Daily News - Friday, 30 May 2025

India poised to become ‘data capital of the world’: Jyotiraditya Scindia (The Economic Times)

⁠India is on track to become the “data capital of the world” within five years, driven by a 97% drop in data costs, from ₹287 to ₹9 per GB over the last decade, making India’s data at just 11 cents per GB among the cheapest globally, at 5% of the world average. Speaking at the CII Annual Business Summit 2025, Communications Minister Jyotiraditya Scindia highlighted India’s transformation into a digital-first economy, with mobile subscribers growing to 1.2 billion, internet users to 974 million, and broadband connections to nearly 940 million. He also underscored India’s technological self-reliance through the development of an indigenous 4G telecom stack, now deployed across 94,000 BSNL towers, which has helped the state-run telecom operator post a net profit for two consecutive quarters after 18 years.

⁠Railways to create sandbox for startups: Ashwini Vaishnaw (The Economic Times)

Indian Railways is set to launch a startup sandbox policy within two months, allowing innovative ideas to be tested in a controlled environment before broader implementation, said Minister Ashwini Vaishnaw at the CII Summit, citing successful early experiences with startup-driven procurement. Highlighting India’s rapid progress in electronics, Vaishnaw announced the first made-in-India semiconductor chip will debut this year, marking a pivotal moment in the country’s manufacturing journey. Additionally, under the IndiaAI Mission, the government plans to expand its AI infrastructure by adding 14,000 GPUs to the current 18,000-strong compute cluster, reinforcing its dual focus on manufacturing and services as engines of future growth.

⁠Chinese toy, gold smugglers in crosshairs of central govt (mint)

The Indian government is formulating a strategy to crack down on a growing network of “import carriers” who smuggle banned or excess goods like gold, electronics, and toys—especially from hubs like Dubai, Hong Kong, and Guangzhou—by misusing customs duty exemptions that currently allow up to ₹50,000 (or ₹1 lakh from West Asia) worth of goods duty-free. To counter this, the commerce ministry may urge the finance ministry to amend the Customs Act, tighten digital declarations via the Atithi app using AI profiling, and impose limits on duty-free use by frequent flyers, while enhancing collaboration with customs and airport authorities to track repeat offenders. The scale is massive, with industry estimates suggesting 700 kg of gold smuggled daily, translating to nearly $10 billion in annual losses, despite over 1,300 kg of gold already seized in 2023–24, prompting experts to advocate for a liberal trade regime to undercut the smuggling economy.

⁠India must increase labour productivity to become a developed nation, says Niti Aayog's Suman Bery (mint)

Improving labour productivity is vital for India’s ambition to become a developed nation by 2047, said NITI Aayog Vice Chairman Suman Bery, noting that India’s workforce is three times the size of the U.S. but delivers only half its economic output in PPP terms, highlighting the urgent need for more productive, higher-quality jobs—especially for women and youth. Addressing the CII annual summit, Bery emphasized that sustainable growth hinges on absorbing underutilized labour and raising real wages, with the private sector playing a key role in job creation amid aspirations rising faster than income. While India’s productivity is improving, it still lags behind China and ASEAN nations, prompting calls for deeper trade integration, entry into high-value sectors, and broader competitiveness across manufacturing and services through a strategic mix of self-reliance and global engagement.

⁠Big-ticket FTAs: Goyal to lead trade push in Europe (mint)

⁠India is accelerating its international trade outreach with Commerce Minister Piyush Goyal set to lead high-level business delegations to France and Italy, reinforcing its FTA strategy and deepening economic ties with key partners amid a $100 billion FDI commitment from EFTA countries, which is expected to trigger up to $500 billion in total investment over 15 years. The country has already finalized FTAs with the UAE and Australia, concluded talks with the UK, and signed an agreement with EFTA in March 2023, while negotiations with the US, EU, and New Zealand are progressing steadily. These engagements reflect India’s expanding global trade footprint and its central role in reconfiguring global supply chains, as Goyal prepares to hold further discussions with trade leaders in Paris and Italy next week.