Regulations, risks, and open source: India’s three-pronged strategy for sovereign AI

India will soon get a consultation paper on the regulation of Artificial Intelligence — laying the groundwork for future governance of the technology across sectors. The announcement came even as top officials highlighted the data transfer risks posed by proprietary AI models and stressed the need for ‘strategic autonomy’. Projections shared by the government at the end of December 2025 suggest AI could add $1.7 trillion to India’s economy by 2035.

“A decision has been made on how AI will be regulated in the future, and a consultation paper will be released next month. This will cover AI safety, cybersecurity, the benefits and harms of artificial intelligence, and especially ensuring that everyone benefits from AI.