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CSEET · Economic and Business Environment · AI and Business Environment

India's approach to AI governance, as reflected in the India AI Governance Guidelines released in 2025, is best described as:

India's AI governance approach is principle-based and innovation-friendly, relying mainly on existing laws instead of a single new comprehensive AI law. It does not ban generative AI, mandate government ownership of models or limit AI use to public sector undertakings.

  1. AA principle-based, innovation-friendly approach that relies largely on existing laws rather than one new omnibus AI statuteCorrect
  2. BA complete prohibition on commercial use of generative AI
  3. CA requirement that every AI model be owned by the government
  4. DA rule that AI may be used only by public sector undertakings

Explanation

The guidelines favour light-touch, principle-based governance, using existing laws such as IT and data protection rules and addressing gaps as needed. They do not ban generative AI or require state ownership of models.

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