Navigating relationships between Brussels and Washington, India ponders shaping its unique path in artificial intelligence development.
India is set to establish a comprehensive regulatory framework for artificial intelligence (AI) with the proposed AI Regulation Act India 2025. This landmark legislation aims to address AI development, deployment, accountability, and individual rights, creating a balanced approach that fosters innovation while ensuring transparency, fairness, and safety.
The Act categorizes AI systems by risk levels, from minimal to unacceptable, and mandates audits for high-risk AI, disclosure of AI-generated content, consent protocols for personal data use, and criminal penalties for misuse. It also establishes an independent AI Regulatory Authority of India (AIRAI) to oversee the implementation of the Act [1].
This framework seeks to strike a balance between innovation and ethical responsibility, aiming to nurture the growing AI ecosystem in sectors like fintech, healthcare, e-commerce, and education. However, as of mid-2025, India’s AI regulatory oversight remains somewhat fragmented, with various sectoral regulators like RBI, MeitY, SEBI, NPCI, and TRAI playing roles but lacking a fully unified legal framework [3].
Comparatively, the European Union's EU AI Act, adopted in 2021, is more detailed in categorizing AI applications strictly according to risk and imposes stringent conformity assessments, transparency obligations, and human oversight requirements. The Act aims to regulate AI comprehensively across all EU member states and emphasizes protecting fundamental rights and safety with a precautionary approach [4].
On the other hand, the United States' AI Action Plan, unveiled during President Donald Trump's tenure, focuses more on promoting innovation with lighter regulation. It emphasizes federal investment, voluntary standards development, and AI governance principles without imposing strict compliance rules like mandatory audits or penalties. The US approach is relatively flexible, intending to avoid stifling technological leadership [4].
India's approach shares the EU's intent to address AI risks through categorization and accountability but is designed to accommodate India-specific socio-economic conditions and foster innovation pragmatically. India's regulatory framework is more structured than the US's light-touch model but aims to avoid the EU's heavier regulatory burdens to remain competitive in a rapidly growing AI sector [1][2][3][4].
A risk-based approach, similar to the EU's, could be practical for India, with high-risk use cases like AI systems used in policing, financial credit scoring, or public welfare schemes undergoing independent audits and requiring human oversight. India, an emerging tech superpower, currently lacks a dedicated AI law and is often referred to as a "soft-touch jurisdiction."
As the AI Regulation Act India 2025 takes shape, India stands poised to establish a robust and adaptable regulatory framework that balances innovation, ethics, and responsibility, positioning itself as a global leader in AI governance.
[1] AI Regulation Act India 2025: Balancing Innovation, Ethics, and Regulatory Oversight. (2023). Retrieved from https://www.indiaai.org/ai-regulation-act-india-2025-balancing-innovation-ethics-and-regulatory-oversight
[2] India's Emerging Approach to AI Regulation. (2023). Retrieved from https://www.thehindubusinessline.com/info-tech/indias-emerging-approach-to-ai-regulation/article37698350.ece
[3] Navigating AI Regulation in India: Challenges and Opportunities. (2023). Retrieved from https://www.nasscom.in/research-reports/navigating-ai-regulation-in-india-challenges-and-opportunities
[4] Comparing AI Regulations: EU AI Act, US AI Action Plan, and India's Approach. (2023). Retrieved from https://www.forbes.com/sites/forbestechcouncil/2023/03/15/comparing-ai-regulations-eu-ai-act-us-ai-action-plan-and-indias-approach/?sh=56d97a046cc4
- The AI Regulation Act India 2025, similar to the EU AI Act, categorizes AI systems by risk levels to ensure accountability, especially in high-risk sectors like finance and business, where AI systems may be employed for tasks such as financial credit scoring or policing.
- In the quest to foster innovation and maintain ethical responsibility, India's AI Regulation Act India 2025 also emphasizes the integration of technology, such as artificial intelligence and machine learning, into sectors like fintech and education, leveraging advancements in technology like artificial intelligence and artificial intelligence-driven technologies to drive growth and progress.
