16 January, Posted at 3:56 PM IST
This article presents a legal and policy analysis of India’s evolving approach to artificial intelligence regulation, examining its implications for innovation, accountability, and democratic governance.
Introduction: India at an AI Policy Crossroads
Artificial Intelligence (AI) is rapidly reshaping everyday life in India. From welfare delivery and job recruitment to credit scoring, content moderation, and digital governance, AI systems increasingly influence how citizens interact with both the state and the market.
Despite this growing impact, India still does not have a dedicated law governing artificial intelligence. Instead, AI regulation is emerging through a combination of data protection legislation, executive advisories, and sector-specific rules. This places India at a critical policy crossroads—balancing innovation-driven growth with rising concerns around accountability, bias, misinformation, and misuse.
As global scrutiny of AI intensifies, India’s cautious and flexible approach is drawing both praise and criticism.
Why India Does Not Have a Dedicated AI Law
Unlike the European Union, which adopted a comprehensive risk-based AI law in 2024, or the United States, which relies largely on market-led oversight and post-harm enforcement, India has chosen a gradual and adaptive regulatory path.
At present, the primary legal framework affecting AI systems is the Digital Personal Data Protection Act, 2023, which governs how personal data is collected, processed, and stored—including data used by AI models.
In addition, the Ministry of Electronics and Information Technology (MeitY) has issued multiple advisories directing AI platforms to:
Label AI-generated content
Prevent misuse such as deepfakes and impersonation
Ensure accountability for harmful or misleading outputs
However, these advisories are executive instructions rather than binding legislation. They do not create a standalone AI regulator, clearly defined risk categories, or enforceable compliance standards.
From both a legal and business perspective, this creates uncertainty—citizens lack clear remedies, while companies and startups face ambiguity about future regulatory obligations.
National AI Strategy vs Present Reality
India’s current regulatory stance marks a noticeable departure from the vision outlined in the National Strategy for Artificial Intelligence (2018) released by NITI Aayog. Branded as “AI for All,” the strategy promised:
Ethical and transparent AI
Bias mitigation and accountability mechanisms
Sectoral deployment in health, education, agriculture, and mobility
Institutional oversight frameworks
Since then, India has made significant investments in AI infrastructure, public datasets, and compute capacity through initiatives such as the IndiaAI Mission. However, governance frameworks have not evolved at the same pace.
Ethical safeguards remain largely voluntary, public consultation is limited, and no independent authority exists to oversee AI-specific harms. Critics warn that this imbalance risks deploying powerful AI systems faster than the law’s ability to respond.
How India’s AI Regulation Compares Globally
Globally, governments are reassessing how artificial intelligence should be governed.
The European Union has prioritised fundamental rights through preventive, risk-based regulation—even at the cost of slower innovation. The United States, by contrast, relies on competition law, courts, and sector regulators, intervening primarily after harm occurs.
India sits between these models:
No outright bans like the EU
More state involvement than the US
Heavy reliance on executive discretion and soft law
This hybrid approach offers flexibility and encourages innovation, particularly for startups. At the same time, it raises a critical question: can soft regulation meaningfully protect citizens when AI systems operate at population scale?
Global Signals India Cannot Ignore
Recent international developments highlight why AI governance is becoming increasingly urgent.
Australia’s restrictions on smartphone use among schoolchildren reflect growing concern over algorithmic addiction, mental health, and platform accountability. In the United Kingdom, regulators have scrutinised controversial outputs from generative AI systems accused of spreading misinformation and harmful content.
While not always framed explicitly as AI laws, these actions signal a broader global shift. Technology is no longer presumed neutral, and public harm is increasingly driving policy intervention.
For India—home to one of the world’s largest and youngest digital populations—these global signals carry serious implications.
What This Means for Startups and Citizens
India’s AI startup ecosystem has benefited from regulatory openness, lower compliance costs, and government-backed digital infrastructure. However, founders increasingly warn that regulatory uncertainty and sudden policy shifts can be as damaging as over-regulation.
For citizens, key gaps remain:
Limited transparency in AI-driven decisions
Weak accountability for automated harm
Few accessible legal remedies
As AI systems begin influencing elections, policing, education, and financial access, experts argue that advisory-based governance may no longer be sufficient.
Conclusion: Regulating Power in the Age of AI
The debate is no longer about whether artificial intelligence should be regulated, but how power and accountability should be balanced in an AI-driven society.
India faces the challenge of crafting clear, predictable legal guardrails without stifling innovation. This will require moving beyond temporary advisories toward rights-based, statutory frameworks—while preserving space for technological growth.
If India succeeds in striking this balance, it could emerge not only as a global AI hub, but also as a democratic model for governing intelligent technologies in the public interest.
Mohammed Nooruddin is a finance and technology expert with a background in journalism. He previously worked as a reporter with 4TV Hyderabad and now contributes to Raftaar e Deccan, covering FinTech, cyber crime, and artificial intelligence.
