India’s regulatory landscape for Big Tech has entered a pivotal phase, influenced by the rapid growth of artificial intelligence (AI) and the rollout of the Digital Personal Data Protection (DPDP) framework. This evolution highlights the government’s shifting approach toward platform responsibilities under the Information Technology (IT) Rules. As AI becomes a central topic in corporate boardrooms and policy discussions, the Indian government has opted for a cautious regulatory stance. Aparajita Bharti, Founding Partner of The Quantum Hub, noted, “AI has been the flavour of the season,” acknowledging both the excitement and trepidation surrounding the technology’s pace of change.
Rather than pursuing broad preemptive regulations, India has maintained a pro-innovation posture, intervening selectively in areas where specific risks arise, particularly concerning deepfakes and synthetic media. This approach reflects a broader policy shift from reactive governance to a collaborative framework that sets boundaries without dismantling platform dominance. Sourya Banerjee, Associate Director of Public Policy Communications at Jajabor Brand Consultancy, emphasized the government’s movement toward a model that clarifies operational limits while encouraging the scalability of technology firms. This balanced strategy was evident in the consultations leading up to the AI Action Summit scheduled for February, where the government welcomed industry input but asserted that final policymaking authority would remain with the state.
The current regulatory landscape has been shaped by a particularly active year in policy developments. Kamesh Shekar, Associate Director at The Dialogue, noted the release of India’s AI Governance framework, the finalization of DPDP rules, a market study on AI by the Competition Commission of India, and the Reserve Bank of India’s framework for AI in financial services. Together, these initiatives signify a concerted effort by India to align its digital infrastructure with the demands of the AI era.
Despite this progress, challenges remain. A significant tension exists at the intersection of AI development and the DPDP. While the new legislation strengthens consent and accountability, both Shekar and Banerjee caution that the consent-only model could struggle to accommodate the data requirements of large-scale AI training and text-and-data mining. Without provisions for “legitimate interest,” which are common in global data protection frameworks, compliance issues could arise for AI models that depend on vast data pools. “We will not know the full extent of its implications for at least another year,” Banerjee warned.
India’s decision to eschew Western regulatory templates adds another layer of complexity. Bharti explained that policymakers are intentionally crafting governance structures tailored to India’s unique scale, political economy, and growth priorities. Instead of adopting the EU’s restrictive model, India is pursuing a distinctive framework aimed at balancing innovation, sustainability, and sovereignty. This is particularly evident in AI governance, where the government has prioritized strategic autonomy and innovation, bolstered by significant investments in domestic AI capabilities through the IndiaAI Mission. Major global firms like Google, Microsoft, and Amazon are also investing in this space, alongside state support for local companies such as Zoho, Sarvam, and MapMyIndia.
Looking ahead, the critical challenge lies not in political will or enforcement capability but in regulatory coordination. Banerjee highlighted that the year 2026 will test India’s ability to unify its increasingly complex patchwork of policies into a cohesive ecosystem that fosters economic growth while protecting citizens. Meanwhile, both Bharti and Shekar note that India’s 25-year-old IT Act is becoming strained under the demands of today’s digital economy. The partial amendments made through the IT Rules may soon prove inadequate, leading to calls for a comprehensive overhaul akin to the recent legislative reset seen in the telecom sector.
As India navigates the intricacies of governing Big Tech in the AI age, the effectiveness of the regulatory structures being established will play a crucial role. The ability of these frameworks to withstand pressures from global competition, domestic innovation aspirations, and rising societal risks will be instrumental in shaping the future of India’s digital economy.
See also
2026: AI Adoption Demands Compliance and Strategic Partnerships as Regulations Tighten
Big Law Leaders Embrace AI and Talent Competition Amid Workplace Evolution
OpenAI’s Rogue AI Safeguards: Decoding the 2025 Safety Revolution
US AI Developments in 2025 Set Stage for 2026 Compliance Challenges and Strategies
Trump Drafts Executive Order to Block State AI Regulations, Centralizing Authority Under Federal Control
