#Fact Check – Analysis of Viral Claims Regarding India's UNSC Permanent Membership

Introduction

Cybersecurity remains a crucial component in the modern digital era, considering the growing threat landscape caused by our increased reliance on technology and the internet. The Karnataka Government introduced a new ‘Cyber Security Policy 2024’ to address increasing cybercrimes and enhance protection measures for the State's digital infrastructure through awareness, skill development, public-private collaborations, and technology integration. Officials stated that the policy highlights various important aspects including raising awareness and providing education, developing skills, supporting the industry and start-ups, as well as forming partnerships and collaborations for enhancing capacity.

Key Highlights

• The policy consists of two components. The initial segment emphasizes creating a robust cyber security environment involving various sectors such as the public, academia, industry, start-ups, and government. The second aspect of the policy aims to enhance the cybersecurity status of the State's IT resources. Although the initial section will be accessible to the public, the second portion will be restricted to the state's IT teams and departments for their IT implementation.
• The Department of Electronics, IT, BT and S&T, the Department of Personnel and Administrative Reforms (e-Governance),and the Home Department, in collaboration with stakeholders from government and private sectors, have collectively formulated this policy. The Indian Institute of Science, the main institute for the state's K-tech Centre of Excellence for Cyber Security (CySecK), also examined the policy.
• The Department of Electronics, IT, BT and S&T, the Department of Personnel and Administrative Reforms (e-Governance),and the Home Department, in collaboration with stakeholders from government and private sectors, have collectively formulated this policy. The Indian Institute of Science, the main institute for the state's K-tech Centre of Excellence for Cyber Security (CySecK), also examined the policy.
• Approximately ₹103.87 crore will be spent over five years to implement the policy, which would be fulfilled from the budget allocated to the Department of Information Technology and Biotechnology and Science & Technology. A total of ₹23.74 crore would be allocated for offering incentives and concessions.
• The policy focuses on key pillars of building awareness and skills, promoting research and innovation, promoting industry and start-ups, partnerships and collaborations for capacity building.
• Karnataka-based undergraduate and postgraduate interns will receive a monthly stipend of INR 10,000- Rs15,000 fora maximum duration of three months under the internship program. The goal is to support 600 interns at the undergraduate level and 120 interns at the post-graduate level within the policy timeframe.
• Karnataka-based start-ups collaborating with academic institutes can receive matching grants of up to 50% of the total R&D cost for cybersecurity projects, or a maximum of ₹50 lakh.
• Reimbursement will be provided for expenses up to a maximum of INR 1 Lakh for start-ups registered with Karnataka Start-up Cell who engage CERT-In empanelled service providers from Karnataka for cyber security audit.
• The Karnataka government has partnered with Meta to raise awareness on cyber security. By reaching out to educational institutions, schools and colleges, it is piloted to provide training to 1 lakh teachers and educate 1 million children on online safety.

CyberPeace Policy Wing Outlook

The Cyber Security Policy, 2024 launched by the Karnataka government is a testament to the state government's commitment to strengthening the cyber security posture and establishing cyber resilience. By promoting and supporting research and development projects, supporting startups, and providing skill training internships, and capacity building at a larger scale, the policy will serve asa positive step in countering the growing cyber threats and establishing a peaceful digital environment for all. The partnership and collaboration with tech companies will be instrumental in implementing the capacity-building initiatives aimed at building cognitive and skill defenses while navigating the digital world. The policy will inspire other state governments in their policy initiatives for building safe and secure cyber-infrastructure in the states by implementing strategies tailored to the specific needs and demands of each state in building safe digital infrastructure and environment.

References:

• https://www.hindustantimes.com/cities/bengaluru-news/karnataka-govt-launches-new-cyber-security-policy-amid-frequent-scams-101722598078117.html
• https://ciso.economictimes.indiatimes.com/amp/news/grc/karnataka-govt-launches-new-cyber-security-policy/112214121
• https://cybermithra.in/2024/08/09/karnataka-cyber-security-policy/

• https://itbtst.karnataka.gov.in/storage/pdf-files/ITBT48ADM2021EngCABINET-GO.pdf

Introduction

The Indian Cabinet has approved a comprehensive national-level IndiaAI Mission with a budget outlay ofRs.10,371.92 crore. The mission aims to strengthen the Indian AI innovation ecosystem by democratizing computing access, improving data quality, developing indigenous AI capabilities, attracting top AI talent, enabling industry collaboration, providing startup risk capital, ensuring socially-impactful A projects, and bolstering ethical AI. The mission will be implemented by the'IndiaAI' Independent Business Division (IBD) under the Digital India Corporation (DIC) and consists of several components such as IndiaAI Compute Capacity, IndiaAI Innovation Centre (IAIC), IndiaAI Datasets Platform, India AI Application Development Initiative, IndiaAI Future Skills, IndiaAI Startup Financing, and Safe & Trusted AI over the next 5 years.

