scale back bullish positions. Heightened geopolitical tensions following United States and Israeli strikes on Iran unsettled financial markets, pushing investors towards the safety of the US […]

Matein Khalid The geopolitical convulsion in Iran has led to panic buying in Brent crude as Saudi Arabia’s largest refinery Ras Tanura and Qatar’s LNG mega complex at Ras Laffan shut production even as tanker traffic in the Straits of Hormuz comes to a halt amid soaring war risk, insurance premia, IRGC attacks on oil tankers and a 3X spike in VLCC/LNG freight costs. This is a […]

Arabian Post Staff -Dubai QatarEnergy, the state-owned energy company of Qatar, has halted production at its liquefied natural gas export facilities following Iranian drone strikes, triggering a major surge in global gas prices and underscoring vulnerabilities in energy markets. The suspension of operations at the Ras Laffan and Mesaieed Industrial City complexes, which together constitute the largest LNG export infrastructure in the world, has removed roughly one-fifth […]

By K Raveendran Brent crude ended the week near seven-month highs at roughly $73 a barrel, extending gains of about 16 per cent since the start of the year and injecting a fresh layer of uncertainty into the global macro outlook. Traders are now modelling far wider trading bands for the coming sessions, with several […]

The article A New Oil Shock For India: Crude At $80 Means Serious Trouble appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

India’s economic expansion has moderated to 7.8 per cent, yet the country continues to outpace other major economies, reinforcing its position as the fastest-growing large market amid a fragile global backdrop.

Official data released by the Ministry of Statistics and Programme Implementation showed that gross domestic product growth eased compared with earlier quarters, reflecting softer manufacturing momentum and uneven external demand. Even so, the figure places India ahead of the United States, China, Japan and the euro area, where growth rates remain significantly lower.

The government’s updated projections under the revised national accounts data series marginally lifted the full-year estimate for the financial year ending March 31. Growth for 2025/26 is now projected at 7.6 per cent, supported by strong domestic consumption, resilient services exports and sustained public capital expenditure. The revision follows adjustments in base year calculations and improved data capture across informal and digital sectors.

Finance ministry officials have maintained that macroeconomic fundamentals remain intact. Gross fixed capital formation has shown steady expansion, underpinned by infrastructure outlays in transport, railways and energy. Private sector investment has begun to recover after a prolonged period of balance sheet repair, although it has not yet matched the pace of public spending.

Manufacturing output, a key pillar of the government’s production-linked incentive schemes, displayed mixed trends. Electronics and pharmaceuticals recorded robust growth, aided by global supply chain realignments and incentives aimed at boosting exports. However, textiles and certain consumer durables segments faced headwinds from weaker global demand and inventory corrections.

Agriculture provided a stabilising force despite weather-related uncertainties linked to El Niño conditions earlier in the year. Official estimates indicate that foodgrain production remained broadly stable, while rural consumption showed gradual improvement following targeted welfare transfers and support prices for key crops.

Services continued to drive overall growth. Information technology exports, financial services and travel-related activity expanded steadily. The rebound in tourism and aviation, alongside strong digital payments growth, contributed to higher value-added in contact-intensive sectors. Data from the Reserve Bank of India indicate that credit growth has remained in double digits, reflecting demand for retail loans and working capital financing.

Inflation dynamics have been closely monitored. Consumer price inflation eased from earlier peaks but remains sensitive to food price volatility and global energy movements. The central bank has maintained a cautious stance, balancing price stability with growth objectives. Monetary policy decisions have focused on anchoring inflation expectations while ensuring adequate liquidity for productive sectors.

Global comparisons underscore India’s relative strength. The International Monetary Fund has projected growth in advanced economies at below 2 per cent, with China expected to expand at a more moderate pace compared with its historical averages. Analysts note that India’s domestic demand-led model offers insulation against external shocks, though it remains exposed to commodity price swings and geopolitical tensions affecting trade routes.

Fiscal policy has remained expansionary but calibrated. The government has reaffirmed its commitment to fiscal consolidation, targeting a gradual reduction in the deficit as revenue buoyancy improves. Tax collections have exceeded budgeted estimates in several quarters, aided by stronger compliance and digital tracking systems under the goods and services tax framework.

