The Hidden Costs of AI Agents: Why Observability Is Becoming Essential in the AI Era

Artificial intelligence agents are rapidly transforming how organizations operate, helping automate workflows, improve customer experiences, accelerate software development, and support business decision-making.

However, as enterprises race to deploy increasingly sophisticated AI systems, a new challenge is emerging: managing the unpredictability, costs, risks, and performance of these autonomous agents.

According to Cisco's Splunk State of Observability 2026: Restoring Predictability in the AI Era report, businesses worldwide are struggling to balance the promise of AI with the practical realities of monitoring and controlling it. The study highlights a growing need for what experts call "agent observability" - the ability to monitor, measure, and govern AI agents effectively.

AI Adoption Is Outpacing AI Oversight

Organizations are increasingly deploying AI agents to perform tasks that were once handled exclusively by humans. These agents can assist with software development, customer service, troubleshooting, and operational management.

Yet many companies are discovering that while AI deployment is accelerating, visibility into how these systems behave is not keeping pace.

The research found that 87% of respondents consider monitoring AI systems a priority, but more than half lack clearly defined business outcomes linked to those monitoring efforts. Additionally, 56% say they cannot effectively measure critical AI workload metrics, such as large language model (LLM) response quality.

This disconnect presents a serious challenge. Unlike traditional software applications, AI agents can make autonomous decisions, interact with multiple systems, and influence business outcomes in ways that are not always predictable. Without proper visibility, organizations may struggle to identify errors, assess performance, or understand why an AI system behaves unexpectedly.

The Rise of Agent Observability

Observability has traditionally been used to help organizations monitor applications, networks, and IT infrastructure. In the age of AI, observability is evolving into something much broader.

Agent observability focuses on understanding not just whether an AI system is functioning, but how it is making decisions, whether its outputs are accurate, and whether it is delivering business value.

Organizations increasingly recognize the importance of monitoring AI hallucinations and model quality, though many still struggle to do so effectively.

This new discipline requires businesses to move beyond technical metrics and begin tracking behavioral indicators that connect AI actions directly to business outcomes. Such visibility makes it possible to evaluate whether AI agents are contributing to productivity, customer satisfaction, revenue growth, or operational efficiency.

AI's Growing Cost Problem

One of the report's most striking findings concerns the financial impact of AI adoption. The challenge is not simply that AI can be expensive. Rather, organizations are increasingly worried about unpredictable costs and unexpected billing spikes.

More than half of surveyed organizations said they cannot adequately control AI-related expenses. Additionally, 60% reported that surprise billing increases create greater operational strain than consistently high costs.

Key Factors Driving AI Cost Challenges

• AI agents often operate across multiple models and platforms.
• Usage patterns can fluctuate significantly.
• Growing AI deployments generate massive quantities of telemetry and monitoring data.
• Cost attribution becomes difficult when numerous AI services interact simultaneously.

For many enterprises, the volume of monitoring data itself has become a significant expense. In fact, 57% of respondents said telemetry costs exceeded the cost of the infrastructure being monitored.

These findings suggest that managing AI economics may soon become as important as managing AI performance.

Why Observability Matters for Financial Control

The report argues that observability is emerging as a crucial mechanism for financial governance in AI environments.

When organizations have clear visibility into AI activity, they can:

• Understand which agents and workloads are consuming resources.
• Track model usage and efficiency.
• Identify cost anomalies before they escalate.
• Align AI spending with measurable business outcomes.
• Make more informed investment decisions.

Observability effectively transforms AI spending from a largely unpredictable expense into a managed business investment. By connecting operational data with financial metrics, leaders gain better control over AI economics and can justify future AI initiatives based on measurable returns.

Security and Observability Are Converging

Another major theme emerging from the research is the growing relationship between observability and cybersecurity.

As AI agents gain access to business systems, applications, and data sources, the distinction between performance monitoring and security oversight becomes increasingly blurred.

Organizations must not only ensure that agents function correctly but also verify that they have not been compromised and are operating within approved boundaries.

The study found that 81% of respondents believe monitoring AI workloads has increased collaboration between observability and security teams. It also revealed rising levels of data sharing and joint troubleshooting between these functions.

This collaboration reflects a broader industry shift. AI costsTheir monitoring frameworks provide a comprehensive picture of AI operations.

3. They Connect Data to Business Impact

Leaders treat telemetry and observability insights as strategic planning tools rather than purely technical resources. Monitoring data helps guide investment decisions and business strategy.

The benefits are substantial:

• More accurate AI cost attribution.
• Stronger returns on observability investments.
• Greater measurable business value.
• Improved collaboration between observability and security teams.
• Faster identification of performance and security issues.

Global Trends Highlight Different Priorities

The research examined organizations across Australia, France, Germany, India, Japan, New Zealand, Singapore, Saudi Arabia, the United Kingdom, and the United States.

While concerns around AI monitoring and cost predictability were common across all regions, some countries demonstrated unique strengths.

• India stood out for advanced AI monitoring capabilities and stronger effectiveness in tracking AI model quality.
• United Kingdom organizations showed high levels of AI agent adoption alongside significant concern about unintended AI consequences.
• Saudi Arabia demonstrated particularly strong optimism regarding AI-driven innovation.
• Germany placed a high priority on AI privacy visibility.

These regional differences suggest that while AI adoption is a global phenomenon, the challenges and priorities associated with observability vary according to local business environments and regulatory expectations.

The Future: Trust Through Visibility

The rapid rise of AI agents is creating both extraordinary opportunities and significant operational challenges.

Organizations are no longer focused solely on deploying AI. Increasingly, they are asking whether AI systems can be trusted, measured, governed, and controlled.

The findings point to a clear conclusion: as AI systems become more autonomous, observability will become a foundational business capability rather than a purely technical/> In the coming years, the companies that succeed with AI may not be those that deploy the most agents, but those that can understand, monitor, and govern them most effectively. Observability appears set to become the key discipline that turns AI from an unpredictable experiment into a reliable and accountable business asset.

NBFCs Drive 50% of New-to-Credit Originations, Expanding Financial Inclusion Across India’s Semi-Urban and Rural Markets

(L-R) Bhavesh Jain, MD & CEO, TransUniuon CIBIL with Raman Agarwal, CEO, FIDC at the launch of the report

• NBFCs have become a powerhouse of credit inclusion, growing their credit-active consumer base by nearly 7 times over the past decade – approximately 2.5 times faster than the overall credit industry. 
• NBFCs continue to expand access across the credit spectrum, while leading lending to below prime consumers, who make up 35% of their credit-active consumers base. 
• NBFCs have established themselves as the lender of choice for small-ticket credit, accounting for 47% of loan originations below ₹2 lakh

Non-Banking Financial Companies (NBFCs) have become a major gateway to formal credit in India, accounting for nearly half (47%) of New-to-Credit (NTC) consumer originations as of June 2026. Today, 36% of credit-eligible consumers have accessed credit through an NBFC, while 46% of all credit-active consumers hold an NBFC loan, according to Bharat Nirman: NBFC Forming the Foundation of Credit Dispersion, a joint report by the Finance Industry Development Council (FIDC) and TransUnion CIBIL.

NBFC Growth Trends

NBFCs have grown steadily over the past decade, with their credit-active consumer base expanding nearly sevenfold and their share of retail loan originations rising from 33% to 43%. At the same time, first-time borrowers accounted for a smaller share of NBFC originations, declining from 28% in June 2016 to 16% in June 2026, showing that NBFCs are increasingly serving borrowers who already have a credit history.

• NBFCs accounted for 43% of retail loan originations by volume
• Share by value stood at 30% in June 2026
• Strong presence in smaller-ticket lending

Smaller-Ticket Lending and Deeper Reach

Loans of up to ₹2 lakh account for 82% of consumer credit industry origination volumes, and NBFCs contribute 47% of originations in this segment, compared with 17% for banks.

