India to take techno-legal path on AI, prioritise innovation over regulation: Ashwini Vaishnaw

Union Electronics and IT Minister Ashwini Vaishnaw on Monday said India will adopt a “techno-legal” model to ensure the safe use of artificial intelligence (AI), while deliberately prioritising innovation over tight regulation. He was speaking at the launch of two NITI Aayog reports - ‘Roadmap for AI for Viksit Bharat: An Opportunity for Accelerated Economic Growth’ and ‘NITI Frontier Tech Repository’ - released in New Delhi at the Road to India AI Impact Summit 2026, attended by Finance Minister Nirmala Sitharaman and senior NITI officials.

'Techno-legal' approach to AI safety

Electronics and IT Minister Ashwini Vaishnaw said India's framework for AI differs sharply from that of Europe and other regions, which rely heavily on laws and regulators. "On AI safety, we have taken a very different approach. Many parts of the world treat it as a legal challenge, believing a law will ensure safety. Our AI Safety Institute is a virtual network of institutions, each working on a specific challenge," he said.

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As an example, Vaishnaw cited IIT Jodhpur, where researchers are developing deepfake detection systems that he said can already achieve high accuracy. The minister stressed that India would tilt towards innovation whenever there is a conflict with regulation. "Technology should be allowed to evolve first. Regulatory structures can follow," he added.

Focus on critical technologies

Vaishnaw said that no nation can aspire to be developed without mastering frontier technologies such as telecom, semiconductors, electric vehicles, biotech, advanced engines, quantum computing and rare earths.

He stressed that AI has now joined this "constellation" of critical areas. "Just like the Internet transformed everything, AI is now changing the way we work, live, consume, educate and deliver healthcare. Practically everything will be impacted," he said.

The minister highlighted progress under the Semiconductor Mission, launched in 2022. Students in 278 universities are now using design tools, with 20 chips already manufactured at the Semi-Conductor Laboratory in Mohali and another 15 currently in production.

Budget support and regulatory sandbox

Finance Minister Nirmala Sitharaman said the Union government has consistently backed AI and quantum computing in the last five budgets. She also announced that a regulatory sandbox for the financial sector is in the works, which will allow controlled experimentation with AI applications. However, she underlined the need for "soft regulation" to accompany such innovation.

AI and economic growth

India's GDP is projected to reach $6.6 trillion by 2035 under its current 5.7 per cent growth trajectory. But if the aspirational 8 per cent path is achieved, GDP could rise to $8.3 trillion, an incremental $1.7 trillion higher, according to the reports. AI adoption could contribute $1-1.4 trillion to India's economy by 2035, helping bridge this gap. Vaishnaw also said the IndiaAI Mission had already exceeded its target for computing power. "We had aimed for 10,000 GPUs, but 38,000 are already available," he said.

Democratising technology

Both ministers framed AI as part of India's larger push to democratise technology, building on models such as the UPI and digital public infrastructure. Vaishnaw concluded that India's future in AI will rest on research, talent and responsible innovation. "We must ensure India remains at the frontier of AI and other critical technologies," he said, adding that the country's conscious tilt towards innovation over regulation would help secure its place as a global technology leader in the coming decades.