Labour market indicators present a nuanced picture. Urban employment has improved, particularly in construction and services, yet concerns persist regarding job creation in high-value manufacturing. Economists argue that sustaining growth above 7 per cent will require deeper structural reforms, including land and labour flexibility, skilling initiatives and streamlined regulatory processes.

Foreign direct investment inflows have fluctuated amid global capital reallocation, but India remains a preferred destination for long-term investors seeking exposure to a large consumer base and expanding digital infrastructure. Sovereign bond inclusion in global indices is expected to broaden the investor base and reduce borrowing costs over time.

External sector performance has been mixed. Merchandise exports faced pressure from slowing global trade volumes, while services exports and remittances provided offsetting support. The current account deficit remains manageable, supported by strong capital inflows and healthy foreign exchange reserves.

Corporate earnings trends indicate resilience across banking, infrastructure and select manufacturing firms. Equity markets have responded positively to growth data, though volatility persists amid global uncertainty. Rating agencies have acknowledged India’s stable outlook, citing prudent macroeconomic management and structural reforms.

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Arabian Post Staff -Dubai Major airports across the Gulf and wider Middle East continued to experience widespread flight cancellations and operational standstills as the airspace turmoil triggered by intensified military strikes on Iran extended into Monday. Key civil aviation hubs, including Dubai International, Abu Dhabi’s Zayed International and Doha’s Hamad International, remained shut or under severe restrictions, disrupting global air traffic flows and stranding tens of thousands […]

By K Raveendran A trial court’s decision to throw out the Delhi excise policy case against Arvind Kejriwal, Manish Sisodia and 21 others triggers a political and institutional reckoning that goes far beyond the fate of one prosecution. By sharply criticising the Central Bureau of Investigation for procedural violations, dependence on hearsay and disregard for […]

The article Credibility Of CBI, And By Implication Modi Govt, Destroyed Beyond Redemption appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

By Ashok Nilakantan Ayers NEW YORK: When Narendra Modi walked into the Knesset and told Israel’s parliament during his visit to Israel on February 25-26, that “peace and stability in West Asia are directly linked to India’s security,” he was doing more than delivering a diplomatic courtesy. He was planting a flag. India, under its […]

The article How Narendra Modi Shattered The Indian Foreign Policy Tradition During Visit To Israel appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

By K Raveendran The political sparring between Narendra Modi and Rahul Gandhi has entered a sharper and more consequential phase, with the balance of advantage appearing to tilt towards the Leader of the Opposition after an unexpected judicial intervention in the United States cast doubt on the durability of Donald Trump’s tariff regime. The rhetorical […]

The article Rahul Gandhi Making The Most Of Modi’s Tariff Blushes appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

New Delhi has set a target of raising ₹1.79 trillion, equivalent to about $20 billion, through public listings of state-run enterprises by the 2029/30 financial year, signalling a recalibration of its privatisation strategy towards stake sales rather than outright transfers of ownership. The plan forms part of a wider asset monetisation programme aimed at generating $183.7 billion over the next four years, according to a report issued […]

Tata Group, Tata Consultancy Services and OpenAI unveiled a landmark strategic partnership that aims to redefine the landscape of artificial intelligence deployment across enterprise, infrastructure and workforce development. With a multi-year agreement signed at a major AI summit in New Delhi, the collaboration is centred on building out AI infrastructure in India, rolling out Enterprise ChatGPT to thousands of employees and co-creating industry-tailored AI solutions.

Under the pact, TCS’ HyperVault unit will lead the development of large-scale AI-ready data centres, starting with an initial capacity of about 100 megawatts of power and a roadmap to scale to 1 gigawatt. OpenAI is anticipated to become the first anchor customer for this infrastructure, supporting advanced AI computation and inference workloads within the country.

Central to the partnership is the deployment of Enterprise ChatGPT across Tata Group companies, designed to enhance productivity and accelerate innovation within one of India’s largest conglomerates. Thousands of employees are set to receive access to the enterprise version of the generative AI platform, enabling broader internal adoption of AI tools for knowledge work and decision support.