Semi-urban and rural (SuRu) markets account for more than 58% of NBFC loans by volume.

Changing Composition of Borrower Base

• Semi-urban and rural share rose from 31% to 59%
• Women’s share increased from 18% to 27%
• Credit-experienced consumers rose from 35% to 49%
• Younger consumers rose from 44% to 47%

Executive Commentary

Bhavesh Jain, MD & CEO, TransUnion CIBIL, said: “The NBFC sector has come a long way over the last decade and today plays a much larger role in how credit reaches consumers across India... NBFCs will remain an important part of expanding access, improving credit outcomes and supporting sustainable growth across India’s credit ecosystem.”

Diverse Credit Needs

• Consumption credit increased from 51% to 62%
• Business-oriented credit rose from 4% to 11%
• Vehicle credit declined from 27% to 24%
• Mortgage credit declined from 10% to 7%

Portfolio Quality

• Above prime consumers rose from 24% to 32%
• Delinquency declined from 2.7% to 1.1%
• Credit monitoring consumers rose from 3% to 48%

FIDC Commentary

Raman Aggarwal, CEO, FIDC, said: “The NBFC sector today is far more deeply embedded in India’s credit system than it was a decade ago... This is a more mature NBFC sector, with a larger role in financing enterprise, economic activity and consumption across India.”

Commercial Lending Growth

• NBFC share of credit-active commercial entities rose from 10% to 18%
• NBFC-served entities grew 2.2x vs 1.2x overall market
• Partnership/proprietorship share rose from 73% to 82%
• Low-risk commercial entities rose from 14% to 51%

Future Opportunities

First-time borrower growth is moderating, placing greater focus on deeper relationships, broader product participation, and evolving borrower needs.

About FIDC

Finance Industry Development Council (FIDC) has been the voice and face of the NBFC sector for the last 22 years... RBI recognised FIDC as the Self Regulatory Organization (SRO) for NBFCs and HFCs in India.

About TransUnion CIBIL

India’s pioneer credit information company, TransUnion CIBIL, ensures the credit history of each person and business entity is reliably represented... For more information visit www.transunioncibil.com

India’s Data Centre Boom Sparks Power, Cyber and Operational Risk Concerns: Howden Report

Report Title - Howden’s Insuring the Data Centre Supercycle Report

• Power consumed by data centres has risen 68-fold since 2016, while expansion at live sites is increasing construction and business interruption risk
• More than 90% of India's data centres have redundant capacity, yet non-damage outages and interconnected tenants continue to create insurance gaps

India's data centre expansion is creating concentrated risks across power, construction, water, cyber and operations, according to new research from Howden, the global insurance broker. The findings call for an integrated approach from site selection and design through construction and operation to build resilience and secure insurance.

Power infrastructure as the biggest risk factor

Howden’s analysis identifies power infrastructure as the biggest risk factor. The challenge is not just generation capacity but reliable grid connectivity, substation capacity and redundancy at each location.

Between 2016 and 2025, the power consumed by data centres built in India grew 68-fold, at a 60% CAGR as per the recent S&P data. The demand is forecast to reach 57 TWh by 2030. Increasingly, hyperscale campuses are looking to on-site, behind-the-meter generation to ensure a reliable supply. This changes the underwriting risk profile and increases the importance of location-specific power resilience assessments. Reliable, efficient supply is a commercial priority and energy accounts for about 65% of operating costs. Power resilience is especially crucial in these markets, with Maharashtra, Telangana and Karnataka accounting for approximately 70% of the capacity.

Construction at live sites raises business interruption risk

India added 7 million square feet of data centre space in 2025, with construction volumes growing at a 37% CAGR since 2016, the S&P data indicates. The average size of a new facility rose from 59,000 square feet in 2016 to 276,000 square feet in 2025, concentrating greater asset values at individual sites.

Between 2026 and 2030, planned expansion at existing data centres is equivalent to 78% of their current footprint. Construction alongside sensitive, high-value operations increases the risk of physical damage and business interruption, particularly during testing and commissioning. Construction and operational risks therefore need to be assessed within a single programme.

Redundancy does not remove outage and cyber risk

More than 90% of Indian data centres have redundancy built into their UPS, generator and cooling systems. However, outages still occur, often because of system failures that cause no physical damage and may not trigger traditional insurance. The market is developing solutions such as parametric cover, particularly for retail and wholesale providers. These providers account for 86% of India's data centres and carry uptime commitments to multiple customers.

These facilities also face the greatest systemic cyber exposure. A single compromise can affect the systems and workloads of hundreds of thousands of tenant organisations, while interconnected tenants increase the risk of lateral movement. Cyber risk therefore needs to be considered alongside property, power and operational exposures.

Water and Environment risks need early attention

Most data centres are located in urban centres where water availability is already under pressure. Cooling a 1 MW facility can require around 25.5 million litres of water annually. Water use, renewable power sourcing, energy efficiency, power usage effectiveness (PUE) and carbon footprint should form part of early site planning and risk assessment, rather than being addressed after construction.

Amit Agarwal, CEO, Howden India, said: "India's data centre story is not only about adding capacity. Power reliability, construction at operating sites, cyber concentration and water stress can all affect uptime. These risks need to be identified early and managed together, with insurance designed around the exposures that remain. This will help operators protect their assets and avoid gaps in cover as the sector expands."

Alongside risk transfer, the report highlights the need to build water and environment considerations into data centre planning from the start. This includes renewable power sourcing, energy efficiency and PUE, water availability and consumption, and the carbon footprint of large campuses. It also points to gaps in existing policy and insurance frameworks: water use is not adequately addressed, non-damage outages may fall outside traditional cover, and construction, power, cyber and operational risks are often treated separately. Closing these gaps will require stronger site-level risk assessment and more integrated insurance programmes.

Source: Howden analysis of NOAA and 451 Research by S&P Global

About Howden

Howden is a global insurance intermediary group with employee ownership at its heart. Founded in 1994, it provides insurance broking, reinsurance broking and underwriting services and solutions to clients ranging from individuals to the largest multinational companies. The group operates in 57 countries across Europe, Africa, Asia, the Middle East, Latin America, the USA, Australia, and New Zealand, employing 24,000 people and handling $51bn of premium on behalf of clients.

Website: www.howdengroupholdings.com

Education Sector Hit Hard: 85% of Ransomware Driven by Identity Attacks, Sophos Report Warns

Malicious email is the leading attack method, and recovery costs now average $2.26 million

Sophos, a global cybersecurity leader, today released its annual State of Ransomware in Education 2026 report, which found that identity-based attack techniques were used in 85% of ransomware attacks against education institutions. Those techniques include malicious email, phishing, compromised credentials and brute force attacks. The 85% rate exceeded the cross-sector average of 79%, underscoring the role identity compromise continues to play in ransomware incidents targeting lower and higher education institutions.

Malicious email was the leading technical root cause of ransomware attacks in both lower education (31%) and higher education (29%). The report also found that 77% of higher education organizations and 71% of lower education organizations said their ransomware incident was also their most significant identity attack.

Education institutions also recover more slowly from attacks. Lower and higher education institutions are roughly twice as likely as the cross-sector average to need one to three months to fully recover. Lower education fared worst of all: 31% took a month or more to get back on their feet, the highest share of any sector.

"Education institutions remain attractive targets because they hold vast amounts of personal data while operating under significant resource constraints," said Ross McKerchar, chief information security officer, Sophos. "Today's attackers don't need a crowbar when they can steal the keys. Identity compromise has become one of the most effective paths into an organization, and AI is only increasing the speed, scale and sophistication of these attacks. The most resilient institutions are the ones that treat identity as a core security control and combine it with integrated detection and response capabilities that can stop threats before they become full-scale incidents.”

