Emphasising that the Indian startup ecosystem has positioned itself as a formidable force across industries worldwide, Department for Promotion of Industry and Internal Trade (DPIIT) joint secretary Sanjiv Singh said that the second edition of Startup Mahakumbh will help foster connections between startup ecosystem stakeholders across borders.

Speaking on the sidelines of an evening hosting ambassadors from 30 countries ahead of the upcoming Startup Mahakumbh, the DPIIT joint secretary added that the Startup Mahakumbh is the largest startup congregation of its kind in the world, and the event helped showcase India’s startup revolution on a global scale.

“Ambassadors, consulates, deputy high commissioners and many other official representatives from countries such as Italy, Spain, Brazil, South Korea, Sri Lanka among others will help in bringing global networks to Indian startups, and Indian startups will have the opportunity to foster collaboration with global stakeholders,” DPIIT joint secretary Sanjiv Singh added. 

The Mahakumbh is the latest initiative from the DPIIT, which has held discussions to spur foreign direct investments (FDI) into Indian startups. The department has signed several MoUs in the past two months and has also met representatives of various pension funds, private equity (PE) and venture capital (VC) firms to boost investment inflow into India. 

With support from the DPIIT and other ecosystem stakeholders, the central government also launched the BHASKAR (Bharat Startup Knowledge Access Registry) platform for startups last year, which has seen over 5 Lakh registrations from 28 states. 

The preview event saw key delegates from the Ministry of External Affairs (MEA), Ambassadors to the Argentinian and Azerbaijan’s Embassy, Head of the Economic and Innovation Department of Italy, Head of International Cooperation from Mexico, among many other dignitaries attended the event, where the organising committee behind the Startup Mahakumbh outlined the agenda for the event. 

Sanjeev Bikhchandani, cofounder and executive vice chairman, Info Edge as well as part of the organising committee of Startup Mahakumbh, added, “Startup Mahakumbh embodies India’s dynamic spirit of innovation and entrepreneurship, helping Indian startups scale internationally. By inviting global innovators to explore the limitless opportunities in Bharat, is a powerful signal of the shared vision we hold for a truly interconnected startup landscape.”

The second edition of Startup Mahakumbh will be held from April 3-5, 2025 and as in the past edition, we can expect large pavilions for AI, deeptech and cybersecurity, healthtech, agritech, climate tech, D2C, fintech, gaming, and entertainment, B2B solutions, manufacturing, defence, spacetech, mobility, incubators & accelerators. 

Arti Bhatnagar, additional secretary and financial advisor for DPIIT, added, “This marks a significant milestone in India’s startup journey, where global collaboration takes centre stage as thought leaders, investors, and innovators from over 30 countries have joined hands to foster deeper connections and exchange knowledge. As we move towards building a self-reliant and innovative Viksit Bharat by 2047, such engagements will play a crucial role in driving India’s entrepreneurial ecosystem to new heights on the global stage.”

Stage Set For Startup Mahakumbh 2025

Organising committee member and Rukam Capital managing partner Archana Jahagirdar added that the second edition will look to plug the many gaps in the market today for Indian startups, including access to global markets, exposure to new avenues of growth and more. “Over the years, we have seen Indian startups visit tech shows around the world, but this is the first time that the leading startups from 50+ countries will potentially be under one roof in India,” she added.

Jahagirdar also mentioned that despite the clear trend in the market towards AI and deeptech, the Startup Mahakumbh will be a democratic platform for Indian startups across sectors, and no particular sector will be given preference at the upcoming event. 

The inaugural edition of the government-backed flagship startup event saw close to 50,000 visitors engaging with more than 1,300 exhibitors including soonicorns, and unicorns. It also hosted 300+ incubators and accelerators and 200+ leading angel investors, VC firms, and family offices.

“By fostering an innovation-driven culture, this evening will play an integral role in shaping the future of disruptive Indian entrepreneurs. With delegates from over 50 countries, Startup Mahakumbh will be an unprecedented opportunity to showcase the breadth and potential of India’s startup ecosystem on a global stage,” added Amardeep Singh Bhatia, secretary, DPIIT.

The Startup Mahakumbh is led by FICCI, ASSOCHAM, IVCA, NASSCOM and Bootstrap Advisory & Foundation; and supported by SIDBI, GEM, ECGC and DPIIT Startup India.

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Pawan Goenka, chairman of Indian Space Promotion and Authorisation Centre (IN-SPACe), has confirmed that the final draft of the space bill is ready and is going through the approval process. 

However, he refrained from providing a timeline for its passage.

Goenka was addressing the “Bharat Space Conclave 2025” in New Delhi today (March 12). 

He was talking about the “Space Activities Bill,” which was first discussed in 2017 to establish a legal framework to regulate and promote space activities in India– specifically focussed towards private players in the sector.

However, since then, there has not been much announcement from the government’s end. 

“I have stopped giving a target date when something is not in my full control, but the final draft is ready,” Goenka said.

However, he also emphasised that the absence of a space bill has not hindered the ongoing space activities. 

The IN-SPACe chairman also highlighted developments in space education, underlining that several engineering colleges are introducing space-related courses, with a goal of producing 2,000 space graduates over the next five years.

Regarding foreign direct investment (FDI), Goenka acknowledged that while the policy is in place, guidelines for government-approved investments are still being finalised.

Notably, the government last year approved 100% FDI for certain subsectors of the spacetech industry. However, it is pertinent to note that, under the current rules, FDI for establishment and operation of satellites is only permitted via the government approval route.

On infrastructure, he said that ISRO’s facilities are accessible to the private sector, and IN-SPACe is expanding its technical center with a INR 300 Cr investment. Additionally, a second launch center in Kulasekarapattinam is under development.

Goenka stressed that the Indian space sector has moved at “rocket speed” in the last three to four years, achieving remarkable milestones both on the technical front, led by ISRO, and on the commercial side, driven by private enterprises. 

However, according to him, a major challenge remains in securing sufficient funding for these deeptech startups, which require significant investments and long development timelines. 

The chairman also acknowledged that while last year saw $130 Mn in investments in the space sector, there is still untapped potential. He expressed optimism about the expected increase in funding, citing the upcoming INR 1,000 Cr VC fund that is nearing implementation. 

Notably, IN-SPACe has played an important role in influencing the Centre to set up an INR 1,000 Cr VC fund for the spacetech sector.

He said that investor confidence is key and that demonstrating tangible outcomes will encourage further capital inflow.

Notably, IN-SPACe recently shortlisted six out of nine bidders to build and manage a space-based earth observation (EO) system.

The selected entities include consortiums of SatSure, Pixxel, Dhruva Space and PierSight; Ananth Technologies, Solar Group and XDLINX; and Bharat Electronics Ltd and Sisir Radar.

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The Ministry of Electronics and Information Technology (MeitY) has recommended setting up a dedicated artificial intelligence (AI) governance board to review and authorise AI applications. 

The recommendation was part of the “Competency Framework for AI for Public Sector Officials”: launched by the IndiaAI Mission during the launch of AIKosha on March 6.

