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India’s AI rules take shape; TCS profit jumps 15%
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The government is set to release a consultation paper on AI regulations within a month. This and more in today’s ETtech Top 5.
Also in the letter:
■ Amazon India layoffs
■ Govt rejects Musk’s Starlink claims
■ CoRover wins govt AI tender
Union IT minister Ashwini Vaishnaw on Thursday said the government will release a consultation paper on artificial intelligence (AI) regulations within a month, focussing on key aspects such as AI safety, deepfakes, skilling, and a human-first approach.
Techno-legal solution: Vaishnaw said the government has always maintained that AI and other technologies cannot be regulated by law alone. "We have to bring a techno-legal solution," the minister said, adding that stakeholders must be brought on board. The minister made it clear that, "The industry has to take the primary responsibility."
The government has directed banks to develop a sector-wide quantum transition and adoption strategy, along with an AI resilience framework. This follows the identification of the banking, financial services, and insurance (BFSI) sector as critical information infrastructure, said people familiar with the matter.
Quantum risk: Banks have been asked to assess post-quantum vulnerabilities and initiate mitigation measures, including protection against harvest now, decrypt later (HNDL) threats, where cyber adversaries stockpile encrypted banking data for future quantum decryption.
Why it matters: In May, the Department of Science & Technology said in a report, titled 'Quantum-Safe Ecosystem in India', that adversaries might already be intercepting and storing encrypted data using HNDL and trust now, forge later (TNFL) campaigns, intending to exploit the same once quantum capabilities mature.
Verbatim: "The transition to quantum-safe security is therefore a matter of strategic foresight, national security, and economic resilience," the report said.
IT services major Tata Consultancy Services (TCS) on Thursday reported a 15% on-year growth in consolidated net profit to Rs 13,884 crore for the second quarter of FY27. The same stood at Rs 12,075 crore a year ago. The company's board has declared a second interim dividend of Rs 12 per share for FY27.
AI revenue: TCS said annualised AI revenue reached $3.1 billion in Q2 and crossed 10% of earnings. Aarthi Subramanian, executive director, president and chief operating officer, said AI momentum remained strong, with demand for AI-native solutions, AI-led enterprise transformation, autonomous global business services, and cybersecurity.
Deal details:
Amazon’s latest global layoffs of around 1,000 employees have impacted at least 100 jobs in India, primarily across its retail and customer service functions, people aware of the development told us.
Amazon says: Responding to ET's queries, an Amazon spokesperson said, "We’ve adjusted parts of our Stores business because we believe this structure will better enable us to deliver on our priorities. As part of these changes, we’ve made the difficult decision to eliminate a small number of roles, and we’re committed to supporting affected employees through their transition."
Timing: The layoffs came a day after Amazon's biggest flagship sale event in the country, Great Indian Festival, opened on October 7.
Earlier cuts: The global ecommerce giant laid off at least 500 employees across its India tech, product, and operations teams this January.
AI push: At the time, Amazon had said that the mass layoffs are part of Project Dawn, which aims to reduce bureaucracy, strengthen operations, and integrate AI efficiency across the firm.
The government has rejected SpaceX owner Elon Musk’s allegations that "oligarchs" are blocking Starlink’s entry into India, saying that all three licensed operators (OneWeb India Communications, Jio Satellite Communications, and Starlink Satellite Communications) are undergoing security assessments and are at the same regulatory stage.
Security compliance: The communications ministry on Thursday said operators must demonstrate compliance with security conditions before moving to the next step of seeking spectrum assignment.
Starlink’s status: The American satellite internet company is awaiting security clearance from the government, having already secured a satcom permit and authorisation from the space regulator.
Starlink infra: Speaking at the India Mobile Congress (IMC), Lauren Dreyer, SpaceX’s vice president for Starlink business operations, said the company has built 20 gateway sites and hundreds of antennas in India and has invested in infrastructure and adapted its operations to meet Indian security and regulatory requirements, including keeping Indian users’ data within the country.
The centre has chosen Bengaluru-based agentic generative AI platform CoRover to develop a unified AI assistant and bot platform, the company announced on Wednesday.
DigiLocker first: The implementation will commence with the centre’s DigiLocker platform, potentially within the next four months, CoRover founder and CEO Ankush Sabharwal told us.
Tender process: The tender was released by the National e-Governance Division (NeGD) under the ministry of electronics and information technology (MeitY). CoRover.ai secured the highest technical score and was the only L1 bidder, making it the sole selected partner, the company said.
Bidders: The selection process saw participation from over 80 companies including global consulting firms Deloitte, EY, PwC, KPMG, IT services providers Tata Consultancy Services, NEC, and Kyndryl (IBM), and AI firms Jio Haptik, Fractal, and Gnani, among others.
Also in the letter:
■ Amazon India layoffs
■ Govt rejects Musk’s Starlink claims
■ CoRover wins govt AI tender
India to release AI regulation consultation paper in a month; safety, deepfakes in focus
Union IT minister Ashwini Vaishnaw on Thursday said the government will release a consultation paper on artificial intelligence (AI) regulations within a month, focussing on key aspects such as AI safety, deepfakes, skilling, and a human-first approach.
