Generative AI has a significant impact on Gross Value Added in the financial services sector and could contribute an additional $66 to $80 billion by 2030, according to a survey conducted by EY. The BFSI sector has recognized the potential of Generative AI and is implementing it for various use cases. However, companies need better preparation to navigate this digital transformation.
Finnish telecom gear group Nokia is set to cut up to 14,000 jobs in a cost reduction effort following a 20% decline in third-quarter sales. The decreased sales are attributed to reduced demand for 5G equipment in countries like the US. Nokia and rival Ericsson have been striving to offset this decline with higher sales to India, a low-margin market. Nokia’s cost-cutting program aims to save 800 million to 1.2 billion euros by 2026.
The India-Middle East-Europe Economic Corridor (IMEC) trade corridor is a response to China’s Belt and Road Initiative (BRI). It aims to connect India, the Arabian Gulf, and Europe through sea and land routes, reducing trade time, and increasing clean energy production. The project has polarised global debates and can provide significant geopolitical benefits for India. Private sector participation will be crucial for its success, particularly in building core sector projects like dedicated rail lines.
Platform companies have the potential to compound revenues at over 25% in the long term. However, there is a misunderstanding about the profitability of these companies in the listed market space. Anand states that the current expenses are short-term and primarily linked to the current hyper growth phase. As these companies evolve and change consumer behavior, they can reduce costs and introduce monetization strategies.