This financial outlay is intended to befulfilled through a public-private partnership model, to ensure a structured implementation of the IndiaAI Mission. The main objective is to create and nurture an ecosystem for India’s AI innovation. This mission is intended to act as a catalyst for shaping the future of AI for India and the world. AI has the potential to become an active enabler of the digital economy and the Indian government aims to harness its full potential to benefit its citizens and drive the growth of its economy.

Key Objectives of India's AI Mission

●     With the advancements in data collection, processing and computational power, intelligent systems can be deployed in varied tasks and decision-making to enable better connectivity and enhance productivity.

●     India’s AI Mission will concentrate on benefiting India and addressing societal needs in primary areas of healthcare, education, agriculture, smart cities and infrastructure, including smart mobility and transportation.

●     This mission will work with extensive academia-industry interactions to ensure the development of core research capability at the national level. This initiative will involve international collaborations and efforts to advance technological frontiers by generating new knowledge and developing and implementing innovative applications.

The strategies developed for implementing the IndiaAI Mission are via Public-Private Partnerships, Skilling initiatives and AI Policy and Regulation. An example of the work towards the public-private partnership is the pre-bid meeting that the IT Ministry hosted on 29th August2024, which saw industrial participation from Nvidia, Intel, AMD, Qualcomm, Microsoft Azure, AWS, Google Cloud and Palo Alto Networks.

Components of IndiaAI Mission

The IndiaAI Compute Capacity: The IndiaAI Compute pillar will build a high-end scalable AI computing ecosystem to cater to India's rapidly expanding AI start-ups and research ecosystem. The ecosystem will comprise AI compute infrastructure of 10,000 or more GPUs, built through public-private partnerships. An AI marketplace will offer AI as a service and pre-trained models to AI innovators.

The IndiaAI Innovation Centre will undertake the development and deployment of indigenous Large Multimodal Models (LMMs) and domain-specific foundational models in critical sectors. The IndiaAI Datasets Platform will streamline access to quality on-personal datasets for AI innovation.

The IndiaAI Future Skills pillar will mitigate barriers to entry into AI programs and increase AI courses in undergraduate, master-level, and Ph.D. programs. Data and AI Labs will be set up in Tier 2 and Tier 3 cities across India to impart foundational-level courses.

The IndiaAI Startup Financing pillar will support and accelerate deep-tech AI startups, providing streamlined access to funding for futuristic AI projects.

The Safe & Trusted AI pillar will enable the implementation of responsible AI projects and the development of indigenous tools and frameworks, self-assessment check lists for innovators, and other guidelines and governance frameworks by recognising the need for adequate guardrails to advance the responsible development, deployment, and adoption of AI.

CyberPeace Considerations for the IndiaAI Mission

●     Data privacy and security are paramount as emerging privacy instruments aim to ensure ethical AI use. Addressing bias and fairness in AI remains a significant challenge, especially with poor-quality or tampered datasets that can lead to flawed decision-making, posing risks to fairness, privacy, and security.

●     Geopolitical tensions and export control regulations restrict access to cutting-edge AI technologies and critical hardware, delaying progress and impacting data security. In India, where multilingualism and regional diversity are key characteristics, the unavailability of large, clean, and labeled datasets in Indic languages hampers the development of fair and robust AI models suited to the local context.

●     Infrastructure and accessibility pose additional hurdles in India’s AI development. The country faces challenges in building computing capacity, with delays in procuring essential hardware, such as GPUs like Nvidia’s A100 chip, hindering businesses, particularly smaller firms. AI development relies heavily on robust cloud computing infrastructure, which remains in its infancy in India. While initiatives like AIRAWAT signal progress, significant gaps persist in scaling AI infrastructure. Furthermore, the scarcity of skilled AI professionals is a pressing concern, alongside the high costs of implementing AI in industries like manufacturing. Finally, the growing computational demands of AI lead to increased energy consumption and environmental impact, raising concerns about balancing AI growth with sustainable practices.

Conclusion

We advocate for ethical and responsible AI development adoption to ensure ethical usage, safeguard privacy, and promote transparency. By setting clear guidelines and standards, the nation would be able to harness AI's potential while mitigating risks and fostering trust. The IndiaAI Mission will propel innovation, build domestic capacities, create highly-skilled employment opportunities, and demonstrate how transformative technology can be used for social good and enhance global competitiveness.

References

●     https://economictimes.indiatimes.com/tech/artificial-intelligence/governments-say-aye-to-sovereign-ai/articleshow/113014070.cms

●     https://www.livemint.com/industry/amid-push-for-indian-ai-myriad-challenges-pose-concerns-11720012574665.html

●     https://pib.gov.in/PressReleasePage.aspx?PRID=2012375

●     https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2012355#:~:text=The%20Mission%20will%20be%20implemented,1

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Introduction

In a groundbreaking move, India's Reserve Bank has embarked on a transformative journey with its Central Bank Digital Currency (CBDC) project. As the world grapples with the evolving landscape of digital finance, the implications of India's CBDC initiative extend beyond its borders, potentially reshaping global payment systems. The Union Minister of State for Finance, Shri Pankaj Chaudhary, revealed that on October 7, 2022, the Reserve Bank of India released a proposal note on Central Bank Digital Currency (CBDC). Two pilot projects using blockchain-based technology are described in the concept note: Digital Rupee-Wholesale (e₹-W) and Digital Rupee-Retail (e₹-R). Launched on November 1, 2022, the bulk trading pilot aims to increase intermediary competitiveness, particularly in the resolution of trades in the secondary market involving sovereign debt. In parallel, on December 1, 2022, the retail banking pilot, known as e₹-R, got underway in a limited user group with eight banks taking part in stages.