Techno-legal solution: Vaishnaw said the government has always maintained that AI and other technologies cannot be regulated by law alone. "We have to bring a techno-legal solution," the minister said, adding that stakeholders must be brought on board. The minister made it clear that, "The industry has to take the primary responsibility."
Govt asks banks to develop a sector-wide quantum transition & AI resilience framework
The government has directed banks to develop a sector-wide quantum transition and adoption strategy, along with an AI resilience framework. This follows the identification of the banking, financial services, and insurance (BFSI) sector as critical information infrastructure, said people familiar with the matter.
Quantum risk: Banks have been asked to assess post-quantum vulnerabilities and initiate mitigation measures, including protection against harvest now, decrypt later (HNDL) threats, where cyber adversaries stockpile encrypted banking data for future quantum decryption.
Why it matters: In May, the Department of Science & Technology said in a report, titled 'Quantum-Safe Ecosystem in India', that adversaries might already be intercepting and storing encrypted data using HNDL and trust now, forge later (TNFL) campaigns, intending to exploit the same once quantum capabilities mature.
Verbatim: "The transition to quantum-safe security is therefore a matter of strategic foresight, national security, and economic resilience," the report said.
TCS Q2 results: Profit rises 15% to Rs 13,884 crore
IT services major Tata Consultancy Services (TCS) on Thursday reported a 15% on-year growth in consolidated net profit to Rs 13,884 crore for the second quarter of FY27. The same stood at Rs 12,075 crore a year ago. The company's board has declared a second interim dividend of Rs 12 per share for FY27.
AI revenue: TCS said annualised AI revenue reached $3.1 billion in Q2 and crossed 10% of earnings. Aarthi Subramanian, executive director, president and chief operating officer, said AI momentum remained strong, with demand for AI-native solutions, AI-led enterprise transformation, autonomous global business services, and cybersecurity.
Deal details:
- Total contract value: TCS recorded $9.6 billion in total contract value from deals during the quarter.
- Porsche: It signed a five-year partnership with Porsche AG and proposed to acquire its Germany-based management and IT consulting subsidiary, MHP.
- Best Buy: TCS will take over Best Buy’s India GCC (global capability centre) and transform it into an AI Capability Center.
Amazon India layoffs: Pink slips handed to employees across retail, customer service roles
Amazon’s latest global layoffs of around 1,000 employees have impacted at least 100 jobs in India, primarily across its retail and customer service functions, people aware of the development told us.
Amazon says: Responding to ET's queries, an Amazon spokesperson said, "We’ve adjusted parts of our Stores business because we believe this structure will better enable us to deliver on our priorities. As part of these changes, we’ve made the difficult decision to eliminate a small number of roles, and we’re committed to supporting affected employees through their transition."
Timing: The layoffs came a day after Amazon's biggest flagship sale event in the country, Great Indian Festival, opened on October 7.
Earlier cuts: The global ecommerce giant laid off at least 500 employees across its India tech, product, and operations teams this January.
AI push: At the time, Amazon had said that the mass layoffs are part of Project Dawn, which aims to reduce bureaucracy, strengthen operations, and integrate AI efficiency across the firm.
Govt rejects Elon Musk’s claims of discrimination in satcom approval process
The government has rejected SpaceX owner Elon Musk’s allegations that "oligarchs" are blocking Starlink’s entry into India, saying that all three licensed operators (OneWeb India Communications, Jio Satellite Communications, and Starlink Satellite Communications) are undergoing security assessments and are at the same regulatory stage.
Security compliance: The communications ministry on Thursday said operators must demonstrate compliance with security conditions before moving to the next step of seeking spectrum assignment.
Starlink’s status: The American satellite internet company is awaiting security clearance from the government, having already secured a satcom permit and authorisation from the space regulator.
Starlink infra: Speaking at the India Mobile Congress (IMC), Lauren Dreyer, SpaceX’s vice president for Starlink business operations, said the company has built 20 gateway sites and hundreds of antennas in India and has invested in infrastructure and adapted its operations to meet Indian security and regulatory requirements, including keeping Indian users’ data within the country.
CoRover wins govt tender to build national unified AI assistant platform
The centre has chosen Bengaluru-based agentic generative AI platform CoRover to develop a unified AI assistant and bot platform, the company announced on Wednesday.
DigiLocker first: The implementation will commence with the centre’s DigiLocker platform, potentially within the next four months, CoRover founder and CEO Ankush Sabharwal told us.
Tender process: The tender was released by the National e-Governance Division (NeGD) under the ministry of electronics and information technology (MeitY). CoRover.ai secured the highest technical score and was the only L1 bidder, making it the sole selected partner, the company said.
Bidders: The selection process saw participation from over 80 companies including global consulting firms Deloitte, EY, PwC, KPMG, IT services providers Tata Consultancy Services, NEC, and Kyndryl (IBM), and AI firms Jio Haptik, Fractal, and Gnani, among others.
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