AI regulations key to safe usage amid possible disruption: Tech experts
'If we truly want to move towards Viksit Bharat in 2047, that will be rooted in technological empowerment, inclusive economic growth, and digital sovereignty, and AI truly can be an accelerator,' said Sandip Patel, MD, IBM India & South Asia.
AI adoption in India is higher than in other countries, as per a global survey carried out by IBM, Patel said. However, this is more experimentation while adoption at scale still lags.Gaps in trust and confidence in the technology are a key reason for this, he said, adding that credible cases with the right ROI are also needed. IBM itself is adopting the technology, with 95% of its HR processes now being done using AI agents, said Patel.Alok B Lall, COO, Microsoft India & South Asia, said businesses should look at how to reshape their processes.
'As the world gets more agentic AI, we're hearing of terms like human-in-the-loop, human-on-the-loop and human-out-of-the-loop, as agents get to be more autonomous and they do most of the work by talking to other agents,' he said.
At the same time, enterprises need to empower their employees with AI, he added. 'It's not just about giving them a tool that helps them to use AI, it's fundamentally changing the way organisations are looking at talent – do you need somebody with 20 years of experience or you could get somebody with lesser experience with a powerful AI assistant?'AI is bringing a moment of irreversible acceleration where intelligence is not confined to machines but also gets embedded into life itself, said Debjani Ghosh, distinguished fellow, NITI Aayog and chief architect, NITI Frontier Tech Hub.'India will have a very key role to play in shaping this future,' said Ghosh. 'Our tradition of human centric thinking, inclusivity, respect for collective good - this must become our competitive advantage in a world that needs to get anchored in trust for its survival.'There will be bad actors who master the technology much faster, however, and countries need to build resilience to recover quickly when things go wrong, she added. Shiv Siddhant Kaul, co-chair, CII National AI Forum & MD, NICCO Engineering Services, said that CII's AI taskforce has been focusing on outreach and workshops to familiarise businesses with AI, especially MSMEs which may not be engaging much with the technology.There is also a generation gap in awareness and use of AI, he said, with the 48–55 year age group lagging.'For most companies, it's going to be existential because newer companies that are empowering younger people are going to figure out how to use AI, and our challenge will be making sure that the companies that are left behind don't leave a big-sized hole in our society in terms of employment,' Kaul said.Taranjeet Singh Bhamra, founder & CEO, AgNext Technologies, said that startups are embracing AI and tend to do this with precise use cases rather than broad experimentation given their relatively limited resources compared to large enterprises.When it comes to agriculture, AI can play a role in optimising inputs and measuring output quantity and quality, which would be needed to build algorithms that can help us increase food production, he said.
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Time of India
2 hours ago
- Time of India
Fast-tracking small modular reactors in India
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Indian Railways has also shown interest in nuclear power for railway network operation. The Atomic Energy Commission (AEC) envisions SMRs as 'crucial to India's strategy to achieve net-zero emissions, aligning with its broader Viksit Bharat vision'. While technological developments taking place in this field are quite encouraging, it is also important to ensure an enabling policy and regulatory framework. This would call for changes in the existing regulatory framework, which is designed for large reactors, considering the distinct design features of SMRs like size, safety features, etc. Global scenario Globally, the development of Small Modular Reactors (SMRs) is gaining momentum, with over 80 designs at various stages of advancement across 18 countries. Of these, 19 designs have reached advanced stages of deployment as of June 2025, led by countries such as Russia, China, Canada, the United States, South Korea, Denmark, and the United Kingdom. Russia and China have already operationalized SMRs, including land-based and floating units, particularly in remote and geographically challenging regions, some of which are with private sector participation. Recognizing the distinctive design features of SMRs, several countries, namely the United States, Canada, Russia, and others, are refining their policy and regulatory frameworks to accelerate the deployment of these technologies. For example, in the United States, the Nuclear Regulatory Commission (NRC) has established a dedicated regulatory pathway for these reactors. Complementary