As artificial intelligence (AI) becomes a key pillar of India’s digital economy, the government is preparing a comprehensive regulatory framework to govern its use. The Ministry of Electronics and Information Technology (MeitY) is leading the effort, focusing on ensuring that AI development aligns with national interests, ethical standards, and public safety.

No Blanket Ban—India Chooses a “Risk-Based” Approach

Unlike some Western nations considering strict AI laws, India plans a “risk-based regulatory model”, assessing AI systems based on their potential societal impact. This model will classify AI tools into different risk categories—low, medium, and high—depending on factors like transparency, accountability, and possible harm to users. The aim is to encourage innovation while curbing misuse of powerful algorithms.

Government Working on a Dedicated AI Legislation

MeitY is reportedly drafting a “Digital India Artificial Intelligence Bill”, expected to be introduced in 2026. The bill will focus on ethical AI deployment, data privacy, algorithmic transparency, and liability frameworks for AI-driven decisions. It will also establish an AI regulatory body to oversee compliance, monitor risks, and ensure responsible use across sectors including finance, healthcare, and law enforcement.

Collaboration with Global and Domestic Stakeholders

India is working closely with global partners and domestic tech companies to shape its AI policy. The country participated in the Global Partnership on Artificial Intelligence (GPAI) summit, reaffirming its commitment to safe and trustworthy AI. Additionally, the government is engaging with startups, academia, and industry leaders to balance regulation with growth opportunities.

Focus on Ethical AI, Deepfake Regulation, and Privacy Protection

One of the top priorities of India’s upcoming AI policy is to tackle AI-generated misinformation and deepfakes, which have become major online threats. The framework will also reinforce data privacy standards under the Digital Personal Data Protection Act, 2023, ensuring that AI systems adhere to privacy-by-design principles.

Empowering Innovation Through “AI for All” Mission

India’s AI regulation is part of a broader “AI for All” initiative aimed at promoting responsible innovation, developing indigenous AI models, and supporting startups through incentives and public-private partnerships. The approach underscores the government’s intent to make AI both accessible and accountable.

Conclusion: Regulation Without Stifling Growth

India’s AI regulation strategy emphasizes “trust, transparency, and technology advancement”. By avoiding overregulation and encouraging ethical practices, the government aims to position India as a global hub for responsible AI innovation—where growth and governance go hand in hand.