India retracts AI regulation amidst tech backlash
NEW DELHI, INDIA — In a sudden policy reversal, India’s IT Ministry has withdrawn its controversial advisory requiring artificial intelligence (AI) companies to obtain government approval before launching products online.
The revised guidelines, issued on March 15th, no longer mandate permission but instruct AI firms to label untested or unreliable models to inform users about potential inaccuracies.
The original March 1st directive had drawn intense criticism from the tech industry, which feared it could break India’s AI innovation drive. The industry tagged it as “anti-public” and “demotivating.”
“There is no legal power for MEITY to issue such advisories. It’s an illegal administrative practice,” said Apar Gupta, an advocate who termed the earlier rules as “vague censorship.”
While both versions warn against AI bias or interference in elections, the withdrawal provides “momentary accountability” following pressure from Indian and global tech giants, according to Gupta.
The advisory followed a controversy over Google’s Gemini chatbot allegedly providing a biased response about Prime Minister Narendra Modi. Though the government initially defended the rules, Electronics Minister Rajeev Chandrasekhar later stated they wouldn’t apply to startups despite no such exemption in the text.
Rohit Kumar, founder of AI policy think-tank The Quantum Hub, welcomed the reversal, saying the original advisory “would have severely reduced speed to market and dented the innovation ecosystem.” However, he stressed the need for “procedural safeguards” through consultative policymaking.