initiatives, such as the proposed Advanced Nuclear Reactor Generic Environmental Impact Statement (ANR GEIS) and the finalised Emergency Preparedness Requirements for SMRs, also support this process. Canada has outlined a comprehensive SMR roadmap, combining regulatory alignment with targeted funding to support early deployment. Similarly, the United Kingdom has adapted its Generic Design Assessment (GDA) process to accommodate SMRs, introducing a stepwise, flexible framework that enables earlier feedback and improved alignment with international standards. Policy and Regulatory landscape in India India's nuclear energy sector presently operates under a highly centralized regulatory and policy framework, primarily governed by the Atomic Energy Act of 1962 . This legislation vests exclusive authority in the Department of Atomic Energy (DAE) for all nuclear development, with the Nuclear Power Corporation of India Limited (NPCIL) being the sole entity authorised to construct and operate nuclear power plants for electricity generation. The Atomic Energy Regulatory Board (AERB) meticulously enforces safety and licensing norms, encompassing stringent siting criteria that mandate extensive exclusion and emergency planning zones, a multi-stage licensing process, mandatory environmental clearances, and strict radiation protection and waste management rules, consistent with IAEA guidelines and the Civil Liability for Nuclear Damage Act (CLNDA), 2010 . The existing landscape presents several challenges for the deployment of SMRs and private sector participation. These include relatively long gestation periods for regulatory approvals, high upfront capital investments required, site constraints for conforming to the prevailing emergency zone limits in potential application areas, liability provisions under CLNDA, lack of clarity on foreign investment limits, and return on investments. Key action areas From the foregoing, it is apparent that there is an urgent need for a development track that fosters innovation, modular rollout, and broader engagement across India's nuclear ecosystem. This should identify strategic applications such as industrial clusters, off-grid regions, and urban areas, while updating siting norms, safety codes, and grid integration criteria to reflect the unique characteristics of SMRs. Some of the other key areas to focus on would include recognising nuclear power as green energy, defining long-term bankable power purchase agreements, developing instruments for insurance, expediting regulatory clearances by standardizing of licensing procedures, leveraging strategic partnerships with countries to bring in proven nuclear technologies and best practices, continuing R&D for improving fuel usage and safety of reactors, developing 100 percent indigenous supply chain, increasing public awareness on safety aspects, training of personnel, etc. The framework should also align with broader goals of energy security and the country's net-zero commitments. With the right push - through policy, regulatory reforms, and public-private collaboration, SMRs can become a key pillar of India's clean energy strategy, supporting net-zero ambitions and national energy resilience. The political will and initiatives taken by the government to amend the legislation and engage with private players augur well for this. The need of the hour is a time-bound action plan. - K Ramanathan, Distinguished Fellow; Dr Arunendra Kumar Tiwari, Associate Fellow; and Ishita Bhar, Research Associate, The Energy and Resources Institute (TERI)
Economic Times
4 hours ago
- Economic Times
ETMarkets Smart Talk: Deploy, don't delay! Arun Patel advises long-term investors to stay invested in 2H2025
As market volatility tapers and India's economic fundamentals remain robust, long-term investors should stay the course rather than wait on the sidelines, says Arun Patel, Founder & Partner at Arunasset Investment Services, in this edition of ETMarkets Smart Talk. ADVERTISEMENT In a wide-ranging conversation, Patel shares his views on the market outlook for the second half of 2025, why domestic consumption remains a key theme, and how falling inflation and an accommodative RBI stance are creating a favourable environment for also outlines ideal asset allocation strategies for investors with a multi-decade horizon and highlights sectors like pharma, fintech, and quick commerce as emerging opportunities worth tracking. Edited Excerpts - Q) Thanks for taking the time out. We closed May on a high not but witnessed some volatility in June – is it geopolitical concerns weighing on sentiment?A) Thank you so much for having me. While June did see some volatility driven by geopolitical tensions, particularly the Israel–Iran conflict and worries about a wider regional escalation, these concerns turned out to be short-lived. A ceasefire held, and crucially, Iran refrained from blocking the Strait of Hormuz, likely recognising that such a move would