India does not yet have a dedicated, standalone law governing artificial intelligence. Instead, AI businesses operate under a combination of existing laws covering data protection, cybersecurity, intellectual property, consumer protection, and digital services. The country's approach has so far been principles-based and innovation-friendly, relying on sector-specific regulations and broader digital governance frameworks rather than a single AI statute.
The most important law affecting AI companies is the Digital Personal Data Protection (DPDP) Act, 2023, which regulates the collection, processing, storage, and transfer of digital personal data. AI developers and businesses that use personal information for training models, personalization, analytics, or automated services must comply with consent requirements, data security obligations, breach reporting rules, and user rights regarding their personal data. The DPDP framework has become the foundation of AI-related compliance in India.
AI businesses must also consider the Information Technology Act, 2000, which governs cybercrime, electronic records, intermediary liability, and online services. In addition, intellectual property laws such as the Copyright Act influence how AI-generated content, training data, and software are treated legally. However, important questions remain unresolved, including liability for AI-generated harm, algorithmic transparency, and accountability for autonomous decision-making systems.
While India continues to promote AI innovation through government initiatives and policy discussions, experts note that significant regulatory gaps remain. There is currently no comprehensive framework defining responsibilities for AI developers, deployers, and users, nor are there detailed requirements for algorithmic audits, safety testing, or explainability. As AI adoption accelerates across industries, India is expected to gradually expand its governance framework, balancing innovation with privacy, accountability, and public trust.