Additional findings from the report include:

• Operational challenges: More than half (53%) of higher education institutions said they lacked the skills or expertise to detect and stop attacks in time compared with 35% across all sectors, while lower education institutions most commonly cited human error (52%), lack of protection (47%), unknown security gaps (42%) and limited capacity (41%).
• Data encryption rates: The percentage of lower education organizations whose data was encrypted during a ransomware attack more than doubled year over year, rising from 29% in 2025 to 61% in 2026. Across the education sector, 58% of ransomware attacks resulted in encrypted data.
• Data restoration: Over three quarters (77%) of lower education institutions and 69% of higher education institutions restored encrypted data using backups, both above the 66% cross-sector average.
• Ransom demands: The median ransom demand for education institutions was $775,200, above the cross-sector median of $698,000. Education median ransom demands have gone down two years in a row, while payments increased by $15,000 from the 2025 report to 2026.
• Recovery costs: Average ransomware recovery costs reached $2.26 million across the education sector, exceeding the cross-sector average of $1.7 million. More than a quarter (26%) of education institutions required one to three months to fully recover from an attack, nearly double the cross-sector average (14%).
• Human toll: Over half (53%) of higher education teams reported increased pressure from senior leaders, versus 40% across all sectors. Around 39% of education organizations reported staff absences due to stress or mental health issues following a ransomware attack, compared to 29% across all sectors. Education also reported elevated leadership turnover, with 29% of higher education and 27% of lower education teams seeing their leadership replaced after the attack, compared with a cross-sector average of 21%.

The findings are based on an independent survey of 226 IT and cybersecurity leaders in the education sector across 17 countries whose organizations were impacted by ransomware in the past year. Research was conducted between January and March 2026. For the purposes of this report, age cohorts are defined as lower education (typically students up to age 18) and higher education (typically students over 18). This is the sixth year Sophos has tracked this data.

To download the full State of Ransomware in Education 2026 report, visit https://www.sophos.com/en-us/resources/white-papers/state-of-ransomware-in-education

About Sophos

Sophos, a global cybersecurity leader, defends more than 625,000 organizations worldwide with Sophos Fusion, the industry's first and most complete AI-native cybersecurity defense system: a single, connected architecture where every control point operates as one. Powered by agentic AI and elite human expertise, Sophos detects, investigates, and neutralizes threats before they become business-disrupting events. Working alongside a global ecosystem of managed service providers, resellers, and technology partners, Sophos compounds intelligence from every threat encountered and every environment defended to make every customer's defense stronger than the last. Sophos is headquartered in Oxford, U.K. More information is available at www.sophos.com.

India Targets 25% GDP Share from Manufacturing with 12-Sector Strategy

NITI Aayog’s latest report (August 13, 2026) identifies 12 priority sectors—including automobiles, electronics, steel, defence, chemicals, solar PV, textiles, and pharmaceuticals—as the backbone of India’s push to become a global manufacturing hub by 2047. The roadmap emphasizes local value addition, job creation, and integration into global supply chains.

Key Highlights of the Report

• Released by: Ashok Kumar Lahiri, Vice Chairperson of NITI Aayog
• Title: “Key Sectors to Position India as a Global Manufacturing Hub”
• Objective: Strengthen India’s manufacturing ecosystem to support the Viksit Bharat @2047 vision
• Methodology: From an initial pool of 62 sectors, 12 were shortlisted based on attractiveness, strategic importance, viability, and value-chain potential

The 12 Priority Sectors

Sector	Strategic Focus
Automobiles	EV adoption, supply-chain resilience
Electronics	Local component manufacturing, exports
Steel	Infrastructure-linked demand, global competitiveness
Capital Goods	Machinery, industrial equipment
Defence & Drones	Self-reliance, advanced tech
Chemicals	Feedstock availability, downstream value
Solar PV	Clean-tech clusters, import substitution
Textiles	Raw material scaling, global exports
Pharma & Medical Devices	Biopharma ecosystem, innovation
Telecom Equipment	Local value chains, global integration
Leather & Footwear	MSME-driven exports
Food Processing	Agri-linkages, packaged exports

Strategic Themes

• Global Supply Chain Diversification: India aims to capture opportunities as firms reduce dependence on single-country sourcing
• Employment Generation: Textiles alone employ 45 million people, second only to agriculture
• Technology & Innovation: Telecom and electronics sectors prioritized for joint ventures, R&D, and skill development
• Clean Energy Push: Solar PV manufacturing positioned to reduce import dependence and strengthen upstream capabilities

Challenges Identified

• Import dependence on critical inputs (telecom, chemicals, solar)
• Fragmented supply chains and logistics gaps
• Limited domestic value addition in high-tech sectors
• Skill shortages constraining productivity

Outlook

• Manufacturing currently contributes 17.5% of India’s GDP; the goal is to raise this to 25% by 2047
• India’s share in global manufacturing output is 3.2%, compared to China’s 32%
• The report calls for long-term, consistent reforms to replicate success stories like South Korea and Vietnam

Sierra EV Sparks Tata’s Premium Charge: YES Securities Report Highlights Bold Strategy for 2x Growth by FY31

Tata Motors Passenger Vehicles (TMPV) has unveiled the Sierra EV, marking a decisive step in its premium electric vehicle (EV) strategy. The launch underscores Tata’s intent to move beyond affordability-driven positioning and instead emphasize technology, performance, and premium ownership value.

In a detailed company update released by YES Securities, Tata Motors Passenger Vehicles (TMPV) has been spotlighted for its bold entry into the premium EV SUV segment with the launch of the Sierra EV. The report emphasizes that Tata is shifting its strategy away from affordability-driven competition and toward a technology and performance-led positioning, supported by advanced features, dual powertrain options, and a lifetime battery warranty. With introductory pricing in the ₹18–26 lakh range, the Sierra EV is positioned to reinforce Tata’s premium brand perception while aligning with its long-term ambition of achieving 2x industry growth and 20% market share by FY31.

The launch of Sierra EV at premium pricing depicts TMPV’s strategy of rather than competing purely on affordability, it is slowly shifting focus towards a technology and performance-led positioning supported by extensive features and a lifetime battery warranty.

While the pricing versus rivals appears to be higher, the Yes Securities report said that the premium is largely justified by the product's differentiated appeal. In line with Harrier EV, it expects the Sierra to have 30-40% powertrain mix. This should strengthen Tata's brand perception in premium EVs and support margins over the medium term. Early customer acceptance and sustained production ramp-up will remain key monitorable, particularly as competition intensifies across the Rs18–26 lakh EV SUV category.

Premium Positioning and Market Strategy

The Sierra EV enters the aspirational mid-SUV segment with introductory prices between ₹18.79–25.99 lakh, positioning it above rivals such as Maruti Suzuki’s E Vitara (₹15.99–20 lakh) and Hyundai’s Creta EV (₹18.03–24.7 lakh). TMPV is betting on differentiated appeal through:

• Price Range: ₹18.79–25.99 lakh, positioned above rivals like Maruti Suzuki’s E Vitara and Hyundai’s Creta EV.
• Performance: 50% higher power and torque compared to ICE variants, AWD dual-motor option.
• Battery: 63 kWh and 75 kWh packs, real-world range of 460–530 km.
• Warranty: Lifetime battery warranty (15 years), first in India.

This premium approach is expected to strengthen Tata’s brand perception in EVs and support margins, even as competition intensifies in the ₹18–26 lakh EV SUV category.

EV bookings have increased 3x in the past 2–4 months. This is not a blip, it is a structural change, management noted, highlighting rising consumer confidence.

Industry Outlook and TMPV Ambitions

By FY31, the Indian PV industry is expected to reach 6.4 million units, with:

• SUV dominance: >60% of volumes.
• EV penetration: 15–20%.CNG + EV combined share: >45%.
• Median ASP: ~₹15 lakh, reflecting premiumization.

TMPV’s ambition is to outpace industry CAGR (~6–7%) with ~15% growth, targeting:

• 1.2 million annual sales.
• ~20% market share.
• Expanded portfolio: 15 nameplates, including six new launches and 20+ facelifts.
• 80%+ addressable market coverage by FY31.