have punished Asian economies more than its intended targets of Israel and the US. As a result, oil prices have returned to levels seen before the initial strikes. On the domestic front, India's macro fundamentals remain highly supportive. GDP for January–March rose to 7.4%, beating estimates, while May CPI eased to 2.82%. Forex reserves are near $700 billion, among the world's highest. Q4 FY25 saw a modest earnings recovery compared to the previous two quarters, with the BSE 500 delivering high single-digit revenue growth and around 10% net profit growth. ADVERTISEMENT Notably, excluding oil and gas, the broader BSE 500 universe recorded strong underlying PAT growth of about 12–14%, supported by healthy performance in pharma and consumer sectors.Q) As we are about to end 1H2025, what are your expectations or assumptions for the rest of the year?A) As we move into the second half of 2025, we expect consumption to drive growth. With inflation cooling, real purchasing power should rise meaningfully. ADVERTISEMENT The RBI's June 2025 policy statement revised its FY 2025–26 inflation forecast down to 3.7% from 4.0%, and we believe actual inflation could average even lower, around 2.5% over the next six months. This creates space for further monetary support, enhancing household spending private investment may continue to lag, particularly with global FDI flows subdued amid persistent policy uncertainty in key economies. Shifting regulations and trade frictions could discourage large investment decisions. ADVERTISEMENT Fortunately, India's domestic investor base has shown resilience, with steady flows even through recent volatility, providing a structural cushion for see the second half as a 'stock pickers' market,' where company-specific fundamentals will matter more than broad macro narratives. Investors should be nimble, focusing on quality businesses across all market caps. ADVERTISEMENT Overall, given strong domestic demand and policy stability, we expect Indian equities to surpass last year's highs before the year ends. Q) Are there any new or existing themes that are likely to do well in 2H2025? A) We believe domestic consumption will remain a standout theme in the second half of 2025. With inflation easing — the RBI now projects retail inflation at 3.7% for FY 2025–26, and we see the potential for an even lower 2.5% average — real purchasing power is set to rise, supporting stronger household addition, pharmaceuticals offer selective opportunities. Several names in the sector are trading at attractive valuations, with healthy demand outlooks both domestically and in export terms of new sectors - India's evolving stock markets present compelling opportunities across innovation-driven sectors that could reshape long-term investment financial services, fintech platforms have doubled their active client share since December 2020, while a leading insurance technology company saw online policy sales surge 14 times between FY19 and rapid adoption of UPI has transformed payment systems, expanding access and enabling a more inclusive financial commerce is also experiencing remarkable growth, with gross merchandise value projected to rise sixfold by FY27, reflecting changing consumer preferences and demand for hyperlocal automobiles, design innovation is helping leading passenger vehicle manufacturers gain market share and enhance customer India's steadily rising defence capital expenditure highlights opportunities in cost-effective, indigenous production as the sector innovation has driven economic growth, and these emerging segments demonstrate how India's dynamic innovation ecosystem can reward forward-looking investors seeking sustainable, long-term value while participating in a transformative growth story. Q) Geopolitical concerns weighed on crude oil in the past few weeks. How do you see crude oil moving in the near future and what could be the possible impact on earnings and GDP growth? A) Consensus forecasts place Brent crude in a $60–70/bbl range by late 2025, with WTI slightly lower. Barring a major shock, most analysts see prices trending modestly lower as supply remains adequate and global demand growth geopolitical risks — particularly around Middle Eastern chokepoints — could still push prices well above India, a stable or softer crude trajectory is supportive. Lower oil prices help manage the current account, reduce subsidy burdens, and keep inflation in check, thereby boosting consumer sentiment and real purchasing the corporate side, cheaper crude benefits margin profiles for energy-intensive sectors such as paints, chemicals, transport, and cement. Broadly, lower oil acts like a tax cut for the economy, freeing up resources to sustain GDP growth absent a fresh geopolitical flare-up, we see crude oil as more likely to support than undermine India's growth and corporate earnings over the next two quarters. Q) In terms of valuation comfort – which sectors are on your radar? A) In the