The framework also called for empowering the proposed board with powers to ensure all AI initiatives align with local and international “legal instruments” and ensure such projects address societal issues and ethical considerations. 

“Establish a dedicated AI governance board with the objective of reviewing and authorising AI applications… It could also play a crucial role in providing oversight and guidance throughout the AI lifecycle. The panel will provide nuanced recommendations, guiding projects to not only meet technical benchmarks but also effectively address societal issues and ethical considerations,” read the document. 

Additionally, the report also called for setting up an “AI Ethics Committee” to design and integrate standard AI practices into all stages of the project lifecycle. The ministry also called on public sector organisations to implement a strong framework for identifying, evaluating, and reducing risks in their AI systems. 

While pitching for implementing robust privacy and data protection protocols in AI systems, the framework also urged all government ministries to establish a special vertical to oversee collection, storage, processing, and sharing of data. 

The framework also underscored the need for the following:

• Prioritising public-private partnerships, international cooperation, and strong governance structures to spur innovation 
• Promoting partnerships between startups and big businesses to improve the usefulness of AI in public services
• Encouraging interdepartmental cooperation within government organisations to exchange knowledge, obstacles, and achievements in implementing AI 
• Ensuring that the process of procurement of AI solutions is transparent
• Creating comprehensive AI deployment playbooks
• Establishing comprehensive programmes for AI literacy and skills development 
• Engaging stakeholders through digital platforms and public forums to promote openness and foster public trust in AI initiatives
• Implementing a comprehensive approach, comprising continuous monitoring, and taking measures that enhance transparency and accountability

Overall, the competency framework outlines several key goals and objectives including providing a foundational understanding of AI, defining necessary competencies for public sector officials, enhancing awareness of emerging technologies and identifying integration opportunities for improved service delivery among others. 

Notably, the call to set up an AI governance board appears to be a redux of the Centre’s similar plans last year. In 2024, MeitY directed AI platforms to seek its permission before launching any AI product in the country but the plan was later shelved amid public outcry. 

This comes at a time when AI continues to see rapid adoption in the country. To leverage this and spur innovation in the sector, MeitY last week launched the IndiaAI Compute Portal, which will offer affordable AI compute services, a unified datasets platform AIKosha, and an accelerator programme for homegrown AI startups. 

The announcements were part of the larger INR 10,300 Cr IndiaAI Mission, approved by the Union Cabinet in 2024, which aims to make the country an AI hub through strategic partnerships between both public and private sectors. 

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With digital payments on the rise in the country, bankers have reportedly sent a proposal to the Centre for the reintroduction of merchant discount rate (MDR) on transactions made through UPI and RuPay debit cards.

MDR is a fee that a bank charges merchants for processing payments in real time. At present, lenders provide these services to merchants free of cost, resulting in huge revenue loss.

Lenders have put forth a formal proposal to the Union government to bring back MDR on UPI payments for large merchants whose annual GST turnover exceeds INR 40 Lakh, ET reported, citing sources.

Based on the proposal, the Centre may also introduce a tier-based pricing mechanism, where charges would vary based on the size of the merchant, with larger traders paying a higher fee and smaller merchants paying a lower amount, the report said.

Merchants whose annual turnover is below INR 40 Lakh will remain exempt from UPI transaction fees even if MDR is brought back.

It must be noted that merchants paid MDR (less than 1% of the transaction) on card payments in the past, but the government waived it to encourage digital adoption. 

Now, with UPI becoming the dominant and preferred mode for retail payments in India and RuPay gaining traction, banks suggest that large merchants, who already pay MDR on other card networks such as Visa and Mastercard debit cards, should also pay for UPI and RuPay transactions. 

It is pertinent to note that there have been repeated demands from industry players to bring back MDR. 

Vishwas Patel, chairman of the Payments Council of India, stated in February that the government’s zero-charge policy for all merchants uses taxpayer funds to subsidise large businesses that can afford transaction processing fees. The council represents major fintech companies.

Last year, Amazon Pay India CEO Vikas Bansal also called for the implementation of the MDR regime for UPI transactions. Bansal then said that  MDR for UPI payments is essential for smaller players to “receive a fair share for the value they add to the payment ecosystem”.

While the Centre provides subsidies to banks and fintechs for processing the payments without MDR, industry insiders claim these funds are inadequate to cover the infrastructure costs necessary for handling the volume of transactions. 

Moreover, the government slashed the subsidy allocation to INR 437 Cr for FY26 in this year’s budget.

The number of UPI transactions zoomed nearly 46% to 17,220 Cr last year from 11,768 Cr in 2023. The surge came on the back of increasing popularity of fintech apps like PhonePe, Paytm, Google Pay, CRED, among others, that have made UPI payments convenient. 

According to the Payments System Report 2024 by the Reserve Bank of India (RBI), out of 20,787 Cr digital payments recorded during the year, 17,221 Cr transactions were routed through UPI.

In February 2025, UPI transactions in India stood at over 16 Bn and the value touched INR 22 Lakh Cr mark. 

The post Banks Call For Return Of MDR On UPI, RuPay Debit Cards appeared first on Inc42 Media.

The Karnataka Assembly has passed a legislation which will bring ecommerce platforms trading notified agricultural produce under the ambit of a licensing regime. 

As per news agency PTI, the Karnataka Agricultural Produce Marketing (Regulation and Development) (Amendment) Bill underlines rules for establishing and operating ecommerce platforms for selling certain agricultural products. Such platforms would be able to operate only after obtaining necessary licences.

“For example, DMart, BigBasket, Amazon and Udaan come in our ecommerce platform. They are doing business evading our legal provisions. We are bringing this law to regulate them from doing business without paying cess,” state agricultural marketing minister Shivanand Patil reportedly told the House. 

Patil also claimed that Udaan recently paid a fine of INR 25 Lakh for evading cess. 

According to the report, the bill defines an ”e-commerce platform” as an online medium that facilitates licensed traders to sell notified agricultural produce to licensed retail traders within the market area, strictly for consumer sales and not for resale or processing. 

In addition, it has also incorporated “warehouse service providers” and defined their duties. As per the bill, a warehouse service provider is an entity that “charges a service fee only from the buyer of the notified agricultural produce, with a cap of 5% of the sale price for fruits, vegetables, and flowers, and two per cent for all other notified produce”.

Besides, the bill has put the onus on warehouse service providers to ensure the safe custody and storage of the seller’s goods and provide adequate insurance coverage against certain natural calamities. Patil also noted that the norms also give the power to regulate warehouse service providers to the local agricultural produce market committee (APMC) director. 

The move is expected to have a direct bearing on ecommerce platforms that source their agricultural produce directly from farmers in the state. 

This comes at a time when quick commerce and ecommerce platforms are already locked in pitched battles with distributors and retailers. Last week, the All India Consumer Products Distributors Federation (AICPDF) approached the Competition Commission of India (CCI) to file a complaint against quick commerce players like Blinkit, Zepto and Swiggy Instamart alleging unfair pricing and for monopolising the market.

At the time, the AICPDF also claimed that quick delivery players were impacting the competition in the market by indulging in exclusive supply chain and distribution agreements.