Competitive Edge: Specifications Snapshot

The Sierra EV stands out among peers on several parameters:

Specification	Sierra EV	E Vitara	Creta EV	Harrier EV
Battery (kWh)	63–75	49–61	42–51.4	65–75
Range (km)	565–665	550	390–473	538–627
Motor Power (bhp)	209–238	142–172	133–169	235–390
Torque (Nm)	315	195.5	255	504
Warranty	15 yrs	8 yrs	8 yrs	10 yrs
Price (₹ lakh)	18.79–25.99	15.99–20.01	18.03–24.70	21.49–30.23

Manufacturing & Network Expansion

TMPV is scaling up production capacity from 0.9 million to 1.3 million units annually through plant expansions (Sanand, Panapakkam) and supplier localization. It also plans:

• Production capacity to scale from 0.9m to 1.3m units annually.
• 2x growth in sales network and 3x growth in service network by FY31.
• First Indian automaker to use locally assembled semiconductor chips.
• Cost reduction strategy: 5–6% savings in ICE, lower battery costs in EVs, platform sharing.

Financial Outlook

TMPV’s financial trajectory reflects strong growth potential:

• Net Income: ₹3,356 bn (FY26) → ₹4,704 bn (FY28).
• Adj. EPS: ₹4.0 (FY26) → ₹48.6 (FY28).
• RoE: 1.3% (FY26) → 14% (FY28).
• P/E: 86.9x (FY26) → 7.2x (FY28).

YES Securities maintains an ADD rating with a target price of ₹405, implying a +16.5% potential return.

Conclusion

The Sierra EV is more than a product launch—it is Tata Motors’ statement of intent to dominate the premium EV SUV space. With performance-led engineering, lifetime battery assurance, and aggressive portfolio expansion, TMPV is positioning itself to capture a significant share of India’s evolving EV market.

MFIN Micrometer Q4 FY26 signals microfinance recovery with 3% portfolio uptick, improved credit quality, and diversification analysis.

Micro Finance Industry Network (MFIN) released the 57th edition of Micrometer for Q4 FY 25-26 based on the industry data as on March 31, 2026. Micrometer is the flagship publication of MFIN which covers progress of Indian microfinance industry on a quarterly frequency.

MFIN is an industry association of Banks, NBFC-MFIs, SFBs and NBFCs providing microfinance and India’s first RBI-recognized self-regulatory organization.

Report insights

The 57th edition of Micrometer brings two important additions to the publication. From this edition, there is a dedicated analysis of portfolio diversification, tracking the mix and performance of microfinance and non-microfinance portfolios, along with on- and off-balance sheet exposures across NBFC-MFI size categories. This reflects the evolving business models of MFIs following the regulatory flexibility on qualifying asset norms. The Other Regulated Entities section, introduced in the last edition, continues to evolve as a comprehensive analysis of the microfinance activity of banks, SFBs and NBFCs who are MFIN members.

As of March 31, 2026, microfinance operations are spread across 36 States/UTs and 721 districts. Data for Q4 FY 25-26 indicates early signs of recovery in the sector. After seven quarters of portfolio contraction, this quarter witnessed a QoQ uptick of over 3%. As on March 31, 2026, the industry portfolio stands at Rs 3,25,174 Cr. The portfolio expansion rode on quarterly disbursement of Rs 77,524 crore, which is also the highest in last seven quarters, though still less than the peak achieved in Q4 of FY 23-24. The portfolio inched up but despite seven quarters of contraction, the credit quality has returned to pre March 2024 levels. PAR 31-90 days was 0.8% as on March 31, 2026, and PAR 91-180 days at 1.2%. Both PAR metrices have been showing a gradual improvement over last eight quarters.

NBFC-MFIs remain the largest provider of microcredit, accounting for 44.2% of the total industry portfolio, followed by banks at 32.7%, while SFBs and NBFCs constitute the remaining share. While YoY, all entities have shown decline in outstanding portfolio, the decline is highest for banks at -30% and lowest for NBFC-MFIs at -2.7%. The funding squeeze for small MFIs was pronounced during the year; in break-up of outstanding liabilities from various sources for small MFIs, as All India Financial Institutions kept away from small players, Banks, NBFCs and ECBs were the primary sources, albeit lower than previous years.

On a regional and state level, Eastern region continues to be the top shareholder with 36.6% reflecting the focus on microfinance in underserved region. Top 3 states in terms of portfolio share are Bihar, UP and Tamil Nadu and top ten states account for ~80% share.

Dr. Alok Misra, CEO & Director of MFIN said “We can now say that despite the tough 2 years, Industry is turning the corner as evidenced by uptick in portfolio and continued improvement in Portfolio at Risk – PAR 31-180 declining to 2.0% as of March 2026 compared to 6.3% a year ago. A significant policy development which will further strengthen this recovery is the CGSMFI 2.0 scheme of Government of India. Recent extension of the scheme till August 2026 will allow sufficient time for utilisation. The sector is grateful to the Government, and the sector has done its part also by way of improved performance metrics riding on MFIN Guardrails, it is time for banks to come forward and actively support the cause of financial inclusion.

While these positive factors augur well for the sector in 2026-27, MFIN has also advised the players to keep in consideration the likely impact of lesser than average monsoon prediction and West Asia conflict as these may affect rural livelihoods”.

India’s Semiconductor Roadmap: From Import Dependence to Global Leadership by 2035

India’s semiconductor industry is entering a decisive decade. NITI Aayog’s Future of India Semiconductor Industry report (May 2026) lays out a bold vision: reduce the country’s 90–95% import dependence and build a USD 120–150 billion domestic value chain by 2035, positioning India as a top‑three global destination for advanced packaging and OSAT (Outsourced Semiconductor Assembly and Test).

Market Outlook

• India’s semiconductor market is projected to reach USD 200 billion by 2035, growing at a CAGR of 19%.
• Global demand is expected to exceed USD 1.5 trillion, driven by AI, EVs, 5G/6G, and data centres.
• India already hosts 20% of the world’s semiconductor design workforce, offering a strong base for innovation.

Policy Imperatives

India’s semiconductor roadmap highlights four critical policy imperatives that will shape the industry’s growth and sustainability.

Capital Mobilisation

• Requires long‑term, patient capital to support capital‑intensive fabs and packaging units.
• Blended financing models combining government subsidies, sovereign funds, and private equity.
• Export‑linked incentives and viability gap funding to attract global players while ensuring domestic competitiveness.

Regulatory Framework

• Single‑window clearance mechanism to streamline environmental and land approvals.
• Robust IP protection laws to safeguard innovation and design leadership.
• Trusted supply chain certification standards to align with global norms.
• Reduced compliance burden to improve ease of doing business.

Critical Minerals Strategy

• Secure access to essential materials like silicon carbide (SiC), gallium nitride (GaN), cobalt, and lithium.
• Diversified sourcing through bilateral agreements and strategic reserves.
• Domestic exploration initiatives to reduce external dependence.
• Recycling and circular economy models to ensure sustainability.

Global Alliances

• Partnerships with US, Japan, Taiwan, and EU for technology transfer and joint R&D.
• Collaborations to strengthen India’s role in trusted global supply chains.
• Market access through international cooperation and industrial partnerships.

Why These Imperatives Matter

• Ensure financial viability of capital‑intensive projects.
• Provide regulatory predictability for investors.
• Guarantee resource security for uninterrupted production.
• Enable global integration into trusted technology ecosystems.

Together, these imperatives create the enabling environment for India’s semiconductor ambitions, ensuring sustainable growth and global competitiveness.

Five Strategic Pillars

India’s semiconductor roadmap is built on five strategic pillars that provide a holistic framework for growth and global competitiveness.