current environment, we see attractive valuation opportunities in domestic consumption and pharmaceuticals. India's strong high-frequency indicators and its position as the world's fastest-growing major economy make consumption-driven businesses especially pharma, several companies are trading at reasonable valuations with promising near-term growth prospects, supported by robust demand and favourable export broadly, the market appears to be transitioning from a macro-driven rally to a stock picker's phase. Correlations across sectors have been unusually high in recent quarters, but we believe we are approaching a turning point where company-specific fundamentals will take precedenceIn this scenario, bottom-up approaches — including focused mutual funds and other concentrated strategies — are well-placed to capture opportunities. Q) How are FIIs looking at India amid falling interest rates globally? A) As of 28 June 2025, Foreign Institutional Investors have recorded total equity outflows of around ₹1.23 lakh crore year-to-date, driven by global volatility and profit-booking earlier in the the tide has clearly begun to turn. FIIs have been net buyers for four consecutive months — March, April, May, and June — with June alone seeing net inflows of approximately ₹8,320 crore as of June total, FIIs have brought in about ₹23,000 crore across these four months, signaling renewed FIIs are favouring financials, energy, and select consumption plays, while remaining cautious on IT, auto, and FMCG due to global growth uncertainties and relatively rich market flows have moderated after a record ₹1.24 trillion of FPI purchases last year, as higher US yields and a firmer dollar weigh on India's robust macro fundamentals — 7%+ GDP growth, contained inflation, and stable policy — remain a powerful global strategists like Morgan Stanley, JP Morgan, and Goldman Sachs maintaining an 'overweight' on India and earnings growth forecasts of 14–17% through FY27, the improving FII trend should continue into H2 2025. Q) If someone plans to allocate say Rs 10 lakh (30-40 years) in 2H2025 – should they put fresh money to work? What is the ideal asset allocation? A) If someone aged between 30–40 is looking to invest Rs 10 lakh in the second half of 2025, it would generally make sense to deploy the funds rather than waiting on the a long investment horizon (20+ years until retirement, for example), equities tend to outperform other assets, and delaying can mean missing out on compounding.A reasonable asset allocation could be:• 70–80% in equities — spread across large-cap, flexicap, and some mid/small-cap funds to balance stability and growth• 20–30% in debt — such as high-quality debt funds, PPF, or tax-saving bonds to provide stability and liquidityIf the investor is new to equity investing, a staggered approach (for example, investing over 3–6 months via STP/SIP) can help manage market risk appetite, future financial commitments, and emergency reserves should be considered before finalising the allocation. Q) How is the rate trajectory looking from the RBI? Do you think the front-loaded 50 bps cut was enough to boost consumption? A) The RBI has shifted decisively toward an accommodative stance in 2025, cutting the repo rate by 100 basis points to 5.5% and announcing a 100 basis points CRR reduction from 4.5% to 3.5%, phased from front-loaded 50 bps repo cut was aimed at swiftly reducing borrowing costs for banks, which should translate into cheaper loans for households and businesses, encouraging lowering the CRR will release about ₹2.5 lakh crore into the banking system, expanding credit flow. With inflation relatively low, purchasing power is preserved, further supporting RBI's strong pivot recognises that consumption will be the key driver of economic growth in the near term, especially as investment may remain subdued due to policy uncertainties. While the 50-bps front-loaded cut should help, its impact will likely build gradually as confidence improves, and credit transmission strengthens over the coming quarters. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
6 hours ago
- Time of India
ETMarkets Smart Talk: Deploy, don't delay! Arun Patel advises long-term investors to stay invested in 2H2025