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The Reserve Bank of India (RBI) governor Sanjay Malhotra on Monday (March 10) said that the central bank is working to make cross-border payments “more efficient”.

Addressing the Digital Payments Awareness Week 2025 in Mumbai, Malhotra said that there was a need to address challenges such as high cost, slow speed and insufficient access and transparency in cross border payments.

He also noted that the RBI plans to continue expanding the reach of unified payments interface (UPI) “bilaterally” by linking the payments infrastructure with fast payment systems of other nations. 

“… We will continue to expand the reach of UPI bilaterally by linking UPI with fast payment systems of other countries. We will also explore the possibility of linking payment systems other than UPI for facilitating efficient cross-border payments. We will continue our engagement in a multilateral project called Project Nexus, to enable instant cross-border retail payments,” added Malhotra. 

For context, Project Nexus has been conceptualised by RBI’s Innovation Hub and aims to connect the fast payment systems of five ASEAN countries namely Malaysia, Philippines, Singapore, Thailand and India. 

Noting that the “revolution” in India’s payment systems was “far from over”, Malhotra said that the RBI, going forward, will continue working on promoting innovation via soft-touch regulations and raising awareness of digital payments. 

“… We will continue to encourage innovation in payments, as also generally, while being mindful of risks and taking appropriate measures to mitigate them. We will promote innovation to facilitate payment systems that are fast, safe, secure, accessible and resilient. We have adopted a soft-touch approach to regulating the payments ecosystem and fintech,” added Malhotra. 

He also reiterated that the central bank’s approach so far has been to “put in place regulatory guardrails within which all stakeholders are free to operate”, adding that the RBI will continue to encourage innovation while promoting safety and security through soft-touch regulations.

He also underscored the need for identifying geographies and population segments still lagging behind in usage and awareness of digital payments, adding that suitable steps need to be taken to expand awareness and improve usage.

“I urge the banks, payment system operators and other stakeholders to contribute in their own innovative ways to take forward the mission of Har Payment Digital (every payment digital),” added the RBI governor. 

This comes a week after the RBI governor met representatives of fintech startups and other industry stakeholders and called on them to comply with existing laws while fostering innovation. 

His comments come at a time when the Indian cross-border payments space is witnessing healthy action on the back of growing adoption. Earlier this year, Skydo received RBI’s approval to operate as Payment Aggregator-Cross Border (PA-CB) entity. 

Owing to this, homegrown cross-border  payments startups are seeing healthy investor interest. Last month, fintech platform HiWiPay bagged $2 Mn in a seed funding round led by Unicorn India Ventures. In the same month, B2B fintech startup Cashfree raised $53 Mn in its Series C funding round led by South Korean gaming giant KRAFTON to shore up cross-border payment offerings. 

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The Maharashtra government has announced plans to levy a “vehicle tax” of 6% on electric vehicles (EVs) priced above INR 30 Lakh. 

“It is proposed to levy motor vehicle tax at the rate of 6% on electric vehicles priced above Rs. 30 lakhs,” said state finance minister (FM) Ajit Pawar during his budget speech on Monday (March 10). 

The changes will be implemented starting April 1. As per a report in The New Indian Express, Pawar said that the proposed taxes on EVs will help the state government generate an additional INR 170 Cr annually. 

As per media reports, Maharashtra chief minister Devendra Fadnavis said, “The tax is levied only on EVs which are priced above INR 30 Lakh because it’s luxury and not below that”.

The vehicle tax is expected to drive up costs of luxury EVs in the state, especially for the end customers. At the lower end of the spectrum, the customers will now have to shell out an additional INR 1.8 Lakh for an EV priced at INR 30 Lakh. 

However, to foster mass adoption of electric vehicles in the state, the government has kept affordable EVs outside the ambit of the new levy. 

This also came on the same day as Pawar, in his budget speech, announced the establishment of an AI-led “command control centre” to curb crimes in the Mumbai city, provide quick emergency responses and ensure effective public safety.

He also proposed plans for developing a strategy, with an outlay of INR 500 Cr, to leverage AI to boost the local agriculture sector. Additionally, the state budget also proposed establishing the Maharashtra Cyber Crime Security Corporation to “supply expert manpower for cyber security”.

The new vehicle taxes on EVs, above INR 30 Lakh, comes at a time when one of the world’s largest electric automaker Tesla is looking to enter India. The announcement comes just days after reports claimed that the Elon Musk-led company signed a lease agreement for a showroom space in Mumbai’s BKC. 

Not just Tesla, other carmakers such as BMW, Audi, Mercedes, Hyundai and BYD could also feel the pinch as the new levies drive up costs for high-end EVs in the state. 

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Maharashtra finance minister Ajit Pawar has proposed setting up of an artificial intelligence -powered “command control centre” to keep crimes in check in the Mumbai city. 

While presenting the state budget on Monday (March 10), Pawar also said that the new command centre will also provide quick emergency responses and ensure effective public safety.

“(A) new ‘High-Tech Command Control Centre’ based on artificial intelligence will be established at the office of the Commissioner of Police, Mumbai to prevent crime in Mumbai, provide quick emergency responses, and ensure effective public safety,” Pawar said in his speech. 

The Maharashtra FM also announced that the state is developing a strategy to leverage AI for giving a major impetus to the agriculture sector. In his speech, he said that the proposed policy, which will have a budgetary outlay of INR 500 Cr, will be deployed to deliver beneficial systems from governmental, semigovernmental, and private sectors to farmers. 

Pawar also noted that 50,000 farmers, encompassing an area of 1 Lakh acres, will be benefitted during the first phase of the implementation of the initiative. 

Additionally, the state government will establish the Maharashtra Cyber Crime Security Corporation (MCCSC) to strengthen resilience against cybercrimes. “The Maharashtra Cyber Crime Security Corporation will be established to supply expert manpower for cyber security,” Pawar added. 

This comes days after reports first surfaced that Maharashtra Cyber Cell will transition into the Cyber Security Corporation. Post the transition, all corporate entities in Maharashtra will reportedly be required to undergo an annual cyber audit by government-approved firms to identify vulnerabilities and ensure businesses adopt advanced security protocols. 

Companies failing to comply within the stipulated timeframe will face a penalty of INR 25,000 per day, as per reports. 

The move to set up MCCSC comes as the state government is looking to safeguard corporate data and prevent cyber fraud amid rising number of online threats. Notably, in the recent past, Indian entities have witnessed a surge in ransomware and cyberattacks. In 2024, India ranked as the second most targeted country for cyberattacks globally, behind the US.

According to a report by non-profit Prahar, the country witnessed 500 Mn cyberattacks in the first quarter of 2024, followed by nearly 750 Mn more in the second quarter.

In January this year, Tata Technologies faced a ransomware attack which led to the company suspending some of its services.

Meanwhile, in August last year, a ransomware attack at C-Edge, which provides services to cooperative and regional rural banks, led to National Payments Corporation of India (NPCI) temporarily isolating the service provider from accessing its retail payment systems.

Another such major cyberattack led to the personal data leak of millions of Star Health’s customers on Telegram in September last year.

