India Is Developing AI Governance Regulations: FM Sitharaman Nirmala

Nitin Konde, Varun Bhardwaj

25 Feb 2025 — 4 min read

India Working on AI Governance Regulations: FM Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman said at the 6th Convocation Ceremony of the Indian Institute of Information Technology (IIIT) Kottayam on 22 February that India is not only embracing AI but is also actively draughting regulations to guarantee its efficient governance. According to her, India is not only at the forefront of the use of artificial intelligence (AI), but it is also influencing its governance through stakeholder participation. The Minister underlined the government's efforts to boost science, technology, and innovation as well as next-generation industries like drones and space.

Commenting on this development, Rashmi Kulkarni, Co-Founder and Director- IndoAI Technologies Pvt. Ltd. stated, "Developing AI governance regulation in India is taking a step forward for responsible AI development. Defining a regulatory framework is essential for ensuring AI systems are transparent, secure and unbiased. We know now AI is going deeper into important sectors like authentication using face recognition, security and automation, well defined frameworks will be a plus to give clarity on the data privacy and compliance requirements. Finance Minister has taken the opportunity to set global standards by crafting AI regulations that will definitely encourage collaboration between policy makers and industry experts. To build trust in AI, a future proof framework of AI regulations will be the key and which will drive responsible AI development by the experts."

Echoing similar sentiments, Amit Chandel, Co-Founder and Chief Technology Officer, Olyv, told, "India is taking significant steps towards creating regulations for artificial intelligence (AI) governance, as envisioned by Finance Minister Nirmala Sitharaman. She emphasised the nation's determination to not only embrace AI technologies but also their responsible application in different sectors. This move is essential for promoting innovation while protecting ethical standards. The Minister pointed out that India is at the forefront of AI adoption, with an emphasis on developing a framework that ensures transparency and accountability. She said, while highlighting the need for a structured approach to AI governance that India is formulating policies that will ensure AI is used responsibly and ethically, following the country's national values. For tech leaders, this regulatory framework is crucial in helping to address risks involved in deploying AI, including bias and privacy."

Prime Minter Modi at AI Action Summit in Paris

The Finance Minister mentioned Prime Minister Narendra Modi's remarks at the recent AI Action Summit in Paris, which India and France co-chaired, when he discussed AI as a global issue rather than merely a domestic one. She emphasised how crucial it is that AI be moral, inclusive, and reliable. The Minister emphasised a number of important programs meant to encourage creativity and independence in India. She underlined the 'India AI Mission,' which was initiated with a budget of INR 10,300 crore to finance AI start-ups, create computing infrastructure, develop domestic AI skills, and attract AI talent. Furthermore, in 2023, three Centres of Excellence in Artificial Intelligence were announced, with a focus on Sustainable Cities, Healthcare, and Agriculture. This year's budget also included a new Centre of Excellence for Education.

Commenting on this development, Dipal Dutta, CEO - RedoQ said, "India’s decision to establish comprehensive AI governance regulations will mark a significant step in the country’s technological advancement. The country is already trying to take a leap in the AI sector with initiatives like the India AI Mission, which aims to boost the infrastructure development and set a foundation for responsible and ethical AI practices. With such initiatives, the country is ensuring that its AI ecosystem grows in a structured and sustainable manner. Prime Minisiter Modi’s recent participation in the Paris AI Summit highlights India’s commitment in engaging in global discussions on AI governance. The proactive stance will ensure that the country’s tech sector remains competitive as Western countries actively frame policies to regulate AI. Theregulatory clarity will encourage investment and allow Indian companies to scale AI-driven solutions with more confidence."

India's Space and Technology Progression

The Minister discussed India's space technology developments, pointing out that IN-SPACe has inked more than 70 Memorandums of Understanding (MoUs) with non-governmental entities (NGEs) to facilitate space operations. In addition, she emphasised the National Green Hydrogen Mission, which was established in January 2023 with a five-year budget of INR 20,000 crore with the goal of making India a global centre for the production, use, and export of green hydrogen and its byproducts.

Using programs like the India Semiconductor Mission (2021), the National Quantum Mission (2023), and the creation of a 'Anusandhan' corpus of Rs1 lakh crore for long-term funding of research in emerging fields, the Minister reaffirmed the government's commitment to promoting research and innovation.

She also emphasised the establishment of five National Centres of Excellence for Skilling to give young people industrial skills and the proposal for 10,000 PM Research Fellowships for technological research at IITs and IISc. India's position in the Global Innovation Index has risen dramatically, she noted, going from 81st in 2015 to 39th in 2024. Additionally, the nation's patent-to-GDP ratio has grown significantly, rising from 144 in 2013 to 381 in 2023.

Furthermore, according to the World Intellectual Property Organization (WIPO) in 2023, India now ranks sixth globally in intellectual property registrations and seventh in terms of intangible asset intensity. India's advancement towards greater innovation and independence is reflected in its increased Network Readiness Index ranking, which rose from 79th in 2019 to 49th in 2024.

The Minister underlined that the government has gathered a lot of feedback from interested parties and is constantly developing regulations to guarantee AI gets the attention it needs. She underlined India's proactive involvement in creating international AI regulations and confirmed the country's leadership in AI adoption and governance.