Beyond productivity tools, the alliance will explore the development of “agentic” AI solutions that combine OpenAI’s cutting-edge models with TCS’ industry knowledge and engineering capabilities. This approach aims to address complex sector-specific challenges across fields such as manufacturing, financial services and healthcare, rather than offering generic AI applications.

OpenAI’s CEO Sam Altman positioned the collaboration as part of a larger initiative to expand the company’s footprint and capabilities in emerging markets like India, where demand for AI services and local data processing is accelerating. He emphasised the need for robust infrastructure and local partnerships to scale AI responsibly and securely.

Tata Sons Chairman N. Chandrasekaran described the partnership as a cornerstone in the group’s wider AI strategy, underscoring its potential to strengthen both domestic capacity and global competitiveness. The agreement aligns with TCS’ ambition to become a leading AI-driven technology services provider on the world stage, building on its existing HyperVault platform and ongoing investments in state-of-the-art data centres.

Financial markets reacted positively to the announcement, with TCS shares rising after the news broke, reflecting investor confidence in the company’s expanded role in AI infrastructure build-out and its position as a strategic partner to global AI developers.

The infrastructure element of the partnership places a strong emphasis on scalability and sustainability. TCS’ HyperVault facilities are designed to support liquid-cooled, high-density data environments that can handle the demanding computational needs of generative AI models, while also integrating with major cloud regions for broader interoperability.

A social impact component is woven into the alliance through plans to collaborate with the OpenAI Foundation to deliver AI training programmes for youth and underserved communities, equipping individuals with skills to engage with emerging technologies responsibly. The initiative aims to develop a pipeline of talent capable of contributing to the wider AI ecosystem.

This partnership comes amid a broader surge in investment and strategic alignments between global AI firms and Indian technology leaders, as the country seeks to position itself as a competitive hub for innovation and data infrastructure. Industry observers note that similar efforts by other major tech players to localise AI capabilities reflect a global trend towards data residency, regulatory compliance and sovereign control over critical AI workloads.

Critics caution that the rapid expansion of AI infrastructure must be balanced with robust governance frameworks to address concerns around data security, ethical use and labour market disruption. Analysts argue that while the partnership promises substantial gains in efficiency and capability, clear policies and oversight mechanisms will be crucial to ensure equitable benefits across society.

By Nantoo Banerjee The global AI impact summit 2026 in Delhi, last week, couldn’t have come at a more appropriate time when the world continues to be somewhat skeptical about adoption of Artificial Intelligence (AI), its limitations and potential consequences. Thanks to the pioneering effort by firms such as Nvidia, Microsoft, Google, Amazon, Meta and […]

The article India Should Adopt ‘Trustworthy’ AI Tools To Stay Safe And Transparent appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Air India has scrapped all its flights to and from New York City and Newark Liberty International Airport for both Monday, 23 February and Tuesday, 24 February, citing a powerful winter storm bearing down on the US East Coast that has forced widespread travel disruption and grounding of services. The airline said heavy snow, strong winds and hazardous conditions forecast across New York, New Jersey and adjoining states would significantly disrupt airport operations, prompting a precautionary halt to services to prioritise passenger and crew safety.

The cancellations form part of a wider aviation standstill triggered by one of the most intense nor’easter systems to sweep the Northeast this season. The National Weather Service has issued blizzard warnings stretching from Delaware through to Massachusetts, including the New York metropolitan area, where forecasters expect between 30 cm and 61 cm of snow, strong gusts and white-out conditions that threaten to make travel perilous. Municipal authorities have imposed travel bans on non-essential movement and activated emergency measures to cope with the storm’s impact.

Air India’s travel advisory advised travellers booked on affected services to contact the carrier’s support teams for rebooking and assistance, underscoring the airline’s efforts to manage disruption for customers despite the operational freeze. Dedicated ground teams have been deployed at airports to help passengers with alternative arrangements and support. The move mirrors actions by other international carriers, with Emirates and Etihad also cancelling flights to US destinations as the storm hobbles aviation corridors between the Middle East and the United States.

The storm system, dubbed a blizzard by weather authorities, has shut down road travel across much of the Northeast. New York City’s mayor has ordered a citywide ban on non-essential travel during peak weather, while neighbouring New Jersey and several states along the Eastern Seaboard have declared states of emergency, mobilising snow-clearing crews and National Guard units. Public transit services, including buses and commuter rail, face severe curtailments as snowfall rates surge.