Pioneering

• Focus on frontier R&D and innovation in AI‑enabled chip design, quantum computing, and neuromorphic architectures.
• Leapfrog into next‑generation technologies rather than only catching up on mature nodes.
• Dedicated innovation clusters and public‑private labs to drive breakthroughs in design automation, materials science, and specialised accelerators.

Policy & Investment

• Ensure long‑term financing and risk‑sharing incentives for capital‑intensive fabs and packaging units.
• Export‑linked subsidies and predictable regulatory frameworks to attract global players.
• Tax incentives and stable investment climate balancing domestic priorities with global competitiveness.

Production

• Prioritise mature‑node fabs (28nm and above), compound semiconductors (SiC, GaN), and advanced packaging (chiplets, 2.5D/3D integration).
• Dominate niche demand areas such as EVs, telecom, renewable energy, and AI hardware.
• Scale OSAT capabilities to make India a global hub for assembly and testing.

People

• Develop a national semiconductor talent pyramid to train fab‑ready technicians, engineers, and researchers.
• Upskilling programs aligned with AI‑enabled design, automation, and packaging technologies.
• Global talent infusion through partnerships with universities and industry labs.

Partnership

• Forge trusted global alliances with US, Japan, Taiwan, and EU for technology transfer and joint R&D.
• Secure access to critical minerals through international cooperation.
• Industrial collaborations with global majors to integrate India into resilient supply chains.

The Five Strategic Pillars together form the backbone of India’s semiconductor strategy. By investing in pioneering R&D, India ensures it is not just catching up but actively shaping the future of chip technologies.

Policy and investment frameworks provide the financial stability and regulatory predictability needed to attract global players while supporting domestic innovation. Production priorities around mature‑node fabs, compound semiconductors, and advanced packaging allow India to dominate niche markets where demand is accelerating, such as EVs, telecom, and renewable energy.

The people pillar builds a sustainable talent pipeline, ensuring that engineers, technicians, and researchers are equipped to drive long‑term growth. Finally, global partnerships integrate India into trusted supply chains, enabling technology transfer, secure access to critical minerals, and resilience against geopolitical risks.

Together, these pillars create a holistic framework that balances innovation, investment, manufacturing, talent, and international cooperation, positioning India as a competitive and trusted hub in the global semiconductor ecosystem.

Industry Opportunities

• Advanced Packaging: Chiplets, 2.5D/3D integration, and heterogeneous systems.
• Compound Semiconductors: SiC and GaN for EVs, telecom, and renewable energy.
• AI & RF Chips: Accelerators for data centres, 5G/6G, and defence.
• Design Leadership: Leveraging India’s existing design talent base.

Talent & Workforce

• National semiconductor talent pyramid to train fab‑ready technicians.
• Global talent infusion through partnerships with universities and labs.
• Upskilling programs aligned with AI‑enabled design and automation.

Risks & Challenges

• Geopolitical fragmentation of supply chains.
• Execution risk in moving from policy intent to disciplined implementation.
• Time‑sensitive window: Global “China‑plus‑one” diversification may narrow by 2030.

Strategic Takeaways

• Align investments with government incentives and mineral security.
• Prioritise advanced packaging and compound semiconductors as leapfrog areas.
• Build trusted global partnerships to mitigate geopolitical risk.
• Invest in talent pipelines to ensure sustainable scale.

India’s semiconductor journey is not just about reducing import dependence — it is about reshaping the global supply chain. With disciplined execution, technology‑led innovation, and strategic alliances, India can emerge as a trusted hub powering the next era of digital transformation.

Hackers vs. AI: 86% of Firms Hit by Cyber Threats—Who’s Winning?

Cisco's 2025 Cybersecurity Readiness Index reveals that only 4% of organizations worldwide have reached a "Mature" level of cybersecurity readiness. This is a slight improvement from last year's 3%, but it still highlights significant gaps in global preparedness.

The Index evaluates companies' readiness across five pillars—Identity Intelligence, Network Resilience, Machine Trustworthiness, Cloud Reinforcement, and AI Fortification— and encompassing 31 solutions and capabilities. Based on a double-blind survey of 8,000 private sector security and business leaders in 30 global markets, respondents detailed their deployment stages for each solution. Companies were then categorized into four readiness stages: Beginner, Formative, Progressive, and Mature.

Key Findings:

The lack of cybersecurity readiness globally is alarming as 71% of respondents anticipate business disruptions from cyber incidents within the next 12 to 24 months.

• AI-related security incidents affected 86% of organizations in the past year.
• 49% of respondents believe their employees fully understand AI-related threats, while 48% think their teams grasp how malicious actors use AI for attacks.
• Nearly half of organizations suffered cyberattacks, struggling with complex security frameworks.
• 71% of respondents anticipate business disruptions due to cyber incidents within the next 12 to 24 months.
• Only 45% of organizations allocate more than 10% of their IT budget to cybersecurity, down from 53% last year.

The report evaluates cybersecurity readiness across five pillars: Identity Intelligence, Network Resilience, Machine Trustworthiness, Cloud Reinforcement, and AI Fortification. AI is both a security tool and a threat, with 89% of organizations using AI for threat detection, response, and recovery

The report said that — to tackle today’s cybersecurity challenges, organizations must invest in AI-driven solutions, simplify security infrastructures, and enhance AI threat awareness. Prioritizing AI for threat detection, response, and recovery is essential, as is addressing talent shortages and managing risks from unmanaged devices and shadow AI.

66% HealthTech Leaders Say Their Organizations Generating Business Value From Several Ai Use Cases :KPMG Report

KPMG has unveiled a new report titled “KPMG Global Tech Report: Healthcare Insights” to better understand how healthcare organizations are navigating the complexities of digital transformation, targeting their technology investments, and deriving value.

By examining the perspectives of 122 healthcare technology leaders from around the world (based on a comprehensive survey of 2,450 global technology leaders including chief digital officers, CIOs, CTOs, CISOs, chief AI officers and other executives) the report provides valuable insights into how healthcare systems and organizations are on the precipice of a technology revolution, and are leveraging advanced technologies and tools to streamline operations, reduce costs and, above all, enhance patient experiences.

“Today healthcare technology leaders believe robust regulatory frameworks are a must to ensure the safety and privacy of data in cloud-hosted solutions. They believe this assurance enables them to advance technological innovation with confidence. Prioritizing comprehensive data interoperability frameworks is critical for seamless communication between systems across organizations and jurisdictions. Such connectivity can drive accurate patient care, promote global collaboration in medical research, and strengthen AI model training through access to diverse datasets.” said Lalit Mistry Partner and Co-head, Healthcare Sector, KPMG in India.

Key Findings from the Report:

• 70 per cent of healthcare respondents are satisfied with the amount of value they are getting from their technology investments.
• Compared with a year ago, more healthcare organizations are developing and testing data and analytics strategies or already have a strategic vision for their capabilities
• 70 per cent say cyber security teams are typically involved in the earliest planning stages and have a high degree of influence when it comes to tech investment decision-making
• 66 per cent of healthcare technology leaders say their organizations are generating business value from several AI use cases
• 61 per cent of healthcare technology leaders are currently prioritising AI and Automation as they consider how to invest in technology to support their ambitions.
• 57 per cent admit that flaws in their organizations’ enterprise IT systems disrupt business as usual on a weekly basis.
• Top 3 factors slowing down digital transformation in healthcare includes – Cyber security and privacy concerns, transformation fatigue and immature data management strategies. 
• Healthcare leads all other sectors when it comes to prioritizing and investing in Web3 technology including blockchain and tokenization.

First Edition of India’s International Technology Engagement Strategy (ITES) for Quantum Released

The Office of the Principal Scientific Adviser to the Government of India today released the first edition of International Technology Engagement Strategy for Quantum, marking a significant step toward articulating India’s outward-facing strategy in Quantum Science, Technology and Innovation (QSTI), with the intent to accelerate discovery, foster innovation, and catalyse adoption across critical sectors.

