DOES INDIA NEED A COMPREHENSIVE AI REGULATION ACT? 

INTRODUCTION 

If you have been following the conversations about technology policies in India over the few  years you have probably seen a pattern. Every month a scandal about deepfakes or a  controversy about chatbots becomes big news online people get upset a minister says  something and then nothing really changes. The government of India does not make a law about  Artificial Intelligence. Instead, the government makes a change to a rule here gives some advice  there and then moves on. This has left a lot of people, including lawyers, technologists and  ordinary users of Artificial Intelligence asking the question: should India not just make one big  law for Artificial Intelligence like the European Union did with its Artificial Intelligence Act? 

This is a question and it is not a question that people are asking just for fun. Artificial  Intelligence systems are already being used to decide who gets a loan from a bank to screen  people who are applying for jobs before a human being even sees their resume to power  chatbots that give advice and to make videos that are so realistic they can fool most people who  watch them. The stakes of getting this wrong are very real. The answer to the question of  whether India needs a law for Artificial Intelligence is not a simple yes or no. To really answer  this question, we need to look at three things: what laws India has why the government of India  has not made a single law just for Artificial Intelligence so far and what gaps still exist that  need to be addressed in any conversation about responsible policies, for Artificial Intelligence. 

Where India Actually Stands Right Now 

There is a misconception about Artificial Intelligence in India that it is not regulated by law.  This is not true. Artificial Intelligence in India is already regulated. Not by one specific law.  Instead, the country uses a set of existing laws that were written for purposes and applies them  to Artificial Intelligence. 

The main law that regulates Artificial Intelligence in India is the Information Technology Act  of 2000 along with the IT Rules of 2021. These laws form the basis of how online platforms  work in the country. In 2026 the government made some changes to these rules specifically  targeting Artificial Intelligence-generated content and deepfakes. Now online platforms have  to label content that was created or altered by Artificial Intelligence. They have to remove  unlawful content quickly. If they do not, they can lose their protection from liability.

On top of this there is the Digital Personal Data Protection Act of 2023 which restricts how  companies use people's data to train Artificial Intelligence systems. This law is important  because Artificial Intelligence systems rely on amounts of data to work properly. 

Different industries in India, such as finance and healthcare also have their rules for using  Artificial Intelligence. For example, the Securities and Exchange Board of India has rules for  how financial companies can use Artificial Intelligence in trading and advisory services. The  Reserve Bank of India has its framework for how banks can use Artificial Intelligence in areas  like credit scoring and customer service. 

The government has also released guidelines for Artificial Intelligence governance, which  include principles like trust, fairness and accountability. These guidelines are not legally  binding. They provide a framework for how Artificial Intelligence should be used in the  country. 

The problem is that all these laws and guidelines do not add up to an Artificial Intelligence law.  What India has is a patchwork of laws and rules that are applied to Artificial Intelligence. This  raises the question of whether this patchwork's enough or if the country needs a single  comprehensive Artificial Intelligence law. When people ask if India needs an Artificial  Intelligence law, they are really asking if this patchwork is sufficient or if it will fall apart under  pressure. Artificial Intelligence, in India is regulated. The regulation is complex and made up  of many different parts. Artificial Intelligence is an issue and it is essential to consider how it  is regulated in the country. 

THE CASE FOR A DEDICATED LAW 

There's a strong case here and it goes much further than just copying what Brussels has done.  The problems with responsibility are real not something people talk about. Now in Indian law  there isn't one clear way to say what is considered a "high-risk" AI system. There isn't one  group in charge of reporting AI problems across the country. A hiring system that ignores  people because of patterns that are unfair. Now someone who is harmed by this has to rely on  general rules about protecting consumers. The ways to complain that are in the IT Rules. These  ways were made for things like reviews or harmful posts not for decisions made by algorithms.  A special law could fix this by making it clear who is responsible what kind of care they need  to provide. Where someone who is harmed can go for help.

Different areas of regulation create confusion. Now the RBI is in charge of AI in banking and  finance. SEBI is in charge of AI in stock markets. MeitY deals with platforms and content. A  company in healthcare that makes a tool to diagnose illness or an education tech company using  AI to help kids learn doesn't fit neatly into any of these groups. This leaves areas where no one  with power is watching closely. 

Big companies and investors want rules. Companies that work in the EU, the US and India  already have to make plans for each place. When India keeps changing the rules for platforms  through new changes instead of making one clear law it makes it harder for people who want  to invest for the long term. A single clear law. Even if it’s not too strict. Could make Indias  rules easier to work with. That might make the country more attractive for term AI investment. 

False videos and false information spread faster than the current system can handle. Even  people who support the way of handling AI agree there's a real problem. It’s called a speed gap.  The way AI problems change is much faster than the way of making rules and passing laws. A  smart complete law, one made with the power to change rules easily from the start could adjust  faster, than just adding new changes to a 2021 rule that wasn't made with AI that creates things  in mind. 

