Global AI Governance Law and Policy: India
This article analyzes the laws, policies, and broader contextual history and developments relevant to AI governance in India, highlighting the significant transformation in the digital landscape.
Introduction
From a single computer in Kolkata’s Indian Statistical Institute in the 1950s to powering the world’s digital infrastructure, India’s technical journey has been tremendously transformative. In the 1990s, the government focused on the information technology sector by encouraging the export of software services, which resulted in India eventually emerging as a global IT hub.
Today, India boasts the world’s largest digital identity system, the biggest digital payments system by volume, and a population that is predominantly digital by default. This dramatic digital transformation has naturally fueled the adoption of AI.
AI Adoption and Investment
According to the Stanford Artificial Intelligence Index Report 2025, India ranks second in the list of countries with the highest AI skill penetration from 2015 to 2024 and is among the top 10 countries globally that received the most private investment in AI from 2013 to 2024.
India’s AI policy has two different facets: promoting AI adoption amid rapid advances in generative AI and governing the risks posed by AI technologies. The government has pledged to invest USD 1.25 billion in AI development, launching the IndiaAI Mission to promote integration across various sectors.
Regulatory Framework
Historically, India’s digital space was regulated by the Information Technology Act, 2000, which has undergone numerous amendments to respond to new digital threats. While the Act was intended to regulate computers and electronic records, it is now applied to a range of digital products and services, including AI systems.
Various subordinate legislations under the IT Act have governed the processing of personal data, but these were replaced by the Digital Personal Data Protection Act, 2023. Other laws, such as the Bharatiya Nyaya (Second) Sanhita, 2023, and the Indian Copyright Act, 1957, also extend to the digital space and apply to AI.
Strategic Approaches
In 2018, India’s National Institution for Transforming India released the National Strategy on Artificial Intelligence (NSAI), which aimed to make AI accessible and affordable while addressing challenges of skilled expertise. The NSAI set out four key areas:
- Research to boost core and applied research in the AI field.
- Reskilling the current workforce to facilitate large-scale employment generation through AI.
- Investments in AI and product development to enhance AI adoption.
- Managing concerns around ethics, privacy, and security.
Sector-Specific AI Regulations
Various sectoral regulators are looking to regulate AI within their specific domains:
Financial Sector
The Reserve Bank of India has developed the Framework for Responsible and Ethical Enablement of Artificial Intelligence to study AI adoption by financial institutions.
Healthcare Sector
The Indian Council of Medical Research released the Ethical Guidelines for Application of AI in Biomedical Research and Healthcare, focusing on safety standards and data privacy.
Telecommunication Sector
The Telecommunication Engineering Centre has recognized the influence of AI on upcoming technologies and published a report on AI system fairness.
Defense Sector
The Artificial Intelligence in Defence report sets out a risk-based assessment framework to integrate AI applications into defense operations.
Recent Developments
The Digital India Act has not yet been released for public consultation, and it is unlikely that any AI law will materialize this year. An Inter-Ministerial AI Coordination Committee is likely to be established to develop a common roadmap to regulate AI.
Various initiatives are underway to address sector-specific considerations and challenges posed by AI, including RBI’s FREE-AI committee report and policy frameworks released by the healthcare and defense sectors.
Conclusion
India’s AI governance landscape is continuously evolving. While there are existing frameworks, the integration of AI into various sectors requires a comprehensive regulatory approach that fosters innovation while addressing potential risks. The establishment of a unified governance framework will be crucial as AI technologies continue to advance and permeate various aspects of society.