Prof. Ajay Kumar Sood

The report was officially unveiled by PSA Prof. Ajay Kumar Sood during the Office of PSA’s podcast on the occasion of World Quantum Day 2025, celebrated every year on April 14. This report comes with a special significance because of 2025 being the International Year of Quantum Science and Technology (IYQST) designated by the United Nations and member states.

This inaugural edition of ITES-Q provides a comprehensive overview of both global and national quantum ecosystems, covering analysis of investments, talent development, institutional strengths, research publications, intellectual property, startups, supply chains, and industrial activity. The ITES-Q is thought out to facilitate impactful partnerships and particularly add value to the efforts of Indian missions abroad in strengthening bilateral and multilateral engagements for QSTI.

The ITES is an initiative of the Office of the PSA to GoI, designed to strengthen and elevate India’s Technology Diplomacy efforts across critical and emerging domains.

The full ITES-Q report can be accessed through the Office of PSA website: https://psa.gov.in/CMS/web/sites/default/files/publication/ITES_QWEBSITE1.pdf

World Quantum Day 2025 Podcast with PSA can be tuned in here: 

India’s Quantum Leap with 85% of Industry Leaders Calling for Major Investments in Quantum Computing, Reports Primus Partners

As quantum computing rapidly advances from research to real-world applications, India is positioned to play a pivotal role in shaping the technology’s future. A recent survey by Primus Partners - India’s leading consultancy, reveals that industry leaders across India are pushing for significant investments in quantum research and talent development to unlock the potential of this transformative technology. The survey, conducted with 200 senior executives and CXOs, highlights the critical actions needed to propel India’s leadership in quantum computing, which is expected to revolutionise sectors like cybersecurity, healthcare, and logistics.

Sundar Pichai standing next to a quantum computer at Google

Quantum's game-changing impact across sectors

Industry leaders are confident about quantum computing’s potential to reshape industries. Nearly 75% of respondents view quantum as a game-changer for India’s future. The sectors expected to benefit most include Artificial Intelligence and Machine Learning (79.4%), Cybersecurity and Cryptography (68.1%), and Healthcare and Drug Discovery (61%).

These findings highlight the critical importance of quantum computing for India’s technological advancement. AI and machine learning, for instance, stand to experience significant acceleration, with quantum algorithms potentially unlocking new levels of computational power and efficiency. Similarly, in cybersecurity and cryptography, quantum’s ability to process vast amounts of data can drastically improve encryption methods, safeguarding India’s digital infrastructure. In healthcare, quantum could revolutionise drug discovery, making it faster and more precise, ultimately improving public health outcomes.

Key actions to unlock Quantum’s full potential

To capitalise on quantum computing’s transformative promise, industry leaders are united on the critical steps India must take. Investing in research and development (R&D) emerges as a top priority, with 74.5% of respondents emphasising the urgent need for increased investment to drive quantum innovation and ensure that India remains competitive in the global quantum race. In addition to R&D, developing a skilled workforce is seen as vital for the country’s quantum future. 61.7% of respondents highlight the importance of building a highly skilled talent pool capable of driving the next generation of quantum breakthroughs. Without the necessary talent, India risks falling behind in this rapidly evolving field.

Beyond R&D and talent development, industry leaders also view quantum as a powerful tool for addressing significant societal challenges. 63.1% believe quantum computing has the potential to enhance financial systems, making them more efficient, transparent, and secure. Similarly, 61.7% see quantum's ability to advance healthcare access, particularly in underserved regions, as a key area where the technology could make a profound impact, improving India’s social infrastructure and public health systems.

Challenges to overcome: R&D Costs, Talent Gaps, and Collaboration Needs

While the potential of quantum computing is widely acknowledged, the survey also highlights significant barriers to its widespread adoption. 70.9% of respondents point to the high cost of R&D as one of the major obstacles preventing faster advancements in quantum technology. Additionally, 62.4% of respondents note that the shortage of skilled talent is another critical barrier that must be addressed in order to unlock the full potential of quantum innovation. In addition to these challenges, 45.4% of leaders emphasise the importance of collaboration across sectors. They stress the need for closer cooperation between governments, the private sector, and international organisations to overcome both the financial and talent-related barriers to quantum growth. This collaborative approach will be key to driving breakthroughs and ensuring India remains at the forefront of the global quantum race..

Devroop Dhar, Co-founder and Managing Director of Primus Partners stated, “Quantum technology holds the potential to solve some of the most complex problems in materials science, drug discovery, financial modeling, and cryptography. This technology will significantly enhance national security, drive economic growth, and create millions of jobs. Our survey clearly indicates that industry leaders recognise the urgent need for strategic investments and skill development in this field.”

With global competition accelerating, India must act quickly. 32.6% of respondents believe practical quantum applications will be realised within 3-5 years, while 27.7% estimate it will take over five years before quantum computing becomes widely deployed. This timeline underscores the urgency for India to make the necessary investments in R&D, build the required talent pool, and forge global partnerships.

India’s Gaming Sector Set for Record Growth with Rising Gamer Spending and Esports Expansion: Report

The latest Niko Partners 2024 India Gamer Behavior & Market Insights Report highlights the growth of India’s gaming industry over the next five years, projecting a 5-year CAGR of 11.1% to $1.4 billion by 2028.

Commenting on the report, Shiva Nandy, Founder and CEO of Skyesports, said: “The latest Niko Partners 2024 India Gamer Behavior & Market Insights Report aligns with our internal assessment of India’s gaming landscape. As gamers increasingly prioritize enjoyment and are willing to invest in games that meet their expectations, it’s clear that the industry is evolving rapidly. At Skyesports, our focus on a diverse range of titles catering to mobile and PC gamers aligns perfectly with this trend. We believe that the growth in gamer spending and engagement will drive the expansion of esports, capture the attention of global publishers, and attract more viewers and brands to the esports ecosystem. At this rate, in a few years, we envision an Indian gaming community where multiple titles enjoy popularity across different genres and platforms. We’re excited to be at the forefront of this transformation and remain committed to fostering a vibrant esports ecosystem.”

This strong growth, which Niko Partners says is the fastest among all the markets it tracks, is driven by a rise in player spending. 77.3% of PC gamers reported in Q1 2024 that they spent more on PC games compared to the same period last year. This figure is higher than for mobile and console gaming.

With a growing economy, increased smartphone penetration, and esports tournaments, Niko Partners expects gaming engagement to grow further, leading to higher Average Revenue Per User (ARPU).

Two-thirds of Indian gamers now prioritize enjoyment, which is driving increased spending on games that meet their expectations. Super-hardcore gamers spend 2.2x more per month than casual gamers, with female gamers spending 8.5% more than males.

Additionally, the report highlights that 65.4% of gamers are involved in esports, with esports fans spending 12% more on games than non-esports participants.

“In 2024, India’s gamers are more discerning and more willing to spend money on gaming than they were just a few years ago,” said Lisa Hanson, CEO of Niko Partners. “The 5-year CAGR of 11.1% that we forecast for India’s video games industry (to $1.4 billion by 2028) is based on trends including increased playtime and spending, greater engagement with esports, increased investment from the private sector, and support from both central and state governments to build the video games and esports industry.”

Skyesports, one of India’s leading esports companies, is already capitalizing on these trends, boasting a diversified portfolio of games and IPs, while continuously investing in PC games. Currently, the company is working with THE FINALS, an exciting FPS game available on PC and console, for its esports tournaments and has also announced a ₹14.6 Crore roadmap for Counter-Strike 2, another PC game in 2025. Earlier this year, it organized the LG UltraGear Skyesports Champions Series for the mobile battle royale title Battlegrounds Mobile India. The tournament recorded high levels of viewership, with a peak concurrent viewership of more than 100,000 and over 1.9 million watch hours.

