India to issue consultation paper on new AI law in coming weeks

A shift toward formal regulation

Union Minister Ashwini Vaishnaw announced that the Indian government will release a consultation paper on a new Artificial Intelligence (AI) law in the coming weeks. This move signals a clear change in the country's stance on how to manage the technology. Vaishnaw stated that the risks associated with AI have crossed a threshold that now requires formal legislation.

Previously, the government suggested that existing laws and voluntary norms were sufficient to manage the technology. In December 2025, the IT ministry's secretary even stated that no dedicated AI law was being planned at that time. This new announcement marks the first formal step toward a specific statute rather than just amendments to current rules.

The government's goal is to create a framework that addresses the harms of the technology while ensuring humans remain in control. Vaishnaw noted that the state is already working on these regulations to ensure they are ready for public review. The consultation paper will serve as the starting point for gathering feedback from various parts of society.

Balancing growth and safety

The minister highlighted two different global approaches to AI regulation during his remarks at the NDTV World Summit. One approach involves waiting for the technology to evolve fully before applying rules, while the other, which he associated with Europe, involves regulating every innovation early. He argued that the latter style can stifle growth and innovation.

India intends to maintain a bias toward innovation while simultaneously ensuring the safety of its citizens. The proposed law is expected to be framed as a harm-based regulation rather than a licensing regime. This means the government wants to target specific dangers rather than creating a system that requires permission for every new AI project.

Vaishnaw emphasized that the race toward technological advancement must be moderated by the safety of human beings. He suggested that the core principles of the new law should be that AI must be human-centric. The goal is to ensure that the processes, models, and outcomes of AI remain under human oversight.

Global alignment and standards

Because AI is a borderless technology, Vaishnaw argued that no single country can create effective rules in isolation. He noted that physical boundaries do not exist in the digital world, which means any new initiative must be globally aligned. He suggested that the rules should reflect international cooperation rather than just local interests.

To illustrate this, he pointed to the nuclear industry as a successful template for international agreement. In that sector, countries worked together to agree on principles that now govern the industry worldwide. He believes India should follow a similar path for AI by sitting at the table with other global giants.

India currently positions itself as one of the top three or four AI ecosystems in the world. By aligning with global standards, the country hopes to foster a stable environment for development. This international cooperation is intended to prevent a fragmented regulatory landscape that could hinder the adoption of new tools.

Focusing on the end users

A significant part of the upcoming consultation will involve discussing the technology with the people who actually use it. While the government has already had extensive discussions with tech companies, it now wants to hear from stakeholders in various industries. This includes banks, manufacturers, insurers, and various service firms that are adopting AI rapidly.

The shift in focus from developers to users is a notable change in the government's strategy. In sectors like banking and insurance, AI errors can have a direct and immediate impact on the lives of ordinary citizens. By involving these users, the government hopes to better understand what the technology can deliver and what harms it might cause.

The consultation paper will seek input from civil society, citizens, and industry representatives to shape the final law. This broad approach is intended to capture a wide range of perspectives on how AI affects daily life. The final rules will likely address how to stop AI systems if they begin to go out of control.