AI could contribute over $500 bn to India’s economy by 2030: IBM-IndiaAI study
Artificial intelligence (AI) could contribute more than $500 billion to India’s economy by 2030, according to a joint study by IBM and IndiaAI, which also said businesses increasingly see AI as a key driver of the country’s economic growth. The report, ‘From promise to power: How AI is redefining India’s economic future’, said that four in five business leaders believe AI investments will directly influence India’s GDP growth, while 73 per cent expect India to emerge as a leading global AI nation by 2030. The study, however, highlighted a major execution gap, with 72 per cent of surveyed organisations acknowledging that they are behind global peers in AI adoption. It said bridging this divide “will be pivotal in determining India’s leadership in the global AI economy."
The report also pointed to major infrastructure and data challenges. Around 57 per cent of respondents cited uneven data quality as a hurdle, while 77 per cent flagged the lack of “accessible, affordable, and secure cloud infrastructure" as a major barrier to AI readiness.
On the talent front, the study said only about 30 per cent of employees currently possess the AI literacy levels businesses require, but this figure would need to rise to nearly 57 per cent by 2030. It estimated that India would need more than 350 million AI-skilled talent by the end of the decade.
Cabinet clears Rs 37,500 crore coal gasification incentive scheme
The Union Cabinet on Wednesday approved a Rs 37,500 crore coal gasification incentive scheme to promote surface coal and lignite gasification projects, which is aimed at reducing dependency on imported dry fuel amid growing concerns over energy security and supply disruptions owing to the West Asia crisis. The scheme seeks to accelerate India’s target of gasifying 100 million tonnes of coal by 2030, with the government saying that it will support projects capable of gasifying around 75 million tonnes of coal and lignite and is expected to attract investments between Rs 2.5 lakh crore and Rs 3 lakh crore across nearly 25 projects.
Coal gasification involves converting coal or lignite into synthesis gas or syngas, which can then be used to produce fuels, fertilisers, synthetic natural gas and chemicals domestically.
Official sources said that the scheme would generate around 50,000 direct and indirect jobs, particularly in coal-bearing regions. It also estimated annual revenue generation of around Rs 6,300 crore from coal and lignite utilisation under the scheme, excluding additional downstream revenues from goods and services tax (GST) and other levies. Under the scheme, financial incentives will be provided at up to 20 per cent of the cost of plant and machinery for eligible projects. However, incentives for a single project will be capped at Rs 5,000 crore, while incentives for any single entity group across projects will be capped at Rs 12,000 crore. The incentive for any single product category, except synthetic natural gas and urea, has been capped at Rs 9,000 crore. The government said project selection would be carried out through a transparent competitive bidding process based on the benchmarking of project cost, coal input and syngas output. The incentive will be disbursed in four equal instalments linked to project milestones.
TVK government clears floor test
- The result: Chief Minister C Joseph Vijay’s four-day-old Tamilaga Vettri Kazhagam (TVK) government won the Tamil Nadu assembly trust vote by 144 to 22 on Wednesday.
- The threshold: The government comfortably cleared the 118-majority mark, ensuring legislative stability for the next six months.
- TVK strength: Out of its 108 won seats, the party had 105 active voting MLAs during the “count and assess" division-wise vote.
Split in opposition ranks
- AIADMK fracture: Opposition leader Edappadi K Palaniswami (EPS) commanded 22 MLAs to vote against the government, while the rebel C Ve Shanmugam-SP Velumani faction defied orders and voted in favour of TVK.
- Coalition support: Vijay secured vital backing from the Congress, VCK, Left, IUML, and expelled AMMK MLA S Kamaraj.
- Abstentions & walkouts: The primary opposition DMK (59 MLAs) staged a walkout, while the PMK (4 MLAs) and the lone BJP member abstained.
Quotes & Accusations
- CM Joseph Vijay: Countered horse-trading allegations from EPS and Premalatha Vijayakanth by asserting, “This government runs at horse-speed, not through horse-trading."
- Udhayanidhi Stalin (DMK): Attacked the longevity of the government, stating TVK was rejected by 65% of voters and had to cobble up a majority using borrowed MLAs.
- C Ve Shanmugam (AIADMK Rebel): Defended supporting TVK by stating both parties share an ideological stance against the DMK as an “evil force," denying rumors of trading for ministerial berths.