As market volatility tapers and India's economic fundamentals remain robust, long-term investors should stay the course rather than wait on the sidelines, says Arun Patel, Founder & Partner at Arunasset Investment Services, in this edition of ETMarkets Smart Talk. In a wide-ranging conversation, Patel shares his views on the market outlook for the second half of 2025, why domestic consumption remains a key theme, and how falling inflation and an accommodative RBI stance are creating a favourable environment for equities. He also outlines ideal asset allocation strategies for investors with a multi-decade horizon and highlights sectors like pharma, fintech, and quick commerce as emerging opportunities worth tracking. Edited Excerpts - Q) Thanks for taking the time out. We closed May on a high not but witnessed some volatility in June – is it geopolitical concerns weighing on sentiment? A) Thank you so much for having me. While June did see some volatility driven by geopolitical tensions, particularly the Israel–Iran conflict and worries about a wider regional escalation, these concerns turned out to be short-lived. A ceasefire held, and crucially, Iran refrained from blocking the Strait of Hormuz, likely recognising that such a move would have punished Asian economies more than its intended targets of Israel and the US. As a result, oil prices have returned to levels seen before the initial strikes. On the domestic front, India's macro fundamentals remain highly supportive. GDP for January–March rose to 7.4%, beating estimates, while May CPI eased to 2.82%. Forex reserves are near $700 billion, among the world's highest. Q4 FY25 saw a modest earnings recovery compared to the previous two quarters, with the BSE 500 delivering high single-digit revenue growth and around 10% net profit growth. Notably, excluding oil and gas, the broader BSE 500 universe recorded strong underlying PAT growth of about 12–14%, supported by healthy performance in pharma and consumer sectors. Q) As we are about to end 1H2025, what are your expectations or assumptions for the rest of the year? A) As we move into the second half of 2025, we expect consumption to drive growth. With inflation cooling, real purchasing power should rise meaningfully. The RBI's June 2025 policy statement revised its FY 2025–26 inflation forecast down to 3.7% from 4.0%, and we believe actual inflation could average even lower, around 2.5% over the next six months. This creates space for further monetary support, enhancing household spending capacity. However, private investment may continue to lag, particularly with global FDI flows subdued amid persistent policy uncertainty in key economies. Shifting regulations and trade frictions could discourage large investment decisions. Fortunately, India's domestic investor base has shown resilience, with steady flows even through recent volatility, providing a structural cushion for markets. We see the second half as a 'stock pickers' market,' where company-specific fundamentals will matter more than broad macro narratives. Investors should be nimble, focusing on quality businesses across all market caps. Overall, given strong domestic demand and policy stability, we expect Indian equities to surpass last year's highs before the year ends. Q) Are there any new or existing themes that are likely to do well in 2H2025? A) We believe domestic consumption will remain a standout theme in the second half of 2025. With inflation easing — the RBI now projects retail inflation at 3.7% for FY 2025–26, and we see the potential for an even lower 2.5% average — real purchasing power is set to rise, supporting stronger household spending. In addition, pharmaceuticals offer selective opportunities. Several names in the sector are trading at attractive valuations, with healthy demand outlooks both domestically and in export markets. In terms of new sectors - India's evolving stock markets present compelling opportunities across innovation-driven sectors that could reshape long-term investment strategies. In financial services, fintech platforms have doubled their active client share since December 2020, while a leading insurance technology company saw online policy sales surge 14 times between FY19 and FY25. The rapid adoption of UPI has transformed payment systems, expanding access and enabling a more inclusive financial ecosystem. Quick commerce is also experiencing remarkable growth, with gross merchandise value projected to rise sixfold by FY27, reflecting changing consumer preferences and demand for hyperlocal delivery. In automobiles, design innovation is helping leading passenger vehicle manufacturers gain market share and enhance customer loyalty. Meanwhile, India's steadily rising defence capital expenditure highlights opportunities in cost-effective, indigenous production as the sector modernises. Historically, innovation has driven economic growth, and these emerging segments demonstrate how India's dynamic innovation ecosystem can reward forward-looking investors seeking sustainable, long-term value while participating in a transformative growth story. Q) Geopolitical concerns weighed on crude oil in the past few weeks. How do you see crude oil moving in the near future and what could be the possible impact on earnings and GDP growth? A) Consensus forecasts place Brent crude in a $60–70/bbl range by late 2025, with WTI slightly lower. Barring a major shock, most analysts see prices trending modestly lower as supply remains adequate and global demand growth softens. However, geopolitical risks — particularly around Middle Eastern chokepoints — could still push prices well above consensus. For India, a stable or softer crude