India Launches Comprehensive AI Governance Guidelines for Startups

India’s IT Ministry has introduced a transformative seven-point framework for artificial intelligence (AI) governance as part of the IndiaAI Mission. This initiative aims to support the development of AI models that are tailored to Indian languages and are built from the ground up. The new guidelines establish essential requirements for both corporates and startups engaged in AI development, emphasizing the need for the use of trusted data sources and transparency in the operations of AI models.

The framework prioritizes ‘people first’ projects, reflecting the government’s commitment to utilizing AI technologies for enhancing public services. Since the launch of this mission, the Indian government has approved funding for 12 startups, including a notable allocation of $112 million to BharatGen, which is backed by the Indian Institute of Technology (IIT) Bombay.

While the guidelines are non-binding and do not carry legal weight, they serve as a roadmap for future regulatory approaches to AI in India. A senior government official stated, “This is a set of expert committee observations and recommendations that suggest that if we want to pursue regulating AI in future, this is the approach that we can take.” This framework reinforces the notion that the government prefers not to enact new laws unless absolutely necessary.

Key Principles and Objectives

The guidelines aim to create a balance between innovation and accountability, with a focus on driving inclusive growth while maintaining public trust. The seven core principles outlined in the framework include Trust, People First, Innovation over Restraint, Fairness & Equity, Accountability, Understandable by Design, and Safety, Resilience, and Sustainability.

Dhruv Garg, cofounder and partner at the India Governance and Policy Project (Igap), commented on the framework’s maturity, stating, “It’s a light but deliberate framework, prioritizing coordination and standards over control.” He emphasized the importance of aligning the guidelines with fundamental principles of AI, including privacy and rights-based approaches. Garg also highlighted that further coordination among various ministries and stakeholders will be critical before India can consider standalone AI legislation or integrate AI provisions into future updates of the Information Technology Act.

Infrastructure Development Initiatives

The newly released document also sheds light on significant strides the Indian government has made in building a robust AI infrastructure. The country has made over 38,231 Graphics Processing Units (GPUs) available to startups and researchers at subsidized rates. Additionally, a secure GPU cluster, featuring 3,000 next-generation GPUs, is currently under construction for strategic applications.

The AIKosh platform has onboarded 1,500 datasets and 217 AI models from 34 different entities across 20 sectors, offering permission-based access to contributors while retaining control over data usage. To further support emerging companies, four startups are in the first phase of development for India’s sovereign AI models, receiving funding covering up to 25% of their compute costs through a mix of grants and equity.

The governance framework also introduces a well-defined structure to enhance oversight and regulation. Principal Scientific Adviser Ajay Kumar Sood emphasized the guiding principle of “Do No Harm,” aiming to foster an environment where AI innovation can thrive while ensuring societal safety. S. Krishnan, Secretary of the Ministry of Electronics and Information Technology (MeitY), added that these guidelines signify a crucial step towards responsible AI development anchored in India’s Digital Public Infrastructure.

This comprehensive framework reflects India’s ambition to position itself as a leader in safe AI adoption, creating a model that could inspire other nations in their governance approaches.