The government will table a Bill embedding AI law in statutes, expanding its mandate and enabling flexible regulation as technology evolves, after public consultation ends on November 6.
India’s Ministry of Electronics & Information Technology (MeitY) is moving to introduce a stand-alone law governing artificial intelligence (AI) — modelled closely on the existing Information Technology Act, 2000 (IT Act). The push follows draft rules this year aimed at tackling deepfakes and synthetic content, but officials say those rules may be vulnerable to legal challenge because their parent statute does not explicitly address AI.
This move to anchor AI regulation in a full-law built on the IT Act framework represents a significant shift in digital governance. It signals recognition that the age of generative AI requires statutory clarity, platform accountability and a governance architecture that evolves alongside technology.
Why a Full Law?
Under current arrangements, the draft rules on identifying, labelling and regulating synthetically generated content are framed under the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 — which derive their powers from the IT Act. But because the IT Act does not specifically deal with AI technologies, cyber-law experts warn that the rules could be struck down in court for exceeding the parent law’s remit.
Official sources say that following the close of public consultation (which ends November 6) the government plans to table a Bill in Parliament that will embed an AI-law into the statute book, giving it a wider mandate, and making it possible to evolve the regulatory regime as the technology advances.
Key Obligations on Platforms
Under the proposed rules, platforms and intermediaries that allow creation, modification or sharing of synthetically generated content will face fresh obligations:
- Any publicly-shared synthetic audio, video or image must carry a visible, non-removable label or embedded metadata identifying it as artificial. For visual content, the label must cover at least 10% of the screen. For audio, the label must be stated within the first 10% of playtime.
- Major social media intermediaries with over five million users will have additional burdens: At upload time they must seek user declarations on whether the content is AI-generated, and they must deploy proportionate technical tools to verify the claim. If the content is found to be synthetic, it must carry the appropriate labelling.
- The rules apply only to publicly-shared content, not to private or unpublished communications, ensuring that safe-harbour protections under Section 79(2) of the IT Act continue to apply to platforms for user-generated content.
India’s AI Governance Move
India already is advancing its broader AI governance agenda. A national AI governance framework is under development, intended to take a less-prescriptive, more voluntary stance aimed at spurring innovation rather than rigid compliance.
In September 2025, the National Cyber and AI Center (NCAIC) published a draft “AI Governance Framework for India 2025-26” which lays out a risk-based taxonomy for AI, lifecycle controls, assurance mechanisms and alignment with global norms.
In August 2025 a committee of the Reserve Bank of India proposed a framework for AI in the financial sector, emphasising innovation and risk management in tandem.
What’s Driving Urgency?
The rapid rise of generative AI, deepfakes and manipulated media has raised serious concerns globally — and India’s large and diverse internet-user base makes it particularly vulnerable to misuse via disinformation, impersonation and harm to public trust. The draft rules on labelling thus seek to address that via clear obligations for platforms.
Legal experts note that having a full-bodied law rather than just subordinate rules would give regulators stronger powers and make the regime more robust and future-proof. One expert remarked: “Rules are secondary in nature and cannot exceed the ambit of the parent law.”
What Lies Ahead
After the closure of the public consultation period, MeitY will finalise the rules and announce next steps for bringing the full Bill. Officials say the new law will be introduced in Parliament, create a statutory basis for AI regulation, allow expansion via rules as tech evolves and provide clarity for intermediaries and platforms.
Industry players and platforms are now monitoring how obligations will be structured — particularly around labelling, user disclosures and verification tools. Some express concern about compliance burden while others note that clear rules provide certainty for developing safe and trusted AI services.
Meanwhile, the governance framework being developed aims to provide a guiding architecture for how AI should be assessed, controlled and deployed across sectors — including public, private and financial services.
Challenges and Questions
Some of the unresolved questions include: How will the labelling mechanism work in practice for smaller platforms? Will the law cover AI models or only synthetic content? How will enforceability and penalties be structured? And how can innovation be balanced with regulation so India remains globally competitive in AI while safeguarding against harm?
As one commentator observed, the key is striking “the right balance, making sure that society stands to gain from what this technology has to offer, while mitigating its risks”.
Image: Hippopx
