India's Retail Inflation

India's retail inflation eased to a four-month low of 5.2% in December, primarily due to a decline in food prices.

Key Economic Insights

• Economists are divided on a possible rate cut in February, citing the need to monitor geopolitical developments.
• The rupee depreciation has led to concerns about higher imported inflation, especially for oil products.
• The rupee fell below 86 per dollar, marking a significant depreciation.
• Average inflation in 2024 was 5%, lower than the 5.7% recorded in 2023.
• Rural inflation was higher at 5.8% compared to 4.6% in urban areas.

Monetary Policy

The Reserve Bank's Monetary Policy Committee (MPC) will meet from February 5-7. The policy rate has been unchanged at 6.5% for 11 consecutive times.

• Aditi Nayar emphasized that the significant decline in vegetable prices might lead some MPC members to consider an early rate cut.
• Paras Jasrai noted that fiscal arithmetic could influence monetary policy actions.

Inflation Details

• Core inflation, excluding food and fuel, was at a three-month low of 3.6% in December.
• Food inflation fell to a four-month low of 8.4% in December from 9% in November.
• Vegetable prices increased by 26.6% in December but were at a four-month low overall.
• Inflation was higher in 10 out of 22 states and UTs compared to the national average, with Chhattisgarh recording the highest at 7.6%.

Future Projections

• The RBI projects inflation to be at 4.5% for the January-March quarter.

Government’s ₹10,000-crore IndiaAI Mission

The IndiaAI Mission, a governmental initiative with a budget of ₹10,371.92 crore approved in March last year, aims to significantly enhance India's capabilities in artificial intelligence by implementing solutions with graphics processing units (GPU).

Key Objectives

• Distribute 10,000 GPUs to support startups, researchers, students, and academicians.

Budget Allocation

• 44% of the total budget (₹4,563.63 crore) is designated for providing compute capacity with over 10,000 GPUs over a five-year period.

Bidder Selection and Process

• 13 eligible bidders were selected from 19 applicants.
• Bidders were evaluated based on eligibility and technical criteria.
• Technical presentations were made to the Ministry of Electronics and IT (MeitY).

Notable Bidders

• Prominent companies include Jio Platforms, Tata Communications, Yotta Data Services, and E2E Networks (in partnership with L&T).
• Other bidders include Ctrl S Datacenters, NxtGen Datacenter and Cloud Technologies, CloudThat Technologies, CMS Computers, Hostin Services, I2k2 Networks, Locuz Enterprise Solutions, Orient Technologies, and Vensysco Technologies.

Next Steps

• Commercial bids will be opened for technically qualified bidders.
• Empanelment duration is set for 36 months, with the potential for a 12-month extension.

Digital Personal Data Protection (DPDP) Act Meeting

The government is organizing a meeting with various stakeholders to discuss the draft rules proposed under the Digital Personal Data Protection (DPDP) Act.

Stakeholders Involved

• Industry associations
• Technology policy groups
• Lawyers
• Other relevant stakeholders

Key Government Representatives

• Ashwini Vaishnaw, Union Minister for Electronics and Information Technology
• Jitin Prasada, Minister of State for Electronics and Information Technology
• Other ministry officials

The meeting aims to gather feedback on the draft rules released earlier this month, with comments being accepted until February 18.

Key Provisions of the Draft Rules

• Users below the age of 18 will need verifiable parental consent to access social media.

Context and Relevance

This meeting is part of a broader strategy to position India as a key player in global manufacturing and technology, often referred to as the "China Plus One" strategy. It also ties into discussions on fiscal policies and India's aspirations in advancing its cosmic research and development.

Jeff Bezos and the Space Industry

Jeff Bezos, founder of Amazon and Blue Origin, emphasized the potential for multiple successful entities within the space industry, mentioning both his company Blue Origin and Elon Musk's SpaceX.

• Bezos predicts that new applications in space will increase demand for large capacity, benefiting various companies.
• He acknowledges the anticipated success of SpaceX alongside Blue Origin and future companies yet to emerge.

Blue Origin's Ambitions

Bezos, along with Blue Origin CEO Dave Limp, expressed confidence in their New Glenn rocket, which recently launched successfully.

• Blue Origin aims to conduct six to eight New Glenn flights in 2025.
• The company has a $10-billion backlog of launch contracts.
• New Glenn is integral to Blue Origin's plans for launching commercial satellites and supporting NASA and the US Defense Department.
• It also supports NASA's Artemis program, aimed at returning humans to the Moon.

Concerns about NASA's Continuity

Bezos expressed hope for consistent support for NASA's missions, regardless of political changes.

• He emphasized the importance of maintaining continuity in NASA's long-term projects.
• Bezos criticizes the tendency of programs to start and stop with different administrations.

NASA's Artemis Mission and Future Plans

The future direction of NASA's Artemis mission is uncertain, with differing perspectives from influential figures like Elon Musk, who believes the Moon is a distraction compared to Mars exploration.