In light of relations between Brussels and Washington, could India carve out its unique path in the realm of artificial intelligence?
India, an emerging tech superpower, finds itself at a crossroads in the realm of Artificial Intelligence (AI) regulation. While the country aims to harness AI's potential to contribute up to 20% of its GDP by 2025, it is also striving to build a responsible, innovation-driven AI ecosystem.
Unlike the EU's comprehensive legal framework for AI, India's strategy leans towards a principles-based, evolving approach. This approach is tailored to India's socio-economic context, emphasising regulatory flexibility to avoid stifling innovation in the booming AI sector.
The Digital Personal Data Protection (DPDP) Act, 2023 (not yet enforced) provides a foundation for data governance in India. However, AI involves more than personal data, requiring the addressing of challenges such as non-personal data, inferred data, synthetic datasets, and real-time consent frameworks.
To address these challenges, India is considering introducing regulatory sandboxes for AI. These sandboxes would allow startups and developers to test their AI systems in a controlled environment with light-touch oversight.
As the EU AI Act takes effect and global AI policies intensify, the next 24 months will be pivotal for AI regulation in India. The country must move quickly yet thoughtfully to avoid being left behind in the AI race.
India's strategy uniquely integrates substantial public investment (over $1.24 billion under the IndiaAI mission) to democratize AI infrastructure and promote indigenous AI, alongside principles-based governance framed by the Ministry of Electronics and Information Technology (MeitY) that stresses safety, fairness, human oversight, and technology-led governance.
India aims to harmonize its domestic standards with international norms while preserving the flexibility to address uniquely Indian challenges. This includes prioritising inclusive innovation by supporting startups and democratising access to AI resources nationally, reflecting India’s development priorities.
The path ahead for AI regulation in India should focus on four key principles: regulating what's risky, not what's new; building agile, sector-specific rules; empowering institutions to understand and govern AI meaningfully; and aligning globally but adapting locally.
AI models built around fairness, explainability, and data privacy are being considered for incentives such as tax breaks, public procurement preferences, or fast-track certification in India. However, the country must walk the tightrope between innovation and protection, avoiding over-regulation that could handicap startups and stifle experimentation, and a hands-off approach that risks unleashing AI systems with real-world harms.
Meanwhile, the US, under President Donald Trump's newly unveiled AI Action Plan, aims to unleash innovation, cut red tape, and fund only those who don't slow down AI with "burdensome" regulation. Without clear guardrails, India risks becoming a playground for experimental AI models that can't pass muster in more tightly regulated regions.
The EU AI Act, set to transform how AI is developed, deployed, and governed, offers a robust, rights-based framework rooted in principles like transparency, human oversight, and risk-based classification. High-risk AI applications like biometric surveillance or predictive policing face stringent compliance obligations in the EU AI Act.
India needs to invest in institutional capacity, including AI officers within existing regulators and possibly a future AI Governance Authority with the power to investigate, audit, and enforce compliance. This will ensure that India's AI ecosystem is not only innovative but also responsible, transparent, fair, and inclusive.
In summary, India's AI regulatory approach is a principles-based, evolving framework leveraging existing laws tailored by socio-economic needs, balanced with active government investment and international alignment. This balancing act aims to foster a globally competitive yet ethically conscious AI ecosystem within the complexities of India’s unique digital landscape.
Artificial Intelligence (AI) requires the addressing of challenges beyond personal data, such as non-personal data, inferred data, synthetic datasets, and real-time consent frameworks.
To facilitate experimentation with AI systems while maintaining control, India is considering introducing regulatory sandboxes, allowing startups and developers to test their systems in a controlled environment with light-touch oversight.
