Regulating the Algorithm: India's Approach to AI Governance Amidst Global Debates

The Main Story

As Artificial Intelligence integrates into the economy and society, governments worldwide are grappling with how to regulate a technology that is powerful, opaque, and evolving at an unprecedented pace. India, with its billion-plus population and ambition to be a leading digital nation, finds itself at a critical juncture, navigating a complex path between fostering innovation and mitigating significant risks.

### What is the core challenge in regulating AI?

The central challenge stems from a deep structural imbalance in the global AI ecosystem. The development and control of advanced AI models are concentrated in a handful of highly capitalised firms, primarily in the Global North, as noted in the UN’s Preliminary Report of the Independent International Scientific Panel on AI (July 2026). This creates a stark divide where countries like India face a choice between making massive capital investments to compete or becoming rule-takers dependent on foreign technology. The resources required—abundant electricity, scarce talent, and immense capital—are significant barriers to entry, according to the same report.

This dynamic was illustrated when the U.S. government restricted access to advanced models like Anthropic’s Mythos and Fable, forcing Indian firms to confront the geopolitical risks of relying on foreign-developed AI (Source: The Hindu, July 2026). The pace of AI development far outstrips that of previous technological shifts, leaving little time for regulators to adapt. The harms are already tangible, ranging from the proliferation of deepfakes that undermine public trust to AI-driven systems creating parasocial relationships with potentially fatal consequences.

### What is India's official stance on AI regulation?

India's official position has undergone a significant evolution. Initially, the government adopted an innovation-centric approach, with NITI Aayog's 2018 'National Strategy for Artificial Intelligence' framing AI as an engine for economic growth under the motto '#AIforAll'. As late as early 2023, MeitY's public stance was that existing laws were sufficient. However, this position shifted decisively later that year. Citing the rapid emergence of generative AI and the potential for user harm, MeitY Minister Ashwini Vaishnaw stated in October 2023 that a new legal framework was necessary.