The digital asset known as e₳-R is issued across financial institutions for Person-to-Person (P2P) and Person-to-Merchant (P2M) transactions. It is intended to serve as a virtual currency that represents legal money and exhibits characteristics similar to actual cash. Based on input gathered during the continuing trial phases, the RBI intends to progressively broaden the pilot project's scope.

Central Bank Digital Currency Pilot Projects

Central Bank Digital Currency (CBDC), which the Central Bank of India is promoting, may easily perform an essential part in payments made across borders, according to Reserve Bank Governor Shaktikanta Das. The CBDC is going to be expanded to the international financial markets after being implemented as a trial in both the retail and wholesale industries.

CBDC in International Payments

He emphasized that although physical currency will still exist, the CBDC will eventually replace all forms of money worldwide.  

"CBDC is going to be the future currency of the world and it is necessary that every central bank, every country works on CBDC," he stated. He also stated that as worldwide commerce moves more and more around science and technology, CBDCs will play a significant role since they can effectively and affordably speed up payment processing across different countries. Regarding India's foreign exchange reserves, the governor stated that the selection to increase the resources as a safety net and protection versus contagion possibilities was made consciously.

CBDCs' Place in the Transnational Economic Revolution

In certain economies worldwide, having a CBDC internationally accessible could lead to more replacements for foreign currencies rather than the home currencies, which could cause financial aggregates to become volatile and change the mix of instruments of exchange.

CBDC may have benefits related to first-mover savings of scale, and other consequences even in everyday circumstances. If nations with global currencies have established CBDCs, they could strengthen current advantages and disadvantages, including consequences, particularly in terms of revenue. In a similar vein, CBDC might alter the structure of international liquidity while safeguarding asset supply. Additionally, and particularly if imposed abruptly, CBDC may, in certain circumstances, result in significant capital movements and associated repercussions on the foreign exchange rate as well as additional asset prices. Furthermore, nations may encounter difficulties in getting ready for virtual currencies issued by central banks.

The worldwide and international scope of CBDCs accessible to immigrants may become particularly apparent in situations where there is a widespread flight safety concern. In these circumstances, converting a CBDC into a foreign currency would make it possible for capital markets to deleverage more quickly. The elimination of debt challenges could show up as tight finance constraints and abrupt swings in foreign exchange markets if CBDCS expedited its flight from uncertainty.

Deposits of Foreign Exchange and Self-Dependency

Reserve Bank Governor Shaktikanta Das stated "We must rely on ourselves. We must maintain our robust reserves. In order to achieve that goal, we have been amassing quite substantial reserves, and the outside world has come to feel quite confident that India would be able to fulfil its contractual responsibilities to the international community no matter what the obstacles," 

Involvement of RBI in the Currency Market

Given that the trading community was confident that the Reserve Bank of India would be capable of and able to fulfil its contractual responsibilities, the value of the Indian rupee did not decline as dramatically. The RBI governor stated that the RBI does participate in the economy, but that "our engagement operates in two ways," he would not hesitate to acknowledge this.

The Value of Macroeconomic and Budgetary Cooperation

According to RBI Governor Das, the RBI makes purchases and sales of dollars based on the direction in which the financial sector is trending. However, the RBI does not intend to set a certain level for the rupee because it does not consider any specific threshold for the Indian rupee's conversion rate against the US dollar. He also emphasized how crucial it is for both the financial and monetary authorities to work together.

Conclusion

India's CBDC project signals a transformative shift in the global digital finance landscape. Governor Shaktikanta Das envisions CBDCs as the future global currency, emphasizing their role in international payments. The potential impact on financial systems, cross-border transactions, and the need for self-reliance underscore the significance of India's CBDC initiative in shaping the evolving dynamics of the digital economy. As the project progresses, close cooperation between financial and monetary authorities becomes imperative for navigating the challenges and opportunities associated with this groundbreaking venture.

References

• https://economictimes.indiatimes.com/news/economy/policy/central-bank-digital-currency-can-play-important-role-in-cross-border-payment-rbi-guv/articleshow/104706717.cms
• https://www.bis.org/cpmi/publ/d174.pdf
• https://bfsi.economictimes.indiatimes.com/news/fintech/explained-how-rbi-is-leveraging-upi-to-push-the-use-of-retail-cbdc/103591989
• https://www.imf.org/en/News/Articles/2022/02/09/sp020922-the-future-of-money-gearing-up-for-central-bank-digital-currency
• https://www.business-standard.com/economy/news/cbdc-pilot-projects-show-promising-results-rbi-governor-shaktikanta-das-123102601171_1.html