Across the region, airports have reported thousands of flight cancellations and delays as shuddered operations ripple outward from the hardest-hit hubs. Alongside Air India’s transatlantic cancellations, major carriers have pulled back services at John F. Kennedy, LaGuardia and Boston Logan International Airports, where airlines have warned passengers to expect prolonged disruption as crews and infrastructure teams work to clear runways and de-ice aircraft.

The National Weather Service’s warnings reflect the storm’s scale. Blizzard alerts encompassing New York City mark the first of their kind in several years for the area, with forecasters noting that coastal flooding, damaging winds and snow loads that can down power lines are all present within the storm’s profile. Some jurisdictions are anticipating snow accumulations that could eclipse seasonal norms, heightening concerns over transportation and emergency response capabilities as attention turns to post-storm recovery.

The pattern of disruption emerging from this event follows a string of significant winter weather episodes across North America in recent weeks, including powerful storms earlier in the winter season that had already stressed transport networks and emergency services. This latest system’s timing and intensity compound logistical challenges for travellers and carriers alike, with airlines adjusting timetables, offering refunds and reshaping schedules as conditions evolve.

India is pushing ahead with a rapid build-out of artificial intelligence data centres, even as concerns mount over water stress and rising electricity demand in the very regions chosen to host them.

Global technology groups including Microsoft, Amazon and Google have pledged billions of dollars to expand cloud and AI infrastructure across the country, betting on strong digital adoption, a vast developer base and policy support from New Delhi. At the same time, domestic conglomerates such as Reliance Industries and the Adani Group have unveiled plans to scale up capacity, signalling an arms race to capture the next phase of AI growth.

The surge is centred on established data centre hubs such as Mumbai, Hyderabad, Chennai and the National Capital Region. Industry estimates place India’s operational data centre capacity at more than 900 megawatts, with projections that this could double within a few years as hyperscale facilities come online. Much of the new supply is being designed for AI workloads, which require more powerful processors and higher rack densities than traditional cloud computing.

Microsoft has committed to expanding its Azure footprint in multiple regions, while Amazon Web Services continues to invest in its Mumbai and Hyderabad zones. Google Cloud has also deepened its presence, citing demand from financial services, healthcare and government clients. Nvidia, whose graphics processing units underpin many AI systems, has strengthened partnerships with Indian firms to support sovereign AI initiatives and localised computing.

Officials argue that this wave of investment will support economic growth, digital inclusion and advanced research. India’s data protection framework and semiconductor incentives have been positioned as part of a broader strategy to create a resilient digital ecosystem. The government has also outlined ambitions to develop domestic AI models trained on local languages and datasets, increasing the need for high-performance computing infrastructure within national borders.

Yet environmental experts warn that the geography of expansion raises difficult trade-offs. Mumbai and Chennai, two of the country’s largest data centre clusters, face periodic water shortages and are vulnerable to climate-related risks, including extreme heat and flooding. Hyderabad, another key hub, has experienced mounting pressure on groundwater resources amid rapid urbanisation.

AI data centres are particularly resource-intensive. Training large language models can consume vast amounts of electricity, and the cooling systems required to maintain optimal temperatures often rely on significant volumes of water. While operators increasingly use advanced cooling technologies and pursue renewable energy procurement, critics question whether efficiency gains can keep pace with the scale of expansion.

According to industry analysts, AI-optimised facilities can draw substantially more power per rack than conventional data centres. India’s peak power demand has been rising steadily, touching record highs during heatwaves. Coal continues to account for a large share of electricity generation, although solar and wind capacity have expanded rapidly. The tension between decarbonisation goals and surging digital energy needs is becoming more pronounced.

Water usage is another flashpoint. Traditional evaporative cooling systems can require millions of litres annually for large facilities, though some operators are shifting to air-cooled or liquid immersion systems to reduce dependence on freshwater. Companies state that they are investing in water recycling, rainwater harvesting and wastewater treatment, particularly in regions classified as water-stressed.

