XKDR Newsletter - Issue 34
US restrictions on AI chips • Trump's 2nd presidency • Evolution & future of regulators • Seminar on innovative finance & legal system reform • Hybrid warfare • Unpacking invisible infrastructure
OP-ED & COMMENTARY
In his column for the Business Standard, Ajay Shah writes on
Stop-start in currency flexibility harms economic growth. Government controlled prices, including exchange rate, interfere with economic growth. While such a policy measure temporarily supports firms, it is not possible for the government to control these prices in the long term. This results in large price changes which are more disruptive for firms than the flow of daily fluctuations of a free-market.
US export restrictions on AI chips: Implications for India. The new US restrictions on AI chip exports, aimed at limiting China’s access, have minimal impact on India’s services exports, which remain a key driver of economic growth. For domestic AI applications, Indian firms face minimal restrictions: (a) they can freely rent cloud server capacity abroad, (b) they can import up to 1700 Nvidia H100 chips annually without regulation, and (c) AI inference can be performed using unrestricted, cheaper chips like the Nvidia H20 or consumer GPUs. Global firms have many choices on where they can place their equipment. The Indian government must negotiate with these firms to bring in such equipment and associated high-end knowledge flows into India.
VIDEOS AND PODCASTS
New episodes of our YouTube show Big Ideas -
In Episode 36, Daniel M. Rothschild explores the reasons for Donald Trump’s victory, its implications on the US government and policy, and the India-US relationship.
In Episode 37, Judge Kent A. Jordan traces the evolution of judicial oversight of administrative agencies in the United States.
In Episode 38, Edward L. Rubin argues on the need for a modern form of government where oversight of administrative agencies is outcome-oriented than process-oriented.
On their YouTube show, Everything is Everything, Ajay Shah and Amit Varma discuss -
Going bankrupt in India, Ep 80;
Life lessons from chess in 2024, Ep 81;
Invisible Infrastructure, Ep 82;
Atheism, Ep 83;
The Age of Hybrid Warfare, Ep 84.
UPCOMING EVENTS
On 10th Feb 2025, we are hosting a seminar on Innovative Finance which will explore the role of trade credit, securitisation of agricultural trade receivables, and alternative data for industrial finance.
On 14th Feb 2025, we are hosting the 12th seminar on Indian Legal System Reform focusing on achieving time-bound justice, and legal pluralism in India.
XKDR Forum is an interdisciplinary research and policy organisation harnessing knowledge and capabilities across diverse fields of economics, law, public administration, engineering, statistics and science. We welcome your comments and suggestions on our work.