IndiaAI regulation

Regulation Status

• India does not have a comprehensive, binding AI-specific law or standalone AI regulatory authority as of now. Existing regulation remains fragmented, relying on sectoral laws and regulators, including data protection, financial services, media, telecom, competition, health, and digital intermediary rules.
• The government has moved from draft policy work to a principle-based AI governance framework: the India AI Governance Guidelines have been adopted, built around the “Seven Sutras” and supported by proposed or emerging institutions including the AI Governance Group, Technology and Policy Expert Committee, AI Safety Institute, and the AI Governance and Economic Group.
• Binding AI-related obligations now exist in targeted areas. The 2026 amendments to the IT Intermediary Guidelines Rules regulate synthetically generated public-facing information through labelling, metadata, due diligence, and takedown obligations; SEBI has imposed AI accountability and disclosure obligations for investment advisers; and other sector-specific proposals, including in health, remain under consideration.
• Multiple private member bills and proposals exist, including on AI ethics and accountability, deepfakes, and health AI, but none has become a comprehensive national AI statute. The government has signalled interest in targeted legislative amendments and possible AI legislation, while generally favouring an agile, multi-stakeholder and pro-innovation approach rather than a separate AI regulator.
• Courts are increasingly shaping AI governance in adjudicatory settings. In Vijay Ghanshyam Gadiya v. Union of India, the Supreme Court set aside a customs penalty order that relied on non-existent, AI-hallucinated case law, reaffirming that AI may assist decision-making but cannot substitute adjudication and that unverified AI-generated precedents can invalidate decisions.