Environmental groups argue that even with mitigation measures, cumulative impacts could strain local communities. Urban residents in Chennai and parts of Maharashtra have already experienced water rationing during drought periods. The prospect of energy-hungry AI campuses expanding in these same areas has prompted calls for stricter environmental assessments and greater transparency around resource use.

Corporate leaders counter that hyperscale operators often have stronger sustainability commitments than smaller, on-premise data centres. Many global firms have pledged to run on 100 per cent renewable energy and to become water positive within the decade. In India, power purchase agreements for solar and wind farms are increasingly tied to data centre projects, supporting the build-out of clean energy capacity.

Policy makers face a delicate balancing act. Digital infrastructure is viewed as critical to competitiveness, especially as countries race to develop generative AI capabilities. India’s large pool of engineers and its expanding start-up ecosystem make it an attractive base for AI research and deployment. Delaying capacity expansion could risk ceding ground to regional rivals in Southeast Asia or the Middle East, where governments are also courting hyperscale investment.

At the same time, climate resilience is rising on the national agenda. The country has set ambitious renewable energy targets and emphasised sustainable development in international forums. Integrating AI growth with environmental safeguards will test regulatory frameworks at both central and state levels.

Starbucks Corp’s India venture is accelerating store openings and introducing new menu innovations, including protein foam coffee, as it deepens its bet on the world’s most populous country even while losses widen. Tata Starbucks Pvt., the 50:50 joint venture between Starbucks Corporation and Tata Group, plans to prioritise scale over short-term profitability, according to chief executive Sushant Dash. The strategy underscores a long-term view of India as […]

By Ashok Nilakantan Ayers NEW YORK: When the Supreme Court of the United States struck down Donald Trump’s sweeping global tariffs on February 20, delivering a 6–3 verdict that the International Emergency Economic Powers Act of 1977 confers no authority to impose broad-spectrum duties without Congressional approval, the most consequential reverberations were felt not in […]

The article How A Supreme Court Ruling And A Russian Oil Gambit Rewrote India’s Trade Destiny appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Prime Minister Narendra Modi used a high-profile artificial intelligence summit to project India as a pivotal force in the global AI race, even as logistical strains and policy gaps underscored the scale of the challenge ahead.

The gathering brought together senior executives from global technology firms, domestic start-ups, academic leaders and policymakers, signalling a concerted push by New Delhi to position the country as both a major market and a development hub for AI. Modi framed the technology as central to economic growth, public service delivery and national competitiveness, arguing that India’s digital public infrastructure and vast talent pool provide a foundation for leadership in the field.

Speaking at the event, Modi said AI must be “inclusive and responsible”, emphasising applications in healthcare, agriculture, education and governance. He pointed to platforms such as Aadhaar, the Unified Payments Interface and the CoWIN vaccination system as examples of large-scale digital architecture that could integrate advanced analytics and machine learning.

The summit’s optics were carefully managed to reflect global engagement. Executives from leading US technology companies shared stages with founders of domestic firms working on generative AI models, language tools and enterprise software. Representatives from multilateral bodies and research institutions discussed governance frameworks, data protection and the need for cross-border collaboration.

Yet the conference also exposed tensions between ambition and execution. Several sessions ran behind schedule, and some industry participants privately expressed concern over policy uncertainty, particularly around data localisation, cross-border data flows and regulatory oversight. Draft frameworks on AI ethics and safety remain under consultation, and companies are awaiting clarity on compliance requirements.

The event unfolded against a backdrop of intensifying global competition. The United States continues to dominate foundational AI research and chip design, while China has invested heavily in domestic models and semiconductor capacity. The European Union has advanced comprehensive legislation through its AI Act, seeking to set global standards on risk and accountability.

India’s approach has been more incremental. The Ministry of Electronics and Information Technology has outlined plans to support compute infrastructure, encourage domestic large language models and expand skilling initiatives. Budget allocations for semiconductor manufacturing and design-linked incentives aim to reduce dependence on imports, although fabrication plants remain years away from full-scale production.

Industry analysts note that India’s strength lies in its software services sector and a large base of engineers. According to data from industry bodies, the country produces hundreds of thousands of engineering graduates annually, many of whom work in IT and business process outsourcing. Major domestic firms have announced internal AI integration plans, embedding generative tools into consulting, customer support and software development workflows.