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Karnataka chief minister (CM) Siddaramaiah has said that iPhone manufacturer Foxconn will receive an incentive of INR 6,970 Cr under the state’s Electronics System Design and Manufacturing (ESDM) policy.

Siddaramaiah made the announcement while delivering the state budget speech on Friday (March 7).

With this, the Taiwanese giant will become the first electronics company to receive incentives of this size from the state government. This comes at a time when Foxconn is looking to operationalise a smartphone manufacturing plant in Karnataka’s Devanahalli Industrial Area with a capital investment of INR 21,911 Cr.

This comes months after officials of the Karnataka government met Hon Hai Technology Group’s (Foxconn) CEO and chairman Young Liu in August 2024 to discuss plans to ramp up company’s investments in the state and other future expansion opportunities. 

At the time, it was announced that the company was setting up a mobile phone assembly unit in Karnataka. For the facility, the company reportedly acquired 300 acres of land in the ITIR Industrial area, spanning Doddaballapura and Devanahalli taluk in Bengaluru Rural district.

Meanwhile, in his budget speech, Siddaramaiah also announced an INR 300 Cr fund-of-funds (FoF) and an additional INR 100 Cr corpus to support deeptech startups in the state. “INR 300 Cr for Fund-of-Funds and a corpus fund of INR 100 Cr for deeptech development will be earmarked,” he added. 

The investments are part of the government’s broader Local Economy Accelerator Programme (LEAP), which will look to create jobs in Tier II & III cities in the state. The initiative is expected to generate 5 Lakh jobs across the state and develop alternate startup ecosystems in areas such as Mysuru, Mangaluru, Hubballi-Dharwad and Kalburgi.

The development comes at a time when Apple is aggressively scaling up its production in India. Last week, it was reported that the iPhone maker’s suppliers in India have started exporting electronic components of MacBooks, AirPods, iPhones to China and Vietnam for the first time.

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Chhattisgarh’s Dantewada district has adopted blockchain technology to avoid tampering of land records and increase accessibility.

As per a report by Cointelegraph, the Dantewada district administration has migrated over 7 Lakh records, some dating back to the 1950s, to the Avalanche blockchain. 

The district administration teamed up with Bengaluru-based blockchain startup Zupple Labs for the initiative. Local authorities leveraged Zupple’s flagship product LegitDoc to secure the land records on blockchain.

It is pertinent to mention that LegitDoc has been part of several state-level blockchain initiatives in the past. In 2022, the Maharashtra government used LegitDoc to issue blockchain caste certificates, diploma certificates and skill certificates. 

In the same year, the Maharashtra government also adopted blockchain technology to promote e-registration of newly-brough property and prevent duplication of original agreement documents.

Under the new project, the Chhattisgarh government is setting up dedicated kiosks across all tehsils in Dantewada, which will allow residents to retrieve necessary land documents quickly.

“For decades, our citizens faced significant delays in accessing their land records, with verification sometimes taking weeks. By digitising these records and securing them on blockchain, we have ensured they are easily accessible and cannot be tampered with,” the report quoted IAS officer and Dantewada district collector Mayank Chaturvedi as saying.

Using the LegitDoc app, tehsil level revenue officers can verify several types of government records such as mutation logs, plot registries, ownership details, cadastral maps, records of rights, among others.

The development comes at a time when the Centre is taking a slew of blockchain-based initiatives, aimed at enhancing transparency, security and efficiency in the digital service industry. 

In September last year, the electronics and information technology minister (MeitY) rolled out the Vishvasya Blockchain Technology Stack for rapid end-to-end blockchain application development and deployment.

The union government has also introduced the National Blockchain Framework with the vision of creating reliable digital platforms. The National Blockchain Framework technology stack is architected with distributed infrastructure, core framework functionality, smart contracts & API gateway, security, privacy & interoperability and applications development offering Blockchain as a Service (BaaS).

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The Reserve Bank of India (RBI) has imposed a cumulative monetary penalty of INR 76.60 Lakh on four non-banking financial company peer-to-peer (NBFC-P2P) lending platforms – Faircent, Visionary Financepeer, Finzy and Rang De.

While Rang De and Finzy have been penalised INR 10 Lakh each, Visionary Financepeer Pvt Ltd has been fined INR 16.60 Lakh. The biggest penalty of INR 40 Lakh has been imposed on Faircent.

The platforms have been penalised over non-compliance with certain provisions of the NBFC-P2P directions, 2017. 

The RBI, which initiated scrutiny of the affairs of these companies in September 2023, found multiple issues with their operations. The details are as mentioned below: 

• Faircent

The RBI issued the monetary penalty order to the NBFC on February 11, 2025 after finding out that the company disbursed loans without specific approvals from individual lenders. Besides, it also found out that the NBFC did not undertake and disclose credit assessment and risk profile of the borrowers to the prospective lenders.

Further, Faircent also took partial credit risk by foregoing the management fee partially / fully, which was not provided under the ‘Scope of Activities’ for NBFC-P2P companies. It also did not comply with the RBI’s directions on ‘Fund Transfer Mechanism’, when it allowed repayments to lenders from fresh funds provided by new / existing lenders or through repayments pooled from the borrowers.

• Visionary Financepeer

The NBFC was penalised by the RBI on February 25 over alleged loan disbursals to borrowers without specific approval of individual lenders along with no signed loan agreements in place. The central bank said that it did not disclose borrowers’ details to lenders, had no board-approved policy in place for services, among others.

• Finzy

The RBI said that Finzy disbursed loans to borrowers without specific approval from individual lenders. Besides, the central bank found certain instances where agreements with service providers missed the inclusion of clauses to recognise the right of the RBI to cause an inspection to be made to the service providers and undertake an annual review of the service providers.

• Rang De

The NBFC was penalised for disbursing loans to individual borrowers without the specific approval of individual lenders.

“This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company,” the RBI’s orders read. 

This is the second instance when the RBI has imposed such penalties on NBFC-P2P lending platforms in recent times. In August, it imposed penalties totalling around INR 4 Cr on LenDen Club and LiquiLoans.

In the same month last year, the apex bank also tightened norms to curb certain practices adopted by NBFC-P2P platforms such as violation of the prescribed funds transfer mechanism, promoting P2P lending as an investment product with features like tenure-linked assured minimum returns, among others. 

The post RBI Slaps Penalties On Faircent, Finzy, Other NBFCs For Non-Compliance appeared first on Inc42 Media.

Ministry of Electronics and IT (MeitY) Secretary S Krishnan has reportedly said that the union government is internally discussing plans for the rollout of the second phase of the India Semiconductor Mission (ISM). 

As per news agency PTI, Krishnan said that the Centre is ready with the outline of the next iteration of the Mission, adding that the government is also mulling “supporting” chip design projects in the country and semiconductor packaging designs.

“The next stage of ISM is in the works. We have had discussions, discussions with many of the stakeholders, including many amongst you, as to how to design the programme. The design and the outline is ready, and there’s undergoing detailed discussions internally in the government,” Krishnan reportedly said while addressing the IESA Vision Summit virtually. 

The MeitY Secretary added that the second phase of ISM will also potentially offer support for gases and other elements needed for semiconductor production.