All Indian Salt and Sugar Brands, Packaged or Unpackaged, Contain Micro Plastics - Study

A recent study by the environmental research organization Toxics Link revealed that all tested Indian salt and sugar brands, whether packaged or unpackaged, contain microplastics.

The study, titled "Microplastics in Salt and Sugar" and conducted by the environmental research organisation Toxics Link, examined 10 varieties of salt-as well as five varieties of sugar, procured from both online and local markets.

The findings disclosed the presence of microplastics in all tested samples of salt and sugar, manifesting in various forms such as fibres, pellets, films, and fragments. These microplastics ranged in size from 0.1 mm to 5 mm.

Notably, iodised salt exhibited the highest concentration of microplastics, primarily in the form of multi-coloured thin fibres and films.

The study analyzed 10 types of salt (including table salt, rock salt, sea salt, and local raw salt) and five types of sugar purchased from both online and local markets. These microplastics were found in various forms, including fibers, pellets, films, and fragments, with sizes ranging from 0.1 mm to 5 mm. The much over-hyped iodized salt had the highest concentration of microplastics (89.15 pieces per kilogram), while organic rock salt had the lowest (6.70 pieces per kilogram). This discovery underscores the need for comprehensive research into the long-term health impacts of microplastics on human health, as these tiny plastic particles can enter our bodies through food, water, and air.

The potential health risks of consuming microplastics are a growing concern. Although research is ongoing, below are some known and suspected effefood. 
1. Gastrointestinal Issues: Microplastics can accumulate in the digestive tract, potentially causing irritation, inflammation, and disruption of gut microbiota.

2. Toxic Chemicals: Microplastics can absorb and release toxic chemicals (such as phthalates and bisphenol A) that may leach into the body upon ingestion.

3. Immune System Impact: Exposure to microplastics might affect immune responses, althoLgh the exact mechanisms are not fully understood.

4. Organ Damage: Some studies suggest that microplastics could harm organs like the liver, kidneys, and lungs.

5. Cancer Risk: While not definitively proven, there's concern that long-term exposure to microplastics could increase cancer risk.

It is to be noted that minimizing plastic use and supporting sustainable practices can help reduce microplastic pollution.

The Food Safety and Standards Authority of India (FSSAI) has taken swift action in response to the alarming findings from the study by Toxics Link.

In March 2024, FSSAI launched an ambitious project titled “Micro-and Nano-Plastics as Emerging Food Contaminants: Establishing Validated Methodologies and Understanding the Prevalence in Different Food Matrices.”

On August 18, 2024, FSSAI then launched an innovative project to address the growing concern of microplastic contamination in Indian food. The project aims to develop and validate analytical methods for detecting micro and nano-plastics in various food products. It also assesses their prevalence and exposure levels in India.

FSSAI collaborates with leading research institutions across the country, including the CSIR-Indian Institute of Toxicology Research (Lucknow), ICAR-Central Institute of Fisheries Technology (Kochi), and the Birla Institute of Technology and Science (Pilani).

The project focuses on developing standard protocols for micro/nano-plastic analysis, conducting intra- and inter-laboratory comparisons, and generating critical data on microplastic exposure levels among consumers.

While global studies highlight the presence of microplastics in various foods, this project specifically generates reliable data for India. It will guide the formulation of effective regulations and safety standards to protect public health.

The project aims to:

• Develop Detection Methods: FSSAI is working on standard protocols to detect micro and nano-plastics in food items. 
• Assess Prevalence: By assessing the prevalence and exposure levels of these harmful particles, FSSAI aims to improve food safety across India.
• Establish Safety Standards: The initiative focuses on understanding the prevalence of microplastics in different food matrices, which are the materials that make up the food products we consume.

This proactive step by FSSAI underscores the gravity of microplastic contamination and its potential health risks.

India’s Wind Energy Installations Down by 32% YoY in Q2 2024

In Q2 2024, India added 770 MW of wind energy capacity, which is a 32% decrease compared to the 1,139.9 MW added in Q2 2023, according to Mercom India Research. This decline was primarily due to delays in granting grid connectivity, land availability issues, right-of-way challenges, and the early onset of the monsoon in some states.

Karnataka led the capacity additions with 450 MW, followed by Tamil Nadu with 186 MW, Gujarat with 130 MW, and Maharashtra with 4.2 MW. Despite the quarterly drop, the cumulative installed wind capacity in India rose to 46.6 GW by the end of June 2024.

During Q2 2024, several notable wind energy projects were commissioned in India. Juniper Green’s 25.2 MW Wind Power Project in Gujarat. ReNew Power and a few other companies also commissioned significant capacities during this period.

As of the end of Q2 2024, India's cumulative installed wind energy capacity reached 46.6 GW. This represents a 1.7% increase from the 45.9 GW recorded at the end of March 2024.

Wind energy projects in India face several challenges. Securing land for wind farms can be difficult due to high land costs, legal disputes, and opposition from local communities. Delays in obtaining grid connectivity approvals and inadequate transmission infrastructure can hinder project timeliness.

Besides these, frequent changes in policies and regulations, along with the shift to auction-based tariffs, have created uncertainty and slowed down project implementation.

By 2030, India aims to achieve a cumulative installed wind energy capacity of 140 GW. However, experts suggest that a more realistic target might be around 100 GW by the end of the decade.

In June, Indian government approved the Viability Gap Funding (VGF) scheme to support the development of offshore wind energy projects. The scheme has a total outlay of ₹7,453 crore, which includes ₹6,853 crore for the installation and commissioning of 1 GW of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu) and ₹600 crore for upgrading two ports to meet the logistics requirements.

Accenture Estimates That AWS Can Help Indian Organisations Reduce Associated Carbon Emissions by Upto 99% Compared to On-Premises

AWS can help Indian organisations reduce carbon emissions of AI workloads

New study estimates workloads optimised on Amazon Web Services (AWS) can help organisations in India reduce associated carbon emissions by up to 99% compared to on-premises

A new study commissioned by Amazon Web Services (AWS) and completed by Accenture shows that an effective way to minimise the environmental footprint of leveraging Artificial Intelligence (AI) is by moving IT workloads from on-premises infrastructure to AWS cloud data centres in India and around the globe. Accenture estimates that AWS’s global infrastructure is up to 4.1 times more efficient than on-premises. For Indian organisations, the total potential carbon reduction opportunity for AI workloads optimised on AWS is up to 99% compared to on-premises data centres.

The research states that simply utilising AWS data centres for compute-heavy, or AI, workloads in India yields a 98% reduction in carbon emissions compared to on-premises data centres. This is credited to AWS’s utilisation of more efficient hardware (32%), improvements in power and cooling efficiency (35%), and additional carbon-free energy procurement (31%). Further optimising on AWS by leveraging purpose-built silicon can increase the total carbon reduction potential of AI workloads to up to 99% for Indian organisations that migrate to and optimise on AWS.

“Considering 85% of global IT spend by organisations remains on-premises, a carbon reduction of up to 99% for AI workloads optimised on AWS in India is a meaningful sustainability opportunity for Indian organisations,” said Jenna Leiner, Head of Environment Social Governance (ESG) and External Engagement, AWS Global. “As India accelerates towards its US$1 trillion-dollar digital opportunity and encourages investments into digital infrastructure, sustainability innovations and minimising IT related carbon emissions will be critical in also helping India meet its net-zero emissions by 2070 goal. This is particularly important given the rising adoption of AI. AWS is constantly innovating for sustainability across our data centres —optimising our data centre design, investing in purpose-built chips, and innovating with new cooling technologies - so that we continuously increase energy efficiency to serve customer compute demands.”

“This research shows that AWS's focus on hardware and cooling efficiency, carbon-free energy, purpose-built silicon, and optimized storage can help organizations reduce the carbon footprint of AI and machine learning workloads,” said Sanjay Podder, global lead for Technology Sustainability Innovation at Accenture. “As the demand for AI continues to grow, sustainability through technology can play a crucial role in helping businesses meet environmental goals while driving innovation.”

