AI regulations should be nimble to boost innovation: Principal Scientific Advisor Ajay Sood

NEW DELHI: The regulatory framework for artificial intelligence (AI) should be agile and that must not over-constrain innovation but should come with a cautious approach, a top advisor to the Indian Prime Minister Narendra Modi said.

"The AI regulations should be nimble and not over-constraining, but at the same time, there should be a cautious approach. Recently, the IT Act 2021 has been modified and updated through a notification from the Ministry of Electronics & IT (MeitY), to take care of all the risks which can come from AI," India's Principal Scientific Advisor Ajay Sood told ET.

Currently, India lacks standalone legislation focused on AI.


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However, in February 2026, the Centre unveiled norms to regulate artificial intelligence and deepfakes through amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, that comes under the Information Technology Act, 2000, and apply only to intermediaries.

The amendments discourages "synthetically generated information” such as audio-visual information that is artificially or algorithmically created, generated, modified or altered using a computer resource in a manner that appears to be a real-world event.

"Now, regulation must strike a balance; if you make very rigid laws to address this, innovation will suffer," he added.

"What India is doing, and which everyone appreciates is that we are looking at a mechanism that evolves continuously, depending on the situation, and is based on risks. We shouldn't make very rigid laws in the beginning," Sood said.

Country's AI governance guidelines prioritise innovation over restraint, positioning AI as a catalyst for inclusive growth, competitiveness, and the vision of Viksit Bharat (Developed India) 2047.

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The Ministry of Electronics and Information Technology (MeitY) acts as the nodal ministry for AI governance and policy coordination. It also issues impromptu advisories regulating AI use, mandating that intermediaries and platforms using AI systems must not permit any bias or discrimination or threaten the integrity of the electoral process.

"There are existing laws, and those will be strengthened because one has to also remember that it is a very dynamic technology," he said.

"You have to enable innovation, but at the same time, you have to make sure it is there for public safety, ethics, and fundamental human rights of privacy," the top advisor added.

The government's action plan includes conducting a regulatory gap analysis and adopting appropriate legal amendments and rules including voluntary frameworks to promote responsible innovation and mitigate risks.

The European Union (EU) adopted first-ever legal framework on AI, which addresses the risks for developers and deployers for the development of trustworthy AI, which includes the AI Continent Action Plan, the AI Innovation Package and AI Factories.