On the current status of the first phase of the Mission, which had a budgetary outlay of INR 76,000 Cr, Krishnan noted that INR 65,000 Cr was earmarked for chip manufacturing and packaging units while the remaining INR 10,000 Cr and INR 1,000 Cr were set aside for modernising the semiconductor lab at Mohali and the design-linked incentive scheme respectively.

“We have committed more than INR 60,000 Cr to the five major units which are currently under construction. In addition, we have a few more projects which are under evaluation and are expected to be awarded quickly ,” Krishnan reportedly added.

While underscoring the need for providing more support to ensure the homegrown fabless ecosystem work more efficiently, Krishnan also added that the Centre is re-thinking the design-linked-incentive scheme to support “more ambitious design-linked innovations and design initiatives in the country”.

“The design link incentive scheme is undergoing further changes to ensure that it is in a position to support more ambitious design-linked innovations and design initiatives in the country. In addition to designing the chips itself, there is also packaging design which needs to go alongside. We have to really look at how advanced packaging can be supported through the design link scheme as well,” the MeitY Secretary added.

This comes weeks after IT minister Ashwini Vaishnaw asserted that the first “made-in-India” chip would be rolled out from a commercial fab by September or October 2025. At the time, he also said that budgetary allocation for the second edition of the mission would be decided after Cabinet approval. 

At the heart of all this is the homegrown semiconductor market which, as per Inc42, is expected to become a $150 Bn opportunity by 2030.

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Union IT minister Ashwini Vaishnaw launched several key initiatives under the INR 10,300 Cr IndiaAI Mission on Thursday (March 6). 

As per an official statement, Vaishnaw unveiled the IndiaAI Compute Portal, which will offer affordable AI compute, network, storage and cloud services. Besides, he launched a unified datasets platform AIKosha. 

At the event, he also announced the launch of an accelerator programme to incubate AI startups in the country. Not just this, Vaishnaw also released an AI competency framework for public sector officials and an AI-powered personalised content recommendation system, iGOT-AI, for government employees.

In addition, the minister also announced grants under the new IndiaAI Fellowship Student to support AI research and the establishment of IndiaAI Data Labs in Tier II & III cities across the country to impart foundational level courses in the technology. 

Speaking at the event, Vaishnaw, as per Business Standard, said that the AI compute portal will be used to develop India’s own foundational model. He added that the model will be built at a fraction of the cost of other countries. 

Vaishnaw also expressed optimism that India will have its own indigenous graphics processing units (GPUs) competing at the global stage in the next three to four years. He further underscored that the cost of using GPUs on the compute platform is at a “historic” low of less than INR 100 per hour.

Meanwhile, electronics and IT ministry (MeitY) secretary S Krishnan said that the AI Compute Portal represents the largest component of the IndiaAI Mission. He added that nearly 45% of the Mission’s funding has been allocated to the platform. He also underscored that leveraging AI is essential for realising the vision of “Viksit Bharat” by 2047.

“The launch of AIKosha, AI Compute Portal and other IndiaAI initiatives signifies a major step in democratising AI access, enabling research-driven innovation, and strengthening India’s global AI leadership,” the statement added. 

Here is a deep dive into the initiatives unveiled by the Centre on Thursday:

IndiaAI Startups Global Acceleration Programme 

The IndiaAI Mission, in partnership with French incubator STATION F and management institute HEC Paris, will launch a four month-long accelerator programme for Indian AI startups. The immersive programme will offer mentorship and networking opportunities to 10 selected Indian startups in Europe. 

AIKosha

As per the government, the unified portal offers a repository of 300 datasets, 80 AI models and other tools to foster AI innovation in the country. AIKosha also features AI sandbox capabilities via integrated development environment along with tools and tutorials. 

The platform is equipped with features such as content discoverability, scoring of datasets, permission based access and security mechanisms, secure APIs, and firewalls.

IndiaAI Compute Portal

The platform will offer AI compute, network, storage and cloud services at “discounted rates” to startups, researchers, students, startups and government agencies. 

The IT minister said that the portal will facilitate easy access to high-end and mid-range GPUs such as NVIDIA H100, H200, A100, L40S, and L4, AMD MI300x and 325X, Intel Gaudi 2, AWS Tranium and Inferentia. This, as per the government, will pave the way for cost-effective AI development capabilities and innovation in the country . 

Eligible AI users will receive up to 40% subsidy on AI compute services on cloud. 

This follows the government inviting applications from interested companies earlier this year for empanelment of players for AI services on the cloud. Subsequently, the Centre selected 10 out of the 19 applicants that participated in the bids after technical evaluation.

AI Competency Framework

Vaishnaw also released the governance framework, which will look to equip public sector officials with skills related to AI and other upskilling initiatives. 

iGOT-AI

iGOT-AI is an AI-powered personalised content recommendation system, which has been developed to enhance the learning experience for government officials on the iGOT Karmayogi platform.

IndiaAI Fellowship 

The fellowship has been introduced to support students that have “demonstrated their skills in AI projects”. The government said that IndiaAI is disbursing tranches of the fellowship to both undergraduate and postgraduate students from various centrally funded institutes, including IITs, NITs, IIITs, as well as other government and private academic institutes.

The launches are part of the IndiaAI Mission, approved by the Union Cabinet in 2024, which aims to make the country an AI hub through strategic partnerships between both public and private sectors. The Mission aims to “democratise” AI access, enhance data quality, cultivate indigenous AI capabilities, and ensure ethical AI practices.

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The window for public comments on draft Digital Personal Data Protection Rules, 2025 (DPDP Rules) has closed, ending a two-month consultation period during which the government sought feedback from various stakeholders. The Centre will now review the comments and may reportedly release the finalised rules in the next eight weeks or so.

A report by the Hindu Businessline, citing government sources, said that there will be no major change in the draft and the deadline for public consultations will not be extended further.

The Ministry of Electronics and Information Technology (MeitY) last extended the public feedback from February 18 to March 5, following requests from multiple sectors for additional time to review the draft in detail and provide comprehensive feedback.

“No requests have come for any extension, and we have received quite a bit of feedback and also done a lot of in-person sessions. I don’t think there will be major changes from what we had published earlier,” the report further said, quoting a senior MeitY official.

The official further said that doubts regarding consent management, authority in control, data localisation, parental control and verifiable parents have all been received and addressed.

MeitY initially proposed the rules outlining data fiduciaries (entities that determine how personal data is processed) the need to provide data principals (end users whose data they are collecting) necessary details for them to give specific and informed consent for the processing of their personal data in January this year.

The initial deadline for the public consultation on the draft rules was till February 18.

To note, the rules for data privacy and security in India so far functioned under the Digital Personal Data Protection (DPDP) Act, 2023, passed by the Lok Sabha in August 2023. This was aimed at replacing the data protection rules that were largely enforced through Section 43A of the Information Technology Act, 2000.

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Reserve Bank of India (RBI) governor Sanjay Malhotra has underscored the need for “responsible innovation” in the country’s burgeoning fintech space. 

