India to release consultation paper on AI law in coming weeks

Drafting the AI framework

The Indian government is preparing to launch a formal consultation process to create legislation for artificial intelligence. Union Minister Ashwini Vaishnaw stated that the government is currently drafting a consultation paper to be released in the coming weeks. This document will serve as a foundation for gathering feedback from various stakeholders.

The initiative is designed to collect a wide range of perspectives from society, individual citizens, and various industries. Because AI has been adopted so aggressively by the private sector, the government wants to ensure that the rules reflect the actual experiences of users. The goal is to create a balanced approach that acknowledges the rapid growth of the technology.

Vaishnaw noted that the current environment has reached a point where specific regulations are necessary to manage the risks associated with the technology. He emphasized that while the harms of new technology can be regulated, the government is already actively working on the necessary framework. The consultation process is the first step in establishing these formal rules.

Collaborating with global giants

A key component of the government's strategy involves cooperation with the world's largest technology companies. Vaishnaw suggested that the global giants who lead the top three or four AI ecosystems must work together on fundamental principles. This suggests a desire for international alignment on how AI should behave and be governed.

By involving these major players, the government hopes to establish standards that are both effective and scalable. The minister highlighted that the risks posed by AI have crossed a specific threshold, making it time to move beyond voluntary guidelines. The upcoming consultation paper will likely address how these global principles can be integrated into local policy.

The government's approach aims to balance the needs of the industry with the safety of the public. By seeking input from the people who actually use the tools, the ministry hopes to identify specific harms that need to be addressed. This collaborative spirit is intended to ensure that the new laws do not stifle innovation while still protecting the public.

A target for local hardware

Beyond software and AI laws, the government is also setting ambitious goals for India's hardware manufacturing capabilities. Minister Vaishnaw announced that Indian mobile phone brands, which are designed and manufactured locally, are expected to be ready by October 2028. This timeline includes the production of the first chip designed and made in India by that same date.

To support this goal, the government has introduced an incentive scheme to boost domestic mobile phone production. This plan is intended to promote the development of brands that are entirely Indian in design and manufacturing. The minister pointed out that electronics have already become India's third-largest export item, with the goal of reaching second place soon.

The government is positioning these hardware goals as a way to build a complete domestic ecosystem. By moving from assembly to design and manufacturing, India seeks to compete with the world's largest electronics producers. This strategy is part of a broader effort to ensure that the country is not just a consumer of global technology but a primary creator of it.

The path to design capital

The government's long-term vision includes making India the global design capital for semiconductors. This plan relies on the fact that 20 per cent of the world's design engineers are currently located in India. To support this, the government is leveraging a talent pipeline created through more than 300 universities.

Under the India Semicon Mission 1.0, 12 plans have been approved, and several plants are expected to become operational very soon. The minister noted that the sixth plant in this series will be inaugurated shortly. These facilities are intended to provide the infrastructure needed to support the growing semiconductor industry.

For the next phase, Semicon 2, the focus will shift even more toward design. The government aims to utilize the existing pool of engineers to lead the world in semiconductor architecture. By combining manufacturing incentives with a focus on high-level design, India hopes to establish a dominant position in the global electronics supply chain.