India's Emerging AI Regulatory Landscape: A Pro-Innovation Approach

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Note: This article represents a practitioner’s interpretation of the relevant rules and regulations in place at the time of writing. I am not a lawyer, and readers should consult with their own legal counsel and compliance teams before taking any action based on this information.

India currently has no specific laws or regulations that directly regulate artificial intelligence. But the country has developed several frameworks and guidelines that outline its vision for AI development and deployment.

Current State of AI Governance

The absence of direct AI regulation reflects India’s cautious approach to governing emerging technologies. Instead of specific AI laws, India has developed several non-binding frameworks and guidelines:

  1. National Strategy for Artificial Intelligence: Developed by NITI Aayog, this strategy document outlines India’s vision for AI development but does not impose binding obligations.

  2. Principles for Responsible AI: These principles provide guidance for AI development but are not legally binding requirements.

  3. Digital Personal Data Protection Act (2023): While this legislation addresses data protection broadly, it is not specifically focused on AI regulation.

Sector-Specific Developments

Some sectors have begun incorporating AI considerations into their existing regulatory frameworks:

  • The Securities and Exchange Board of India issued a circular in January 2019 on reporting requirements for AI and machine learning applications.
  • The National Digital Health Mission has identified the need for guidance on AI systems in healthcare, though specific regulations have not yet been implemented.

Recent and Future Developments

The draft Digital India Act 2023 remains in development and has not been enacted. But India’s regulatory posture has been shifting noticeably since mid-2025, with several new developments moving the country closer to enforceable AI governance:

  • April 2025: The Department for Promotion of Industry and Internal Trade (DPIIT) established an expert committee to study AI’s use of copyrighted works and recommend regulatory approaches. This is an area where India could end up charting its own course.
  • November 2025: The Ministry of Electronics and Information Technology (MeitY) released the India AI Governance Guidelines under the IndiaAI Mission. These guidelines are not enforceable law, but they represent the most comprehensive official articulation of India’s expectations for responsible AI development and serve as a foundational reference for future regulation.
  • December 2025: A Private Member’s Bill was introduced in the Lok Sabha proposing the creation of a statutory Ethics Committee for AI, mandatory ethical reviews for surveillance and high-risk AI systems, bias audits, developer obligations, restrictions on certain AI uses in law enforcement and employment, grievance mechanisms, and penalties up to 5 crore rupees. While Private Member’s Bills rarely pass, this one signals the direction of legislative thinking.
  • February 2026: Amended IT Rules 2026 were notified (effective February 20, 2026), introducing mandatory labeling of AI-generated content, a reduced takedown window of 3 hours (2 hours for AI-generated obscene content involving misused identities), and new deepfake-specific regulations.

India still has no specific codified laws that directly regulate AI, but the trajectory is clearly moving toward more formal governance. The combination of the IT Rules amendments, the governance guidelines, and the Private Member’s Bill suggests that India’s purely hands-off era may be coming to a close.

Current Implications for Organizations

While India still lacks comprehensive AI-specific legislation, the regulatory picture is becoming more concrete. Organizations operating in India should:

  1. Comply with the amended IT Rules 2026, particularly around mandatory labeling of AI-generated content and the accelerated takedown requirements
  2. Follow existing sector-specific regulations that may impact AI deployment
  3. Use the MeitY AI Governance Guidelines as a best-practices reference, anticipating that future legislation may formalize similar requirements
  4. Monitor developments in the Digital India Act and any legislative follow-up to the December 2025 Private Member’s Bill
  5. Ensure compliance with the Digital Personal Data Protection Act when deploying AI systems that handle personal data

References

  1. NITI Aayog. (2021). “National Strategy for Artificial Intelligence (#AIForAll).” https://www.niti.gov.in/national-strategy-artificial-intelligence

  2. Ministry of Electronics and Information Technology. (2023). “Digital Personal Data Protection Act.” https://www.meity.gov.in/dpdp-act

  3. Securities and Exchange Board of India. (2019). “Circular on AI and ML Applications.” https://www.sebi.gov.in/legal/circulars/jan-2019/reporting-for-artificial-intelligence-ai-and-machine-learning-ml-applications-and-systems-offered-and-used-by-market-intermediaries_41546.html

  4. Ministry of Electronics and Information Technology. (2025). “India AI Governance Guidelines.” https://www.meity.gov.in/

  5. White & Case. (2025). “AI Watch: Global regulatory tracker - India.” https://www.whitecase.com/insight-our-thinking/ai-watch-global-regulatory-tracker-india

Changelog

  • February 2026: Added DPIIT copyright expert committee (April 2025), MeitY AI Governance Guidelines (November 2025), Private Member’s Bill proposing AI Ethics Committee (December 2025), and amended IT Rules 2026 with AI content labeling and deepfake regulations (February 2026). Updated implications for organizations. Added new references.

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