Malhotra made the comments during a meeting with representatives of non-bank payment system operators, fintech players, self-regulatory organisations (SROs) and other stakeholders. The interaction was part of RBI’s engagements with the payments and fintech ecosystem. 

While lauding the role of fintech startups, RBI Governor also called on the new players in the space to comply with existing laws while fostering innovation. 

“… The Governor underscored the need for responsible innovation and emphasised the need for ensuring compliance by the entities who are new to regulatory space. He also emphasised that RBI values such interactions with the ecosystem participants and would continue to adopt a consultative approach,” said the central bank in an official statement. 

RBI said that the participants shared their feedback on the evolving payment and fintech ecosystem and their expectations from the central bank.

The meeting was also attended by Deputy Governors M Rajeshwar Rao, T Rabi Sankar and Swaminathan J, along with executive directors-in-charge of payments, fintech and regulation.

The development comes at a time when the RBI, in recent months, has further tightened its noose around fintech startups for flouting regulatory norms. In October last year, the central bank barred Sachin Bansal’s Navi Finserv and three other non-banking financial companies (NBFCs), including DMI Finance, to immediately stop sanctioning and disbursing loans due to supervisory concerns. 

However, RBI later lifted the curbs on three of the companies after the NBFCs took corrective actions. 

In 2024, RBI also cracked its whip on Paytm Payments bank and followed it up with its crackdown on NBFC-P2P lending in August later in the year. 

Nevertheless, the meeting also comes at a time when Malhotra is stepping into the shoes of former RBI Governor Shaktikanta Das, who retired in November 2024. While Das was credited with fostering a vibrant digital payments ecosystem in the country, Malhotra could be looking to continue the same legacy. 

In line with this, since the appointment of the new RBI governor, the central bank has taken multiple steps catering to the fintech space. Just weeks ago, the bank was examining proposed AiI and machine learning (ML) models for ‘predictive’ analysis of the markets.

Last month, it also launched a mobile app which will offer access to more than 11,000 different series of economic data pertaining to the Indian economy. In the same month, the central bank also allowed small finance banks (SFBs) to offer pre-sanctioned credit lines via unified payments interface (UPI).

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Karnataka’s IT and BT minister Priyank Kharge has reportedly warned ecommerce and quick commerce platforms in the state to improve their customer service and delivery experience.

As per ET’s report, platforms failing to raise standards would lead to facing potential government regulations, said Kharge.

Kharge has received numerous complaints on customers being tangled with unaddressed responses from AI chatbots, the report further said.

“As an advocate of technology, I’m not saying we shouldn’t use chatbots or AI. However, the idea of using these tools is to ensure better customer service and delivery,” Kharge was quoted as saying in the report.

He also confirmed that the government will not intervene urgently with regulatory checks, however, he urged that companies must tend to these issues.

This development also comes days after he delivered an address at the Bengaluru GAFX 2025 conference, where Kharge revealed the state’s plan of becoming India’s leading esports hub, as the sector has been gaining traction in the southern pockets.

The move does highlight the growing dependence of consumers on quick commerce and ecommerce platforms for their purchases. The Reserve Bank of India (RBI) has also acknowledged that these players are driving private consumption in the country.

With the higher consumer traffic on these platforms, ecommerce and quick commerce players have now been competing with tighter timelines to retain higher market share, leading to questionable quality on their services.

Apart from the issue with customer service complaints, the government has intervened in cases of quick commerce platforms flouting metrology norms as well as expiry date display on their apps, in the past year.

Furthermore, the National Restaurant Association of India (NRAI) was likely to approach the Competition Commission of India (CCI) to intervene on the launch of 10-minute food delivery standalone apps, Bistro and Snacc, under suspicions of Zomato and Swiggy possessing crucial consumer data and using it to divert customers towards their products sold through these apps.

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Minister of Coal and Mines, G Kishan Reddy, has expressed optimism that India will potentially be able to meet the demand for critical minerals such as lithium locally in the next three to four years. 

“We need lithium for batteries of mobiles, and for solar panels. In the next three-four years, we are hopeful that we will be able to meet the demand for minerals like lithium from within the country and it will be of great help,” Reddy was quoted as saying in a PTI report.

Lithium is a critical mineral used for manufacturing lithium-ion batteries, which find application in electric vehicles, smartphones and others. Its compounds are also central to the advancement of modern semiconductor technologies.

He made the comments while speaking to the reporters on the sidelines of an event celebrating 175 years of the Geological Survey of India (GSI) in Kolkata.

Highlighting the Centre’s INR 34,000 Cr National Critical Mineral Mission, Reddy said that the scheme will pave the way for scaling up the mining of critical minerals like lithium. He added that the Mission will lessen India’s “import dependence” and help the country “achieve the top spot in mineral exploration by 2047”.

While noting that the GSI is playing an important role in meeting the objectives of the National Critical Mineral Mission, the Minister said that the agency is collaborating with Argentina on five lithium blocks in the Latin American country. 

This comes just weeks after India’s Mineral Exploration and Consultancy Limited (MECL) signed a memorandum of understanding (MoU) with the provincial government of Argentina’s Catamarca to deepen collaboration in lithium exploration and mining. 

Notably, the latest comments come just days after Reddy said the Geological Survey of India has identified a few lithium blocks in Jammu and Kashmir (J&K) and Chhattisgarh. At the time, he also said that the government plans to set up a special team for exploration of lithium blocks in the UT.

“The clarity on this exploration will come by the end of April and May and after that we would go on auction,” the minister said then. It is the presence of this local lithium supply that could help India fulfil its lithium requirements for its burgeoning sectors like EVs and smartphone manufacturing. 

Notably, Indian authorities have also been aggressively ramping up efforts to secure lithium supply. Besides Argentina, mines secretary VL Kantha Rao recently said that the county is “scouting for mining and exploration of critical mineral assets” including copper, lithium, nickel, and cobalt in Congo, Zambia, Tanzania and Australia. 

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The Supreme Court has agreed to hear a plea seeking a review of the existing rules regarding blocking of social media accounts and content. 

As per news agency PTI, a bench comprising Justices BR Gavai and Augustine George Masih has sought the Centre’s response on the petition, filed by Software Freedom Law Center (SFLC), that seeks to quash Rule 16 of the IT Rules, 2009. 

Section 16 of the provision mandates the designated government official to maintain “proper” records of the “intercepted or monitored or decrypted information” and of the person posting the content that is to be blocked. However, Section 8 goes further and makes it compulsory for the “designated officer” to identify the originator of the content and issue a notice.

The plea claims that the current rules make it optional for the government to issue a blocking notice to the originator of the content. The provision vests ‘unguided discretion’ with the authorities regarding whether or not to issue a notice to the originator, notes the petition. 

The plea, filed through advocate Paras Nath Singh, has challenged the validity of certain provisions of the IT Rules and also sought directions for giving creators an opportunity to present their side before issuing a blocking request. 

“The challenge is not that the government does not have the power to take down information, but while taking down the information, notice should be given to the person who has put that information in the public domain,” said advocate Indira Jaising, while arguing for the petitioner. 

She said that blocking notices are being directly sent to social media platforms like X and not to content creators first. 

