Artificial Intelligence in India

Regulatory guidance / voluntary codes in India

India’s approach to regulating AI and addressing emerging technology-related risks relies on existing laws applied purposively, alongside sectoral guidance, voluntary codes, and strategic frameworks.

Key central guidance includes:

  • NITI Aayog (2021): The National Institution for Transforming India (NITI Aayog), the government’s public policy think tank, released the Responsible AI #AIFORALL in 2021. Part 1 of the Responsible AI document ‘Principles for Responsible AI’, released in February 2021, outlined the risks and recommended seven key principles for responsible AI: safety and reliability, equality, inclusivity and non-discrimination, privacy and security, transparency, accountability and protection and reinforcement of positive human values. Part 2, Operationalizing Principles for Responsible AI, released in August 2021, recommended strategy for public and private sector to operationalise the principles. Part 2 also proposed the creation of a Council for Ethics and Technology (CET) to oversee responsible AI deployment, though the CET has not been formally constituted as of date.
  • India AI Governance Guidelines: Building on the NITI Aayog framework, MeitY established the IndiaAI Mission as the flagship national initiative to develop a comprehensive AI ecosystem. The Mission aims to democratise computing access, enhance data quality through curated AI-ready datasets, develop indigenous capabilities, attract talent, enable industry collaboration and promote ethical AI, amongst others. Under this Mission, MeitY released the India AI Governance Guidelines, establishing a ‘pro-innovation techno-legal framework’. The Guidelines are split into four parts. The first part focuses on seven fundamental principles (sutras):
    • Trust is the Foundation;
    • People First;
    • Innovation over Restraint;
    • Fairness and Equity;
    • Accountability;
    • Understandable by Design; and
    • Safety, Resilience and Sustainability.

These sutras have been adapted from the RBI’s FREE-AI Committee report (discussed below), and are intended to be cross-sectoral, technology-neutral and foundational for responsible AI development and deployment.

Part 2 of the guidelines examines issues and provides recommendations through six pillars of infrastructure, capacity building, policy and regulation, risk mitigation, accountability and institutions, whereas Part 3 and Part 4 are focused on action plan and suggestions for responsible AI use.

Key sector-specific guidance includes:                                                                                                    

  • Reserve Bank of India (RBI): The Reserve Bank of India, India’s apex bank, constituted the Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) Committee. It was tasked with providing recommendations for responsible and ethical adoption of AI in the financial sector. Mooting the seven principles or sutras, the FREE-AI Committee Report also discusses six strategic pillars of infrastructure, policy, capacity, governance, protection and assurance, addressing dimensions of innovation enablement as well risk mitigation. It also outlines 26 recommendations for AI adoption in the financial sector. This report is a forward-looking blueprint and is not law.
  • Securities and Exchange Board of India (SEBI): SEBI, which regulates the securities and commodity markets in India, has issued a series of measures for AI usage, such as: Reporting for Artificial Intelligence (AI) and Machine Learning (ML) applications and systems offered and used by Market Infrastructure Institutions (MIIs) (2019); Master Circular for Investment Advisers (2025) which inter alia requires investment advisors to disclose AI use to clients and take sole responsibility for AI-derived advice; Consultation Paper with proposed guidelines for responsible usage of AI/ML in Indian Securities Markets (2025); and Advisory on Emerging Advanced Artificial Intelligence (AI) Tools for Vulnerability Detection (like Mythos) (2026).
  • Insurance Regulatory and Development Authority of India (IRDAI): IRDAI, India’s insurance regulator, issued the Insurance Fraud Monitoring Framework Guidelines (October 2025), aiming to deter, prevent, detect, report and remedy fraud risks effectively across the insurance industry. It inter alia requires insurers to establish dedicated fraud-monitoring governance structures and strengthen technology-enabled fraud detection and monitoring mechanisms across the insurance value chain. Most recently, the IRDAI constituted a seven-member Working Group on AI Governance (June 2026), tasked with assessing AI adoption across the sector and recommending a formal governance framework for ethical, transparent and explainable use of AI in insurance, including for claims and fraud detection.
  • Ministry of Health and Family Welfare: The Strategy for AI in Healthcare for India, launched by the Ministry of Health and Family Welfare in February 2026, is a guidance framework for responsible integration of AI in the healthcare ecosystem. The Indian Council of Medical Research (ICMR) had also released Ethical Guidelines for Application of Artificial Intelligence in Biomedical Research and Healthcare in 2023, which provides an ethics framework for development, deployment and adoption of AI-based solutions in biomedical research and healthcare, addressing key principles such as patient safety, data privacy, algorithmic transparency, accountability and human oversight of AI systems.
  • Bureau of Indian Standards (BIS): BIS, India’s national standards body, has also adopted certain ISO/IEC AI standards as Indian Standards, including IS/ISO/IEC 23894:2023 on AI risk management. These standards are voluntary technical benchmarks for AI governance, risk management and management systems, and may shape future regulatory expectations and sectoral guidance in India.

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