At the same time, structural constraints are evident. High-performance computing resources are limited compared with those available in the US and China, and advanced chips are largely imported. Electricity reliability, data centre capacity and high-speed connectivity vary across regions. Venture capital funding for deep-tech ventures has fluctuated amid global market volatility.

Civil society groups and some academics used the summit to call for stronger safeguards. They warned that rapid deployment of AI systems without robust oversight could exacerbate misinformation, bias and privacy violations. India’s data protection law, enacted last year, sets out obligations for companies handling personal data, but implementing rules and enforcement mechanisms are still being developed.

Opposition figures have questioned whether headline events translate into durable policy outcomes. They argue that sustained investment in research universities, independent regulators and judicial capacity will be essential to manage the societal impact of AI. Some economists have also cautioned that automation could disrupt segments of the services workforce, requiring targeted reskilling programmes.

Global investors, however, continue to view India as a growth market. International cloud providers have expanded data centre footprints in cities such as Mumbai, Hyderabad and Chennai. Partnerships between domestic start-ups and multinational firms aim to build AI systems tailored to local languages and contexts, addressing a market of more than a billion people with diverse linguistic needs.

Modi’s messaging emphasised sovereignty alongside collaboration. He has repeatedly advocated for a global framework on AI governance that reflects the priorities of emerging economies, not solely those of advanced industrial nations. At the summit, he called for shared principles that balance innovation with ethical safeguards, while ensuring access for developing countries.

Diplomatically, the conference reinforced India’s profile as a convening power in technology policy, following its presidency of the G20 and engagement in forums on digital public goods. Whether that translates into tangible influence over global AI standards will depend on sustained coordination with like-minded partners and domestic regulatory coherence.

India has joined the Pax Silica Initiative, signing the Pax Silica Declaration and a Joint Statement on the India–U. S. AI Opportunity Partnership at a special event held on the margins of the AI Impact Summit in New Delhi, marking a new phase in strategic cooperation on advanced technologies.

The twin agreements signal a coordinated push to deepen collaboration on artificial intelligence research, semiconductor supply chains and standards-setting at a time when global competition over emerging technologies is intensifying. Officials described the move as part of a broader effort to align trusted partners around open, secure and innovation-driven AI ecosystems.

The Pax Silica Initiative, framed as a platform for cooperation among governments, industry and research institutions, aims to promote responsible AI development anchored in democratic values and transparent governance. By endorsing the declaration, India has committed to work with other signatories on areas including AI safety frameworks, interoperability standards and resilient semiconductor networks. The initiative also seeks to reduce vulnerabilities in critical technology supply chains, particularly in advanced chips that underpin AI systems.

The Joint Statement on the India–U. S. AI Opportunity Partnership outlines specific areas of collaboration between New Delhi and Washington. According to officials familiar with the discussions, the partnership will prioritise joint research projects, exchanges between academic institutions and closer engagement between start-ups and venture capital ecosystems in both countries. It also envisages cooperation on workforce development, with a focus on skilling programmes to meet rising demand for AI engineers, data scientists and semiconductor specialists.

Senior representatives from both sides emphasised that the agreements build on an expanding technology agenda that has gathered pace over the past two years. The United States has identified India as a key partner in diversifying supply chains for critical technologies, while New Delhi has sought greater access to advanced know-how and investment to support its domestic manufacturing ambitions.

The semiconductor dimension is central to the Pax Silica framework. Global shortages during the pandemic exposed structural weaknesses in chip production networks, prompting governments to reassess their dependence on a limited number of manufacturing hubs. India has since launched incentive schemes to attract chipmakers and component suppliers, positioning itself as a complementary node in the global value chain. Closer coordination with U. S. firms and research laboratories is expected to support technology transfer and design capabilities.

Artificial intelligence governance is another pillar of the collaboration. Policymakers in New Delhi have been working on a regulatory architecture that balances innovation with safeguards against misuse. The partnership with the United States is expected to facilitate dialogue on standards, testing protocols and ethical guidelines. Both countries have expressed support for international cooperation to ensure AI systems are transparent, accountable and aligned with human rights principles.

