Unit 4 of 4
4.4 — MeitY and Emerging Indian AI Governance
India's approach to AI regulation is evolving rapidly. Unlike the EU's comprehensive legislation approach, India currently favors sector-specific regulation combined with voluntary frameworks.
Indian AI Governance Milestones
Aug 2023
DPDP Act 2023
India's first comprehensive data protection law receives Presidential assent.
Mar 2024
MeitY AI Advisory
Requires government approval for 'unreliable' AI models (later narrowed to government-funded platforms).
2024
IndiaAI Mission
₹10,371 crore allocated for AI infrastructure — compute, datasets, and skilling.
2024
SEBI AI Guidance
Guidelines on AI/ML use in capital markets for investment advice and algorithmic trading.
Ongoing
Sector Regulators
RBI, SEBI, IRDAI, and other sectoral regulators developing AI-specific guidelines.
Indian Sector-Specific AI Regulation
| Regulator | Sector | Key AI Focus |
|---|---|---|
| RBI | Banking & Finance | Model risk management, explainability, data localization |
| SEBI | Capital Markets | Algorithmic trading, AI-driven investment advice |
| IRDAI | Insurance | AI in underwriting, claims processing |
| MeitY | Cross-sector | General AI governance, platform approvals |
| NITI Aayog | Policy | Responsible AI principles (non-binding) |
★EXAM TIP
India's regulatory approach is sector-specific (RBI for banking, SEBI for capital markets) rather than comprehensive like the EU AI Act. Expect questions comparing these two regulatory approaches.
Key Points
MeitY advisory on AI model approvals (March 2024)
India favors sector-specific AI regulation
IndiaAI Mission: ₹10,371 crore for AI infrastructure
SEBI guidance on AI in capital markets
Evolving landscape — expect new regulations