THE CASE AGAINST RUSHING INTO ONE 

Yet the governments hesitation to bring in a separate AI law isn't just about being slow or not  wanting to act. There is a clear reason for this way of thinking and it should be considered  carefully instead of being seen as just not moving fast enough. 

AI is not one thing and thinking of it that way can be dangerous. An algorithm used in a hospital  for diagnosis a model used by a bank to spot fraud and a chatbot that makes posts for social  media all create very different types of risks. They work in different areas and need very  different ways of being watched and controlled. Trying to put all of them under one law could  lead to something that is too unclear to be useful or too strict to let the industry grow. This is  basically the thinking that MeitY has used when choosing to regulate in areas instead of having  one general law. Let the RBI control AI in finance since they already know a lot about finance  and let health experts control AI in healthcare since they know their field instead of expecting  one general AI law to handle everything at once. 

Indias main focus is very different from Europe’s. The EU AI Act was mainly about classifying  risks and making sure things are compliant with lots of paperwork and checks for anything 

seen as risk. India on the hand has said that "innovation over restraint" is one of its main goals.  The fear here is simple Indias own AI startups do not have the money or resources as the big  American and Chinese AI companies they are trying to compete with. Adding many rules and  requirements before they have a chance to grow could hurt the AI industry in India more than  it helps customers. 

Laws take a time to make but technology moves fast. By the time a full AI law could be written,  discussed, debated, passed and officially announced the technology it was meant to control  might already be completely different. People who don't think laws should be rushed point out  that a strict law can become outdated before it even starts to work. While rules that are set  sector by sector and changed when needed can keep up with what's happening. 

Many laws already cover more than people think. As already mentioned, the IT Act, the DPDP  Act and Indias criminal code. The Bharatiya Nyaya Sanhita, which replaced the Indian Penal  Code. Already apply to many AI-related problems, like fraud, false statements pretending to be  someone else and sharing pictures without permission. The idea here is: fix the problems with  how the laws we already here’re used before creating a new law that may never be used, like  some of the old consumer protection rules already are. 

SO, DOES INDIA ACTUALLY NEED ONE? 

The truth probably lies in between the people who think India really needs a standalone AI Act  and the people who think everything is fine without one. 

India does not need an AI Act like the one in Brussels right now. The country has its priorities  and its startup ecosystem is not as strong as the big AI companies around the world. AI is used  in different areas so it makes sense to have rules that are specific to each area. 

This does not mean that the current system is good enough. There are some problems with it  and they need to be fixed. Instead, the government could make a few changes, such as: 

• A new framework for AI liability so people know who is responsible when something  goes wrong with an AI system. 

• A system for reporting AI failures so the government can track and study them. 

• Clear rules for classifying AI risks so companies know what they need to do to comply  with the law.

• Giving bodies, like the AI Safety Institute the power to enforce the rules and the money  they need to do their job. 

The question should not be whether India should pass an AI Act or do nothing. The question  should be whether the current system can be improved without waiting for a new law. This law  might take years to pass. Could be outdated by the time it is finished. 

CONCLUSION 

What is clear is that no matter which side of this argument you agree with the discussion is not  going to end. As artificial intelligence tools become more part of how regular Indians use  banking services get medical advice apply for jobs and read news and information the demand  on law makers to create something stronger than a set of guidelines that are not required to  follow is only going to increase. 

Indias current way of dealing with this. Handling each area separately using rules and being  careful not to create strict laws too quickly. Is a real and reasonable choice: that changing old  laws fast is better than creating new laws slow at least for now. Whether this choice continues  to work depends a lot on how it is carried out. Whether organizations like the AI Safety Institute  get real power to enforce rules whether reporting problems becomes required instead of  optional and whether people who are hurt by artificial intelligence systems actually get quicker  and better ways to get help than they do now. If those things happen India might not need an  AI law at all. If they don't the demand for one is only going to get louder. The government may  find that just updating an old IT law and adding more advice, on top of it is no longer enough  to keep up with a technology that shows no sign of slowing down. 

REFERENCES 

1. Ministry of Electronics and Information Technology (MeitY) Information Technology  (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2026,  Gazette Notification G.S.R. 120(E), notified 10 February 2026. 

2. India-Briefing.com, "Global Firms Face Legal Risks Under India's 2026 AI  Regulation," March 2026. 

3. Lex ology / DGA-Albright, "India's 2026 IT Rules Amendment: Regulating AI Generated Content and Accelerating Compliance," February 2026.

4. Drishti IAS, "India's Blueprint for AI Regulation," July 2026. 

5. AIRiskAware.com, "India AI Policy: DPDP, SEBI, RBI and What Applies (2026)," last  reviewed July 2026. 

6. Regulations.ai, "India AI Regulation Overview," updated January 2026. 

7. MeitY, India AI Governance Guidelines, released under the IndiaAI Mission,  November 2025. 

8. Digital Personal Data Protection Act, 2023, and Digital Personal Data Protection Rules,  2025.

AUTHOR(s): Isha Kumari, BBA.LL.B graduate from ITM University, intern at The Legal Lock