Industry leaders present at the summit pointed to the commercial opportunities arising from deeper integration. India’s digital economy has expanded rapidly, driven by widespread smartphone adoption and a thriving start-up ecosystem. U. S. technology companies view the market as both a testing ground for scalable AI applications and a source of skilled talent. Joint ventures and research collaborations are likely to accelerate as policy barriers are addressed.

Analysts say the agreements also carry geopolitical significance. As rival powers invest heavily in AI and semiconductor capabilities, technology has become intertwined with national security and economic resilience. By formalising cooperation through the Pax Silica Declaration and the AI Opportunity Partnership, New Delhi and Washington are signalling intent to shape global norms rather than react to them.

The AI Impact Summit in New Delhi brought together policymakers, technologists and academics from multiple countries, underscoring the growing prominence of the city as a convening platform for debates on digital governance. Discussions ranged from generative AI applications in healthcare and education to concerns over misinformation and algorithmic bias. The signing of the declaration and joint statement provided a tangible outcome to those deliberations.

Officials indicated that working groups would be established to translate the commitments into concrete projects, with timelines and measurable targets to be announced in due course. Engagement with private sector stakeholders and research universities is expected to be formalised through memoranda of understanding and funding calls.

By T N Ashok At the center of Bharat Mandapam, the chiselled, lotus-shaped convention complex that has become the theatre for India’s global ambitions, Prime Minister Narendra Modi stood for a “family photo” that looked less like a diplomatic formality and more like a merger of Silicon Valley and the Westphalian order. To his left […]

The article India Positions Itself As The AI World’s Third Pole Under PM Modi’s Active Leadership appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

OpenAI has announced a sweeping expansion of its global education strategy by forging deep partnerships with a group of India’s most influential higher education institutions to embed artificial intelligence tools, training and research into campus life and academic workflows. The initiative, unveiled in New Delhi this week, aims for institutional transformation by offering enterprise-grade AI access and structured integration support across disciplines including engineering, management, health sciences and creative industries.

The programme brings together six premier universities — Indian Institute of Technology Delhi, Indian Institute of Management Ahmedabad, All India Institute of Medical Sciences New Delhi, Manipal Academy of Higher Education, University of Petroleum and Energy Studies and Pearl Academy — under a coordinated effort to build AI fluency and responsible usage skills for students, faculty and staff. The roll-out will provide secure access to ChatGPT Edu, detailed onboarding programmes, faculty training and discipline-specific implementation guidance aligned with institutional policies.

This shift marks a deliberate departure from ad-hoc access to consumer AI tools toward embedding artificial intelligence as an academic backbone to teaching, research, evaluation and campus operations. OpenAI’s Head of Education for India and Asia Pacific, Raghav Gupta, said the collaboration reflects a broader need to close the gap between what AI tools are capable of and how they are actually used. He referenced projections that by 2030 a significant portion of core skills relied upon by workers globally will be redefined by AI, underscoring the urgency for deep institutional readiness.

At IIT Delhi, the partnership will focus on engineering-led innovation and applied research, integrating AI capabilities into project-based learning, coding, simulations and prototype development. The institute also plans OpenAI-supported hackathons and ‘Industry Days’ designed to link student innovation with India’s manufacturing and deep-technology ecosystem. IIM Ahmedabad intends to embed AI fluency into core management education — spanning strategy, finance, operations and public policy — with scope for certification pathways backed by the collaboration.

All India Institute of Medical Sciences New Delhi is positioning AI as a tool for medical education and clinical training, exploring applications in clinical documentation, simulation-based learning and evidence synthesis. Officials at the institute said prioritising safe, ethical deployment of AI in clinical settings will be critical to maintaining educational and professional standards. Manipal Academy of Higher Education will pursue multidisciplinary AI literacy across engineering, health sciences and business programmes, while UPES and Pearl Academy will tailor integration to applied innovation and creative workflow environments respectively.

OpenAI’s strategy extends beyond campuses to partnerships with major education technology platforms, including upGrad, PhysicsWallah and HCL GUVI. These collaborations aim to launch structured courses on AI fundamentals and practical ChatGPT applications targeting students and early-career professionals who are not formally enrolled in partner institutions. The move reflects a growing industry recognition that AI skills must be scaled across the broader learner base, not just within elite universities.

