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AI requires a regulatory model like SEBI

India will develop standards to regulate artificial intelligence and act like AI regulator SEBI, said Sanjeev Sanyal, a member of the Prime Minister's Economic Advisory Council. Stating that the model of self-regulation and bureaucratic regulation is unlikely to work in the artificial intelligence space, he suggested that India could consider having a regulator, which understands the technology and looks at how it is evolving. An artificial intelligence system requires a system like SEBI. You need a regulator who understands the technology and pays attention to how it is evolving, rather than wasting time predicting where it will go. As a company has a board, which is responsible. Just as business models and accounts need to be understood, there is also a need to explain what artificial intelligence is doing.

2 billion square feet of additional healthcare real estate needed

India needs 2 billion square feet of healthcare space to cater to its current population of 1.42 billion, says a report. Currently, India is facing a shortfall of 2.4 million beds to meet the standards set by the World Health Organization (WHO). According to the Global Healthcare Report, India's bed-to-population ratio, including private and public facilities, is 1.3 per 1,000. According to WHO, it should be 3 per 1,000. It is much lower than 13 in Japan, 4.3 in China, 2.9 in the United States (USA) and 2.5 in the United Kingdom (UK). This shortage is crucial given the rapid growth of India's healthcare market. In 2022, the size of the Indian healthcare market is estimated to be $372 billion. There are two factors contributing to the rapid expansion in the size of the healthcare industry. First, India's population growth (1.42 billion), which, according to the World Bank, has already surpassed China's (1.41 billion). Second, India being one of the top destinations for healthcare tourism, the sector needs more investment.

Increase in India's trade amid global recession

India's exports to several countries like Netherlands, Saudi Arabia, Brazil, Indonesia have increased steadily during the last 5 years from FY2019 to FY2023. According to a PHD Chamber of Commerce and Industry report, these countries are emerging as India's export hubs. These countries have recorded high average growth in trade with India amid the global economic slowdown. The 10 fastest growing export hubs are Togo (73 percent), Netherlands (36 percent), Brazil (28 percent), Israel (27 percent), Indonesia (24 percent), Turkey (22 percent), Australia (20 percent). ), South Africa (19 percent), Saudi Arabia (16 percent) and Belgium (13 percent). Exports picked up sharply in October 2023 after a short period of decline till September 2023 due to uncertainty and fear of recession in many developed countries.

The issue of cyber security will be discussed with the banks

The finance ministry will meet chief executives of public sector banks next week to discuss cyber security issues. The meeting is being held in view of the Rs 820 crore fraud committed with Kolkata-based UCO Bank earlier this month. Sources involved in the matter said the finance ministry has already asked banks to review their digital systems and measures related to cyber security. During the Diwali week, UCO Bank faced an IMPS fraud. The bank also approached the Central Bureau of Investigation to investigate any attempt to disrupt the functioning of the lender's IMPS service, including cyber attacks. This type of fraud has happened twice before with some other public sector banks, but the amount was so small that it was not taken seriously.

ITeS poised for steady growth amid global recession

The Information Technology Enabled Services (ITeS) industry, which is estimated to grow 10 percent in dollar terms to $46 billion, is expected to maintain its pace with a growth of 7-9 percent in the current fiscal. A healthy order book will have an impact despite the global slowdown. Because spending in this industry is largely non-discretionary. This bodes well for micro, small and medium enterprises (MSMEs), which account for 30-40 percent of the industry and are key in segments such as customer relationship management, transaction services and knowledge process outsourcing. plays a role. A further tailwind is expected from the travel segment, which is poised for double-digit revenue growth, further fueling ITeS growth. The ITES employee base, however, is expected to grow by 0-1 percent as companies take a cautious approach due to delayed discretionary projects, companies prioritize internal programs for cost optimization and efficiency improvement, emphasizing skill-based augmentation over skills.

GenAI will help achieve the goal

A growing number of companies are embracing the benefits of incorporating sustainable business practices, according to a new report from Capgemini Research Institute. 69 percent of Indian organizations believe that digital technologies, especially Generative AI (GenAI), will help them achieve sustainability goals, a report has said. About 69 percent of Indian organizations believe that GenAI will play an important role in their sustainability transformation efforts, compared to 59 percent globally. GenAI's ability to analyze large amounts of data is transforming environmental, social, and governance strategies, enabling precise insights for sustainability decisions. GenAI algorithms can be used to optimize the design of buildings, infrastructure and products.

NBFCs and SFBs should be cautious in giving loans

Non-Banking Financial Companies (NBFCs) and Small Finance Banks (SFBs) need to be cautious while giving loans as per Reserve Bank of India's guidelines, Finance Minister Nirmala Sitharaman said. NBFCs and small finance banks should not overstep their bounds in overzealousness. Enthusiasm is good, but sometimes people get a little hard to digest. Therefore, as a precautionary measure, RBI has warned small finance banks and NBFCs to be cautious so that they do not face risks later. In view of the increase in unsecured loans like personal loans and credit card loans, the RBI tightened the rules for such loans. RBI has increased the risk weight for unsecured consumer loans and credit cards by 25 basis points to 125-150 percent. Analysts say this will increase banks' capital costs. The central bank's crackdown on unsecured loans has been taken as a precaution to ensure financial stability.