The petition alleges that there have been “numerous instances” of websites, apps and social media accounts being blocked without sending a notice or given an opportunity to be heard. 

“The blocking rules, 2009, in their present form, effectively allow the respondents to block online content posted by citizens without providing any rationale and without affording any chance for the owner or poster of the content to be heard,” the plea says. 

The petition also says that the current use of “blocking rules” is depriving citizens of their fundamental rights under Article 19(1)(a) and 21 of the Constitution. An urgent intervention of the apex court is crucial to protect the fundamental right of speech and expression of citizens, which is necessary both for the liberty of individuals as well as the democratic fabric of the society, as per the plea. 

This comes close on the heels of the Centre informing the Parliament that the government blocked 18 OTT platforms last year for publishing obscene and vulgar content.

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The Unified Payments Interface (UPI) is reportedly slated for a “full rollout” in Qatar “soon”.

As per Moneycontrol, India’s ambassador to the Middle Eastern nation, Vipul, who only goes by his first name, said that the integration of the homegrown payments infrastructure with Qatar National Bank (QNB) is complete. He said that the service is all set for a mass launch soon.

“Qatar will soon see the full rollout of UPI. The integration with QNB is complete, testing is done, and the launch has already taken place. This is a significant step in enhancing digital payments between our countries,” Vipul said.

The partnership is expected to simplify financial transactions for the Indian diaspora in the Gulf nation and further deepen fintech collaboration between the two countries.

This follows UPI’s integration with QNB’s point-of-sale (PoS) systems in July last year.

The ambassador also said that the two nations are strengthening their engagement in areas of startups and innovation, adding that Qatar could provide financial backing for budding Indian new-age tech ventures.

“India has that talent pool, the focus on technology, the startup space, which is very big with 150,000 startups. And Qatar has the financing as well as the ecosystem for startups. Indian startups can validate their business models with the benefits Qatar provides,” he added.

Noting that the country has already infused $1.5 Bn in India in sectors such as retail, renewable energy, IT, and education, Vipul added that another $10 Bn in investments from Qatar could flow into areas such as infrastructure, fintech, spacetech, among others.

The Indian ambassador was referring to the $10 Bn investment commitment announced by Qatar during the nation’s Emir Sheikh Tamim bin Hamad Al Thani’s recent visit to India in February.

UPI’s integration with the QNB comes nearly eight months after the international arm of the National Payments Corporation of India (NPCI), NPCI International Payments Limited (NPIL), announced a partnership with QNB in July last year, which enabled Indian tourists to make UPI payments across QNB’s merchant network in Qatar.

The NPIL has been expanding the reach of India’s digital payment solution globally. In July last year, the NPCI also joined hands with Network International to facilitate UPI payments in the UAE. In the same month, the Reserve Bank of India and central banks of various countries, including Malaysia, Philippines, Singapore, and Thailand launched ‘Project Nexus’ to link UPI with their Fast Payment Systems to ease making cross border payments.

The NPCI has also signed similar pacts with Ghana and other African nations to develop and increase the adoption of UPI linked payments.

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The Unified Payments Interface (UPI) transactions dropped over 5% month-on-month (MoM) to 16.11 Bn in February from 16.99 Bn in the preceding month and 3.7% from 16.73 Bn in December 2024. 

The decline in UPI transactions broke the streak of record-high transactions seen in the previous two consecutive months.

However, on a year-on-year (YoY) basis, the transaction count surged 33% in February.  

According to data released by the National Payments Corporation of India (NPCI), the total amount of the UPI transactions declined 6.47% in the month under consideration to INR 21.96 Lakh Cr from INR 23.48 Lakh Cr in January. On a yearly basis, the total transaction amount increased 20% in the month of February. 

On a daily basis, the transactions count as well as value increased in February. 

The average daily transaction count rose to 575 Mn in the month under consideration, up from 548 Mn in January. The average daily transaction amount increased 3.56% to INR 78,446 Cr in February from INR 75,743 Cr last month.

In 2024, UPI transactions surged almost 46% to a record 17,220 Cr  from 11,768 Cr in 2023. The surge in UPI came on the back of increasing popularity of fintech apps including PhonePe, Paytm, CRED, among others that made UPI payments convenient. 

According to the Payments System Report 2024 by the Reserve Bank of India (RBI), out of 20,787 Cr digital payments recorded during the year, 17,221 Cr transactions were routed through UPI.

It is projected by the RBI, that the UPI transactions will soon hit the 1 Bn mark per day. 

Maintaining its lead in the UPI ecosystem, fintech major PhonePe processed 810.2 Cr transactions in January 2025. The fintech giant accounted for more than 48% of the total UPI transactions in January.

Google Pay held on to the second position last month with a market share of 36.91%. Vijay Shekhar Sharma-led Paytm retained the third position, but its market share continued to decline. Paytm’s share in UPI transactions dipped to 6.87% in January from 6.97% in December 2024 and 7.03% in November 2024. 

In December last year, NPCI extended the deadline for implementing a 30% cap on the market share of third-party app providers (TPAPs), such as PhonePe and Google Pay, by another two years. The proposal was initially made in November 2020 to prevent market dominance by any single player, the NPCI plans to cap the market share of TPAPs to 30%. 

Notably, PhonePe and Google Pay dominate the UPI payments landscape and currently have more than 30% market share each. 

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National Payments Corporation of India (NPCI) MD and CEO Dilip Asbe has reportedly said that almost 16% of all credit card spending in India takes place on the RuPay network, with nearly half of these transactions made via credit on the Unified Payments Interface (UPI).

According to an ET report, speaking at the Mumbai Tech Week, Asbe said that over 30 banks now issue RuPay credit cards.

According to data from the Ministry of Finance, RuPay credit cards on UPI recorded over 750 Mn transactions worth INR 63,825.8 Cr in the ongoing fiscal year until October 2024, up from 362.8 Mn transactions valued at INR 33,439.2 Cr in the previous year.

While RuPay is seeing increased adoption, mainly due to UPI-enabled credit cards, Visa and Mastercard still hold a major share of India’s credit card market, added the report.

In June 2022, the RBI approved the integration of UPI with RuPay credit cards, making RuPay the sole UPI-linked credit card network in India, giving it a substantial advantage.

Then, in October 2023, NPCI implemented interchange fees for credit card UPI transactions, with small merchants being exempted from these charges.

In March last year, the RBI further solidified RuPay’s position by mandating that card issuers provide multiple network options to customers, while also prohibiting exclusive agreements that restrict their choice of card networks.

Meanwhile, NPCI is establishing a research and development center with a capacity for 5,000 people as part of its global expansion strategy. Asbe mentioned that representatives from approximately 70 countries have visited the NPCI office in the past four to five years.

This development comes at a time when the government has reduced its incentives for promoting RuPay debit cards and low-value UPI transactions, specifically those up to INR 2,000, marking a significant shift in digital payments.

The budget document presented by Finance Minister Nirmala Sitharaman highlighted a reduction in the incentive scheme for promoting RuPay debit cards and low-value BHIM-UPI transactions (person-to-merchant), with the allocation dropping from INR 2,000 Cr last year to INR 437 Cr for the upcoming fiscal year.