Experts in education and technology policy see this initiative as part of a larger global trend where leading artificial intelligence firms are moving from consumer-oriented models toward institutional engagement that shapes long-term adoption and usage norms. By embedding AI literacy into the frameworks of higher education, these alliances could influence curriculum design, research priorities and the preparation of graduates for an AI-driven economy.

Industry analysts note that India’s higher education system represents one of the world’s largest talent markets, with millions of students entering the workforce each year. Integrating advanced AI tools into academic settings could enhance learning outcomes, deepen research capacity and create new pathways for innovation across sectors. However, some critics caution that rapid adoption must be matched with robust ethical and governance frameworks to address concerns around data privacy, academic integrity and equitable access to technology.

While OpenAI estimates that this phase of the initiative will directly benefit over 100,000 students, educators and administrators across its core partner institutions over the coming year, independent observers emphasise that the broader impact will depend on how well universities and ed-tech partners can operationalise the technology within existing academic structures. They point to the need for ongoing investment in faculty development, infrastructure and policy frameworks that ensure AI augments rather than disrupts pedagogical goals.

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OpenAI’s chief executive Sam Altman has said that India now has 100 million weekly active users of ChatGPT, elevating the country to the position of the platform’s second-largest market globally after the United States and underscoring its growing influence in the artificial intelligence ecosystem. Altman disclosed the figure in an opinion piece published ahead of the Global AI Impact Summit 2026 in New Delhi, where government officials and global tech leaders are convening to discuss the future of AI and its integration into education, enterprise and public services.

This milestone reflects not just a vast user base but also a distinct pattern of adoption: students in India now represent the largest single demographic of ChatGPT users worldwide, according to Altman, who highlighted the role younger generations are playing in embedding generative AI into daily workflows for learning and productivity.

The 100 million figure forms a significant share of ChatGPT’s global weekly active user count, which stood at about 800 million as of October 2025 and is widely projected to edge closer to 900 million as platforms refine their offerings and expand reach. OpenAI’s decision to open an office in New Delhi in August 2025 and tailor pricing, including a lower-cost subscription tier later made free for a year, is seen as part of a strategy to deepen engagement in what many technology firms regard as a key growth market.

Altman underscored India’s demographic advantages, including a population exceeding one billion internet users and a large proportion of English speakers outside native English-speaking countries — factors that have made the country fertile ground for generative AI adoption. Many students have turned to ChatGPT for support with research, coding, examination preparation and language practice, reflecting a broader trend of digital tools being woven into educational routines.

Despite this surge, translating sheer user numbers into sustained economic returns poses challenges for AI firms. India’s price-sensitive market and uneven internet access complicate monetisation, causing some companies to adjust their strategies to balance affordability with revenue generation. OpenAI’s tailored pricing and promotional offers have helped lower entry barriers, but broader monetisation across emerging markets may require further innovation in business models.

The competitive landscape in India’s AI space is intensifying. Alphabet’s Google has made inroads with its Gemini AI suite, aggressively targeting younger users through free one-year subscriptions and partnerships with telecom firms to broaden adoption among students and professionals. These efforts are part of a broader contest among technology giants to capture share in a market that has vast potential due to its size and digital engagement.

The presence of global tech leaders and politicians at the New Delhi summit highlights the geopolitical and economic significance of India’s AI trajectory. Policy discussions span topics from responsible AI governance and equitable access to scaling infrastructure and boosting domestic innovation capacity. Indian policymakers, alongside industry executives, are advocating approaches that leverage technology to enhance education, public services and economic participation, while grappling with concerns over job displacement and digital divides.

Altman has outlined priorities for fostering inclusive AI growth in India, emphasising the need for practical digital literacy, robust computing infrastructure and frameworks that ensure ethical deployment. Such an approach, he argues, will empower users to harness AI’s potential effectively rather than just expanding access to tools.

The prominence of India’s student base on ChatGPT has broader implications for how AI products are developed and tailored. Feedback from a large and diverse user community helps shape feature enhancements and localisation efforts, influencing global development roadmaps. For companies like OpenAI, this dynamic underscores a strategic shift from traditional markets in Europe and North America toward regions where usage patterns reflect unique demographic and cultural needs.

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