Page 14 - Banking Finance November 2025

ROUNDUP

aims to recast India's fragmented
labour ecosystem into a modern, inclu- Google to invest $15 billion in Visakhapatnam AI
sive, and skill-oriented framework hub
aligned with global best practices. Google has announced a $15 billion investment to establish its largest arti-
The ministry has invited public feed- ficial intelligence hub outside the United States in Visakhapatnam, Andhra
back on the draft before finalising it for Pradesh, over the next five years. The announcement was made during the
Cabinet approval. Once implemented, Bharat AI Shakti event in New Delhi, with CEO Sundar Pichai stating that
Shram Shakti Niti 2025 is expected to he discussed the project with Prime Minister Narendra Modi.
drive a significant shift in labour gov- Pichai said the hub will include gigawatt-scale computing capacity, an in-
ernance, aligning India's workforce ternational subsea gateway, and extensive energy infrastructure. "Through
development with emerging techno- it, we will bring our industry-leading technology to enterprises and users in
logical and demographic realities. India, accelerating AI innovation and driving growth across the country,"
he posted on X.
Shipping ministry receives Responding to Pichai, PM Modi wrote, "Delighted by the launch of the
Rs. 10 lakh crore invest- Google AI Hub in Visakhapatnam. This multi-faceted investment aligns with
our vision to build a Viksit Bharat and will democratize technology while
ment commitments ensuring AI for All."

The Ministry of Ports, Shipping and
Waterways (MoPSW) has received in-
vestment commitments worth Rs. 10 Logistics costs to fall be- AI regulation must evolve

lakh crore from domestic and interna- low 9% by end-2025: with innovation: NITI
tional companies to boost India's mari-
time infrastructure. The commitments Gadkari Aayog CEO
span multiple segments including ship- Union Road Transport and Highways Artificial intelligence (AI) has the po-
Minister Nitin Gadkari has said India's tential to revolutionise the financial
building, port modernisation,
logistics costs will fall to single digits, landscape, but regulatory frameworks
sustainability initiatives, and trade
development, Secretary Vijay Kumar around 9%, by December 2025. The must keep pace with technological
reduction, he added, will enhance change, said NITI Aayog CEO B.V.R.
said.
competitiveness, improve export mar- Subrahmanyam at the Global Fintech
The investment memorandums will be gins, and strengthen India's position in Fest 2025 in Mumbai.
formalised during the upcoming India global trade. In a discussion with CRED Founder
Maritime Week 2025 in Mumbai later
Speaking at a PHDCCI event, Gadkari Kunal Shah, Subrahmanyam said, "AI
this month. Of the total commitments,
cited a study by IIM Bangalore and IIT will influence at three levels - improv-
Rs. 3 lakh crore is earmarked for ship- Chennai, which found that logistics ing tasks, changing processes, and
building and shipping clusters, Rs. 2
costs have already fallen by 5-6% due eliminating processes altogether." He
lakh crore each for sustainability and to the rapid expansion of the national noted that the convergence of technol-
port modernisation, Rs. 1 lakh crore highway network. He also noted that ogy and finance is reshaping the glo-
each for port-led industrialisation, the warehouse-to-consumer delivery bal economy, offering transformative
knowledge sharing, and trade and busi- segment has seen costs drop by 1.33%. opportunities for banks, fintechs, and
ness initiatives. financial institutions.
The minister attributed the progress
Union Minister Sarbananda Sonowal to massive infrastructure upgrades, He stressed the need for agile regula-
said India aims to achieve global lead- improved connectivity, and faster tion through sandboxes, pilots, and
ership in the maritime sector by 2047 transportation times. He said contin- controlled experiments before scaling
under the Maritime Amrit Kaal Vision, ued investment in expressways, logis- successful models. "Regulation must
with total planned investments of Rs. tics parks, and multi-modal transport evolve from an institution-based
80 lakh crore, creation of 1.5 crore corridors would help India achieve glo- framework to an activity-based one,"
jobs, and a focus on green shipping. bal standards in logistics efficiency. he added. Subrahmanyam emphasised

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