Approach to Regulating AI in India

Syllabus: GS2/Governance

Context

• India is witnessing rapid adoption of Artificial Intelligence (AI) across sectors like healthcare, education, agriculture, and governance. AI is expected to contribute up to $15.7 trillion to the global economy by 2030.
  • However, the absence of a formal national strategy or legal framework raises serious concerns regarding ethical deployment, accountability, and inclusive growth.

Global Trends in AI Governance

• In the past year, countries have shifted their focus on AI governance, from mainly protecting human rights and safety to also promoting innovation and boosting the economy.
  • Legislative Frameworks: Countries like the European Union (EU), China, Canada, South Korea, Peru, and the United States have introduced formal laws to regulate AI.
  • Draft Legislations: Nations such as the United Kingdom, Japan, Brazil, Costa Rica, Colombia, and Pakistan have proposed AI bills awaiting approval.
  • Strategic Documents: Over 85 countries and the African Union have released national AI strategy documents outlining policy goals, ethical principles, budget allocations, and sectoral priorities.

Need For Regulating AI

• Preventing Misinformation: Public opinion can be manipulated by deepfakes and disinformation created by Artificial Intelligence.
• Protecting Privacy: Mass surveillance technologies without regulation will undermine civil liberties.
• Preventing Algorithmic Bias: Artificial Intelligence can also reproduce discriminatory attitudes towards marginalized groups.
• Preventing Job & Labour Displacement: Job automation is threatening jobs in traditional industries.
• Preventing Concentration of Power: A handful of companies with AI pose monopolistic risk and social imbalance.
• Protecting from Existential Risk: Advanced Artificial Intelligence might become superior to human control if left uncontrolled.
• Ethical Concerns: Unethical and improper use of AI systems could impede the achievement of the Sustainable Development Goals (SDGs) – 2030, weakening ongoing efforts across social, environmental, and economic dimensions.

India’s Current Approach

• Lack of Formal Strategy: India currently does not have an officially approved national AI strategy or dedicated legislation. The only strategic document available is a 2018 discussion paper released by NITI Aayog which was not officially adopted.
  • The IT Act (2000) and Digital Personal Data Protection Act, 2023 offer indirect governance of AI systems, primarily through data protection.
• IndiaAI Mission: In the absence of a formal law, the government has launched the IndiaAI Mission through the Ministry of Electronics and Information Technology (MeitY). The mission is built upon seven pillars aimed at fostering a responsible and innovation-driven AI ecosystem.
• Expert Advisory Group: An advisory group has been established to develop recommendations for AI governance. However, the timeline and certainty of formal adoption remain unclear.

Key Initiatives and Strategies

• National Strategy for Artificial Intelligence (NSAI): It was released by NITI Aayog in 2018 to guide the responsible development of AI across key sectors like healthcare, agriculture, education, smart mobility, and smart cities.
  • However, it is non-binding and not followed up with enforceable regulations.
• AI Task Force (2018): It is set-up by the Ministry of Commerce and Industry to suggest frameworks to leverage AI in India’s economic transformation.
  • However, recommendations acknowledged but not formally codified.
• Responsible AI for Social Empowerment (RAISE 2020): It was organized by MeitY and NITI Aayog, that focused on AI governance, Ethics and inclusivity, Public-private partnerships etc.
• Parliamentary Standing Committee on IT (2021 & 2023 Reports): These reports recommended a dedicated AI regulatory framework, and establishment of an AI regulatory authority.

Way Forward

• Draft a National AI Policy: A policy document should outline India’s vision for AI, identify priority sectors (e.g., health, education, agriculture), lay down ethical principles, and specify institutional responsibilities.
• Encourage Public Consultation and Awareness: Structured dialogues with academia, industry, and civil society are essential to enhance transparency and ensure accountability in AI deployment.
• Pilot Regulatory Mechanisms: India should implement pilot-level regulatory tools—such as algorithmic audits or risk classification systems—before enacting a full-fledged AI law.
• Invest in Institutional Capacity: This includes support for AI research labs, open datasets, skill development initiatives, independent ethics committees, and sectoral oversight bodies.

Conclusion

• India’s approach to AI regulation prioritizes development and adoption over strict legal frameworks. While this allows flexibility, it also leaves gaps in transparency, accountability, and ethical AI deployment. 
• As AI adoption accelerates, India must consider a structured governance model to ensure responsible and inclusive AI growth.

Source: TH