Trump’s Tariffs Threaten India’s Diamond Industry and Global Trade Flows

A new investment treaty between the United Kingdom and India is set to make headlines with a provision that will allow companies from either country to sue the other’s government if they believe policy changes have unfairly harmed their investments or profits. This move, confirmed by two sources familiar with the negotiations, marks a significant shift in the approach both nations have taken toward investor protections in recent years.Investor-State Dispute Settlement (ISDS) Back in FocusAt the heart of the treaty is the Investor-State Dispute Settlement (ISDS) mechanism. ISDS allows corporations to take legal action against governments if they feel domestic policy changes have negatively impacted their business interests. The mechanism is designed to protect companies from what they see as unfair treatment under local laws. The treaty, expected to be finalized alongside a broader free trade agreement, signals a willingness by both countries to provide greater legal certainty for foreign investors.This is a notable development given that, since leaving the European Union, the UK has avoided including ISDS in any of its bilateral free trade agreements, although it remains a feature of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which the UK has joined. India, for its part, has also moved to restrict the use of ISDS in its treaties, especially after terminating a previous bilateral investment treaty with the UK in 2017. India’s newer model only allows ISDS claims after all domestic legal options have been exhausted.Why Now? Business Confidence and Political ShiftsAccording to one source, the UK pushed for the inclusion of ISDS in the new deal, reflecting British businesses’ desire for stronger assurances that they will be treated fairly under the Indian legal system. The Indian government has not commented publicly on the ongoing talks. A spokesperson for Britain’s trade ministry declined to discuss the specifics but stressed that any agreement must guarantee fair treatment for businesses.The Labour Party, which returned to power in the UK last year, has been eager to present itself as pro-business and to restart trade talks that had stalled under previous administrations. “We are committed to enhancing access for UK businesses, guaranteeing their fair treatment, reducing tariffs, and simplifying trade,” a UK trade ministry spokesperson said.Track Record and ControversyBritain has never lost an ISDS case, but UN data shows that of the 30 ISDS claims brought against India since 2003, eight were initiated by UK-based companies under a previous agreement. The ISDS mechanism has not been without controversy. Critics, including the UK’s former Conservative government, have warned that ISDS can hinder efforts to address climate change, as fossil fuel companies have used it to protect their assets from new environmental policies.What’s Next? Final Talks and Remaining HurdlesNegotiations between the UK and India have been ongoing, on and off, since January 2022. The Indian Commerce Minister Piyush Goyal was in London earlier this week for advanced discussions and returned on Friday for further talks. Key sticking points remain, including tariffs on whisky, automobiles, and agricultural products, as well as regulatory issues in the pharmaceutical sector.India’s previous opposition to ISDS led to the scrapping of the earlier bilateral investment treaty with the UK in 2017. The new agreement appears to be a compromise, balancing investor protections with domestic legal safeguards.For businesses and investors, the inclusion of ISDS is a clear signal that both governments are seeking to create a more predictable and secure environment for cross-border investment. As one UK official put it, the aim is to “improve access for UK businesses, ensure their fair treatment, cut tariffs, and make trade cheaper and easier”.---Join SEINET – the Europe-India Tech & Science Corridor.Connect seamlessly with industry leaders, startups, and organizations driving innovation across borders. Sales, Partners and M&A on www.startupeuropeindia.net

India’s technology sector, long a global powerhouse for IT services and software development, is undergoing a seismic shift as artificial intelligence (AI) reshapes the industry. With a workforce of over 5 million tech professionals and a burgeoning startup ecosystem, the country is rapidly adapting to the AI era, balancing challenges with immense opportunities.A Workforce in TransitionThe rise of AI is transforming job roles across India’s tech landscape. Traditional tasks like coding and data analysis are increasingly augmented by AI tools, pushing professionals to upskill in areas like machine learning, natural language processing, and AI ethics. Companies such as Tata Consultancy Services (TCS) and Infosys are investing heavily in reskilling programs, training thousands of employees to work alongside AI systems. For instance, TCS’s AI-focused training initiatives aim to prepare its workforce for “human-AI collaboration,” ensuring employees remain relevant in an automated world.This shift isn’t limited to large corporations. India’s startup ecosystem, with over 1,200 AI-driven startups, is fostering a culture of innovation. Entrepreneurs and developers are leveraging AI to solve local challenges, from improving agricultural yields to enhancing healthcare diagnostics. This entrepreneurial spirit is supported by government initiatives like the National AI Strategy, which promotes AI adoption and skill development.Education and Skill DevelopmentIndia’s education system is also adapting to meet AI-driven demands. Universities and online platforms are introducing specialized AI and data science courses, with institutions like the Indian Institute of Technology (IIT) and Indian Institute of Science (IISc) leading the charge. Meanwhile, edtech platforms like UpGrad and Coursera report a surge in enrollments for AI-related certifications, reflecting a growing appetite among young professionals to master these skills.However, challenges remain. The pace of AI adoption outstrips the supply of highly skilled talent, creating a gap between industry needs and available expertise. Rural areas, in particular, face barriers to accessing quality education and internet connectivity, limiting participation in the AI economy. Addressing these disparities is critical to ensuring inclusive growth.Economic and Global ImpactIndia’s AI adaptation is poised to bolster its $250 billion IT industry. By integrating AI, companies are improving efficiency, reducing costs, and delivering innovative solutions to global clients. For example, Indian firms are developing AI-powered tools for industries like finance, retail, and manufacturing, positioning the country as a leader in AI outsourcing.Globally, India’s tech talent is gaining recognition for its ability to deliver scalable AI solutions. Multinational corporations, including Google and Microsoft, are expanding their AI research hubs in India, drawn by the country’s vast talent pool and cost advantages. This trend underscores India’s growing influence in shaping the global AI landscape.Despite the optimism, the AI era brings challenges. Job displacement fears loom large, particularly for roles involving repetitive tasks. Industry leaders emphasize the need for proactive reskilling to mitigate these risks. Additionally, ethical concerns around AI, such as data privacy and algorithmic bias, are prompting discussions on responsible AI development. Indian policymakers and companies are beginning to prioritize frameworks for ethical AI, aligning with global standards.India’s tech talent is at a pivotal moment, embracing AI as both a challenge and an opportunity. With robust investments in education, government support, and a dynamic startup ecosystem, the country is well-positioned to thrive in the AI era. As one industry expert noted, “India’s ability to adapt and innovate will determine its place in the global AI race.” By fostering collaboration between industry, academia, and government, India is not just keeping pace with the AI revolution—it’s helping shape its future.---Join the Premier Europe-India Network for Technology and Science Leaders and Organizations Across Europe, the UK, and IndiaRegister free www.startupeuropeindia.net