Sustainable chip technology innovation – purpose-built silicon

One of the most visible ways AWS is innovating for energy efficiency is through the company’s investment in AWS chips. Launched in 2018, the custom AWS-engineered general purpose processor, Graviton, was the first-of-its-kind to be deployed at scale by a major cloud provider. The latest Graviton4 offers four times the performance of Graviton, and while Graviton3 uses 60% less energy for the same performance as comparable Amazon EC2 instances (where the compute happens in a data centre), Graviton4 is even more energy efficient.

AWS customers are also benefiting from the carbon reduction potential of Graviton. Paytm, India’s leading payments and financial services distribution platform, witnessed a reduction in workload carbon intensity by adopting Graviton processors, reporting up to 47% estimated decrease in carbon emissions per transaction. Similarly, IBS Software, a leading SaaS solutions provider to the global travel industry, reported that other than improving performance and reducing cost by adopting Graviton processors, the company saw a 40% reduction in carbon emissions per instance hour.

Running generative AI applications in a more sustainable way requires innovation at the silicon level with energy efficient hardware. To optimise performance and energy consumption, AWS developed purpose-built silicon like the AWS Trainium chip and AWS Inferentia chip to achieve significantly higher throughput than comparable accelerated compute instances. AWS Trainium cuts the time taken to train generative AI models—in some cases from months to hours. This means building new models requires less money and power, with energy-consumption reductions of almost one third/up to 29%. AWS Inferentia is AWS’s most power-efficient machine learning inference chip. AWS Inferentia2 machine learning accelerator delivers up to 50% higher performance per watt and can reduce costs by up to 40% against comparable instances. These purpose-built accelerators enable AWS to efficiently execute AI models at scale. This translates to a reduced infrastructure footprint for similar workloads, resulting in enhanced performance per watt of power consumption.

Improving energy efficiency across AWS infrastructure

Through innovations in engineering—from electrical distribution to cooling techniques, AWS’s infrastructure is able to operate closer to peak energy efficiency. AWS optimises resource utilisation to minimise idle capacity, and continuously improves the efficiency of its infrastructure. For example, AWS removed the large central Uninterruptible Power Supply (UPS) from its data centre design to instead use small battery packs and custom power supplies that AWS integrates into every rack, which has improved power efficiency and has further increased availability. Every time power is converted from one voltage to another, or from AC to DC and vice versa, some power is lost in the process. By eliminating the central UPS, AWS are able to reduce these conversions. Additionally, AWS have optimised rack power supplies to reduce energy loss in that final conversion. Combined, these changes reduce energy conversion loss by about 35%.

After powering AWS’s server equipment, cooling is one of the largest sources of energy use in AWS data centres. To increase efficiency, AWS uses different cooling techniques, including free air cooling depending on the location and time of year, as well as real-time data to adapt to weather conditions. Implementing these innovative cooling strategies is more challenging on a smaller scale at a typical on-premises data centre. AWS’s latest data centre design seamlessly integrates optimised air-cooling solutions alongside liquid cooling capabilities for the most powerful AI chipsets, like the NVIDIA Grace Blackwell Superchips. This flexible, multimodal cooling design allows AWS to extract maximum performance and efficiency whether running traditional workloads or AI models.

According to the study, AWS’s additional carbon-free energy procurement in India contributes 31% in carbon emissions reduction for compute-heavy workloads and 44% for storage-heavy workloads. Aligning with Amazon's commitment to achieving net-zero carbon emissions across all operations by 2040, AWS is rapidly transitioning its global infrastructure to match electricity use with 100% carbon-free energy. Amazon met its 100% renewable energy goal seven years ahead of schedule. In India 100% of the electricity consumed by AWS data centres was matched with renewable energy sources procured in country in 2022 and 2023. This is due to Amazon’s investment in 50 renewable energy projects in India with an estimated 1.1 gigawatts of renewable energy capacity, enough energy to power more than 1.1 million homes in New Delhi each year.

57% of Indian Enterprises Allocate Less Than 30% of Technology Spending to Digital Spend – Dassault Systèmes–NASSCOM Report

• Virtual Twin Technology Impact Report from Dassault Systèmes and nasscom Highlights 2x Growth in Virtual Twin Adoption in India
• 90% of the enterprises surveyed are aware of digital and virtual twins
• 45% of virtual twin deployments take nearly 12-24 months at each level, indicating the time-intensive technology discovery-to-production cycle with each new virtual twin implementation
• 33% of the virtual twin initiatives in life sciences are driven by top leadership (CXOs), compared to just 22% on average
• 3X more life sciences companies indicate dependence on downstream companies’ virtual twin adoption for their own virtual twin impact

Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) and nasscom today released a report on the adoption and impact of virtual twin technology. The report reveals a twofold increase in virtual twin implementations post-pandemic. Virtual twin adoption in India could play a crucial role in accelerating the design-to-realization process, helping organizations achieve their sustainability and circularity goals across the value chain.

Here are the key findings for India:

Digital and Process Maturity

• 57% of Indian enterprises allocate less than 30% of technology spending to digital spend
• Over 50% of the enterprises also indicate patchy digitalization, with only the key functions digitalized, but in silos, thereby limiting effective ROI realization
• Less than 1-in-5 companies have put in place advanced process automation; the majority have implemented Retrofitted Process Automation (RPA)

Virtual Twin Budgets and Scale

• 25% of the companies do not have formal budgets for virtual twins
• 80% of the companies have less than 7% of tech spend allocated to virtual twin adoption
• 63% of Indian companies deploy virtual twins at the product or process level. 40% of those companies are at the product level in using virtual twins, 23% at the process level. Precision in product-market fit came as one of the top three objectives for implementing virtual twins.

Deployment Time

• 75% of virtual twin implementations in India take between 12-24 months of deployment time at each level of product, process, or system virtual twin

Primary Business Objectives

• Precision in product market fit
• Manufacturing process efficiencies
• Remote maintenance and worker safety

Supplier Strategy

• 75% of Indian enterprises cite supplier selection as a major challenge
• 50% are evaluating suppliers

Tech Readiness

• 70% of Indian firms indicate that across software, IT-OT hardware, and connectivity tech, they are still in the PoC/pilot stages
• Analytics and AI/ML applications are some of the least productionized, after high-definition 3D software and other specialist applications. 
• 67% of enterprises seek either best-of-breed software packages or partner with large managed service providers for their virtual twin applications. 

This report is based on a survey of 130 companies in India as well as across Europe and APAC, focusing on large and mid-sized enterprises with annual recurring revenue (ARR) of $500 million and above. The survey spans four major industry segments: continuous manufacturing, discrete manufacturing, public infrastructure and smart cities, and life sciences and healthcare.

“Virtual twin technology is poised at the brink of transformative potential, marked by a sharp increase in awareness and early adoptions since the pandemic. Although full-scale implementations and dedicated budgets remain limited, the focus on optimizing assets and processes opens up expansive opportunities. Overcoming hurdles in software procurement, enhancing top-level commitment and ecosystem synergies can unlock groundbreaking innovations, driving industries toward a more efficient and digitally integrated future,” said Sangeeta Gupta, Senior Vice President & Chief Strategy Officer at Nasscom.

“With our latest report on virtual twin technology impact and adoption in collaboration with nasscom, we are encouraged by the significant growth in adoption and the emergence of industry-specific use cases. Our report underscores the imperative for organizations to secure top leadership commitment and navigate software procurement challenges to achieve production-grade capabilities. We remain committed to empowering businesses in their journey towards enhanced performance and operational efficiency through virtual twin technology, driving sustainable growth and innovation across industries,” said Deepak NG, Managing Director, India, Dassault Systèmes.

For more information:

Dassault Systèmes’ 3DEXPERIENCE platform, 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions: http://www.3ds.com

Link to the report: https://tinyurl.com/VirtualTwins