trajectory is supportive. Lower oil prices help manage the current account, reduce subsidy burdens, and keep inflation in check, thereby boosting consumer sentiment and real purchasing power. On the corporate side, cheaper crude benefits margin profiles for energy-intensive sectors such as paints, chemicals, transport, and cement. Broadly, lower oil acts like a tax cut for the economy, freeing up resources to sustain GDP growth momentum. Overall, absent a fresh geopolitical flare-up, we see crude oil as more likely to support than undermine India's growth and corporate earnings over the next two quarters. Q) In terms of valuation comfort – which sectors are on your radar? A) In the current environment, we see attractive valuation opportunities in domestic consumption and pharmaceuticals. India's strong high-frequency indicators and its position as the world's fastest-growing major economy make consumption-driven businesses especially compelling. Within pharma, several companies are trading at reasonable valuations with promising near-term growth prospects, supported by robust demand and favourable export opportunities. More broadly, the market appears to be transitioning from a macro-driven rally to a stock picker's phase. Correlations across sectors have been unusually high in recent quarters, but we believe we are approaching a turning point where company-specific fundamentals will take precedence In this scenario, bottom-up approaches — including focused mutual funds and other concentrated strategies — are well-placed to capture opportunities. Q) How are FIIs looking at India amid falling interest rates globally? A) As of 28 June 2025, Foreign Institutional Investors have recorded total equity outflows of around ₹1.23 lakh crore year-to-date, driven by global volatility and profit-booking earlier in the year. However, the tide has clearly begun to turn. FIIs have been net buyers for four consecutive months — March, April, May, and June — with June alone seeing net inflows of approximately ₹8,320 crore as of June 28. In total, FIIs have brought in about ₹23,000 crore across these four months, signaling renewed confidence. Sectorally, FIIs are favouring financials, energy, and select consumption plays, while remaining cautious on IT, auto, and FMCG due to global growth uncertainties and relatively rich valuations. Debt market flows have moderated after a record ₹1.24 trillion of FPI purchases last year, as higher US yields and a firmer dollar weigh on appetite. Nevertheless, India's robust macro fundamentals — 7%+ GDP growth, contained inflation, and stable policy — remain a powerful draw. With global strategists like Morgan Stanley, JP Morgan, and Goldman Sachs maintaining an 'overweight' on India and earnings growth forecasts of 14–17% through FY27, the improving FII trend should continue into H2 2025. Q) If someone plans to allocate say Rs 10 lakh (30-40 years) in 2H2025 – should they put fresh money to work? What is the ideal asset allocation? A) If someone aged between 30–40 is looking to invest Rs 10 lakh in the second half of 2025, it would generally make sense to deploy the funds rather than waiting on the sidelines. Over a long investment horizon (20+ years until retirement, for example), equities tend to outperform other assets, and delaying can mean missing out on compounding. A reasonable asset allocation could be: • 70–80% in equities — spread across large-cap, flexicap, and some mid/small-cap funds to balance stability and growth • 20–30% in debt — such as high-quality debt funds, PPF, or tax-saving bonds to provide stability and liquidity If the investor is new to equity investing, a staggered approach (for example, investing over 3–6 months via STP/SIP) can help manage market volatility. Finally, risk appetite, future financial commitments, and emergency reserves should be considered before finalising the allocation. Q) How is the rate trajectory looking from the RBI? Do you think the front-loaded 50 bps cut was enough to boost consumption? A) The RBI has shifted decisively toward an accommodative stance in 2025, cutting the repo rate by 100 basis points to 5.5% and announcing a 100 basis points CRR reduction from 4.5% to 3.5%, phased from September. The front-loaded 50 bps repo cut was aimed at swiftly reducing borrowing costs for banks, which should translate into cheaper loans for households and businesses, encouraging spending. Meanwhile, lowering the CRR will release about ₹2.5 lakh crore into the banking system, expanding credit flow. With inflation relatively low, purchasing power is preserved, further supporting consumption. The RBI's strong pivot recognises that consumption will be the key driver of economic growth in the near term, especially as investment may remain subdued due to policy uncertainties. While the 50-bps front-loaded cut should help, its impact will likely build gradually as confidence improves, and credit transmission strengthens over the coming quarters.