Google’s artificial intelligence lab, is on a mission to push the boundaries of AI, aiming for systems that rival and even surpass human intelligence. Here’s a straightforward look at the key points from Demis Hassabis and the DeepMind team’s vision for the future, especially in tackling disease and transforming everyday life.AI Progress Is AcceleratingDeepMind’s CEO, Demis Hassabis, describes AI’s progress as “exponential.” With more resources and talent than ever before, breakthroughs are happening rapidly. The lab is moving toward Artificial General Intelligence (AGI)—AI that can learn and reason across any domain, much like a human.AI That Sees, Hears, and UnderstandsDeepMind’s Project Astra is a new kind of AI assistant that doesn’t just process text, but can also see, hear, and interpret the world around it. Imagine a chatbot that can look at a piece of art, sense emotions, or create stories from images. This leap in understanding brings AI closer to real-world usefulness.Transforming Disease Research and HealthcareOne of DeepMind’s boldest goals is to help cure or even eliminate all diseases within the next decade. Here’s how they’re working toward that:AlphaFold, DeepMind’s breakthrough model, has mapped over 200 million protein structures—work that would have taken humans centuries. Knowing how proteins fold is crucial for understanding diseases and designing targeted drugs.The new AlphaFold 3 can predict how drugs interact with proteins, potentially speeding up drug discovery from years to just months or weeks.Tools like AlphaMissense can predict which genetic mutations are likely to cause disease, helping doctors diagnose rare conditions faster.DeepMind’s AI can detect life-threatening illnesses, such as acute kidney injury, up to 48 hours earlier than traditional methods, allowing for quicker intervention and better patient outcomes.The team is also building AI systems that analyze medical scans and personal health data, aiming to make healthcare more personalized and accessible everywhere.Learning, Imagination, and the UnknownDeepMind’s AI systems learn from massive datasets, sometimes developing abilities their creators didn’t expect. While these systems can solve problems and even generate creative solutions, they still lack true curiosity and imagination—the ability to ask new questions or come up with original hypotheses. Hassabis believes that within a decade, AI will be able to propose and solve new scientific problems on its own.Robotics and Everyday ImpactDeepMind is making strides in robotics, teaching machines to reason and follow complex instructions. In the near future, robots could perform genuinely useful tasks in homes and workplaces, driven by the same AI breakthroughs powering their software.Risks, Safety, and EthicsWith great power comes great responsibility. Hassabis is clear-eyed about the risks:AI could be misused by bad actors.As AI systems become more autonomous, controlling them could become harder.DeepMind stresses the need for international cooperation, strong safety measures, and ethical guardrails to ensure AI benefits everyone. They’re also exploring how to teach AI systems values and morality, much like how children learn from adults.A Future of Radical AbundanceLooking ahead, Hassabis envisions a world where AI leads to “radical abundance”—ending scarcity and transforming society. He believes new philosophers will be needed to help humanity navigate these changes, as AI reshapes not just science and health, but the very fabric of daily life.DeepMind is at the forefront of a technological revolution. Their work could dramatically speed up scientific discovery, cure diseases, and change how we live and work. But realizing this potential will require careful oversight, ethical thinking, and a commitment to making sure these advances help everyone.---Join the Premier Europe-India Network for Tech and Science LeadersConnect with industry and product leaders from Europe and India through the Startup Europe India Network (SEINET). This invite-only platform is designed for decision-makers in science, technology, and innovation to drive partnerships, expand markets, and foster mergers and acquisitions.Register now www.startupeuropeindia.net