It’s important to note that the INR 2,000 Cr figure for 2024 was a revised estimate, down from the original budget allocation of INR 1,441 Cr. Over the years, the government has been gradually reducing funding for this scheme, which was initially introduced in 2023 with an outlay of INR 2,484 Cr.

This development coincides with UPI transactions reaching an all-time high in January, recording 16.99 Bn transactions. UPI transactions saw a 1.5% increase in January, rising from 16.73 Bn in the previous month. The total transaction value for January stood at INR 23.48 Lakh Cr, up from INR 23.25 Lakh Cr in December.

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Former union minister Rajeev Chandrasekhar has said that the advancement in artificial intelligence should be measured by its impact on a country’s gross domestic product (GDP).

Chandrasekhar was speaking at Mumbai Tech Week 2025 today (February 28).

Reiterating Prime Minister Narendra Modi’s vision to expand India’s digital economy, he said that currently, the digital and innovation sectors contribute about 14% to the country’s GDP and the goal is to fuel this contribution to 1/5th (20%) by achieving a trillion-dollar innovation economy by 2027. 

Chandrasekhar also said that the largest and most impactful deployment of technology happens in governance. He further pointed to India’s Digital Public Infrastructure (DPI) as a proof to how technology can deeply influence governance and democracy.

“The India DPI experience over the last six to seven years has demonstrated how technology and its use cases can create a deep impact in people’s lives, governance, and democracy. I continue to believe that if you extrapolate the India DPI model and add an AI layer to it…..It will be the biggest use case for AI,” Chandrashekhar said on the government-led use case for AI.

He further pointed out that areas like healthcare, agriculture, and disaster prediction can reflect AI drive large-scale impact.

The former minister highlighted that the government is intensifying its investments in semiconductors and AI while also prioritising talent development by funding research institutes and deeptech initiatives.

At the same time, he also outlined that fostering innovation in AI and deeptech must go hand in hand with implementing necessary safeguards.

Unlike the European model of heavy-handed regulations, Chandrashekhar advocated for a balanced approach where innovation and guardrails coexist.

“Guardrails can’t be regulated like in Europe. We don’t have to choose between citizen rights and innovation. The Digital Personal Data Protection Act is a shining example of that,” he stated.

Referring to the rise of AI models like DeepSeek, he pointed out that traditional notions about these models are evolving. They are now more frugal and capable of operating within infrastructure constraints while still delivering optimal performance.

He noted that there was once an assumption that the US had an undisputed lead in cutting-edge AI, but this perception is shifting.

Earlier this month, the government increased allocations for key technology projects by about 84% to INR 18,000 Cr. This includes production-linked incentives for mobile phones and IT hardware, as well as semiconductor schemes and the IndiaAI Mission.

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Karnataka’s IT and BT minister Priyank Kharge has reportedly revealed the state’s plan of becoming India’s leading esports hub, as the sector has been gaining traction in the southern pockets.

He was speaking at the Bengaluru GAFX 2025 conference yesterday (February 27).

“This year, I am hopeful that we will be hosting our own National Esports Festival. My intention is to hold the nation’s and perhaps Asia’s biggest esporting festival for our gaming community,” Kharge was quoted as saying in Moneycontrol’s report.

This comes at a time when esports and real money gaming (RMG) has been tangled with emerging regulations and rise in tax loads for over a year now.

Despite its headwinds, the rapid smartphone penetration, increasing internet access, and a youthful demographic eager for interactive entertainment, has offered vast potential for game developers.

It is to note that the Indian gaming landscape saw a 20% surge in revenue in the past year. In-app purchases, the industry’s fastest-growing segment, skyrocketed by 41%.

By FY29, the sector is projected to cross $9.2 Bn, with a compound annual growth rate (CAGR) of 20%. 

Further, Kharge highlighted that more than 25 leading investors are engaging with 50 animation, VFX, gaming, comics, and extended reality (AVGC-XR) startups, offering funding and mentorship opportunities.

He revealed that the state will become the frontrunner in the AVGC-XR space as well and lead Karnataka to be a major contributor in the country’s ambition of becoming a global leader in the sector.

Prime Minister Narendra Modi, during his Independence day speech in August 2024, remarked that the youth of the country would make India a leading nation in the gaming industry by taking online games from the country to the world.

Even as the government’s push towards esports is benefitting startups in the space, there have been cases of protests that erupted in Karnataka’s Kalaburagi demanding a complete ban on online rummy games in the state, in October last year.

Additionally, Karnataka’s IT minister previously suggested a deeptech innovation cluster in Bengaluru to help grow and scale up startups in this sector.

Prior to that, Kharge also revealed that the state was looking to attract an investment of $6.2 Bn in technology sectors such as biotechnology, AI, semiconductors, AVGC (animation, visual effects, gaming, and comics), and healthtech from the US and Europe. 

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Railway minister Ashwini Vaishnaw has reportedly announced that the ministry will collaborate with IIT-Madras to develop vertical take-off and landing (VTOL) vehicles.

As per PTI, the project will be funded by the Ministry of Railways and will look to promote “innovative” means of travel. He made the comments while virtually addressing the closing ceremony of the Global Hyperloop Competition 2025 organised by IIT-Madras. 

For the uninitiated, VTOL simply refers to an aircraft that can take off and land vertically, without needing a runway and takes off from ground similar to a helicopter. A use case for the technology is flying taxis. 

“This will prove to be a very important step in promoting modern and innovative changes in the means of travel,” Vaishnaw reportedly said. 

Noting that the collaboration reflects strong partnership between Indian Railways and the education sector, the Minister said that the move will lead to the promotion of indigenously-built cutting-edge travel technologies at the global level. He also reportedly underlined that the union government was focussed on taking the country ahead on the path of innovation. 

While it remains to be seen whether the Railways-funded project will be utilised for flying taxis, VTOL vehicles could also use cases for aerial surveys and inspections of railway tracks. 

However, it is pertinent to note that design and other approvals for VTOL vehicles fall under the ambit of Directorate General of Civil Aviation (DGCA), which is under the Ministry of Civil Aviation (MCA). 

This comes at a time when the government has pushed the pedal on fostering startups in the air mobility space with an eye on tackling the issue of growing urban congestion and creating alternate means of travel. 

Last month, reports surfaced that the MCA was looking to set up a regulatory sandbox for fostering advanced electric air mobility solutions in India. Besides visiting potential field sites for trials, the DGCA has also set up six working groups related to various aspects of advanced air mobility.

In addition, the government, in 2023, also granted design organisation approval (DOA) to aerial mobility startup The ePlane Company, the first step towards commencing commercial operations. 

The development comes at a time when a host of new-age mobility companies are emerging out of India in the VTOL space. In November 2024, The ePlane Company, also an IIT-Madras incubated startup, bagged $14 Mn in its Series B funding round co-led by Speciale Invest and Antares Ventures.

In June last year, IndiGo Airlines’ parent InterGlobe Enterprises was said to be looking to launch electric air taxi services in India by 2026. 

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