India is considering standalone AI legislation as the European Union’s AI Act reshapes global approaches to artificial intelligence regulation.
The EU framework uses a risk-based approach, applying different requirements to prohibited, high-risk, limited-risk, and general-purpose AI systems.
Some rules already prohibit practices such as social scoring, certain emotion recognition systems, and untargeted facial image scraping. General-purpose AI providers also face documentation, copyright, and transparency requirements.
The rules can affect Indian technology companies serving European markets. Compliance responsibilities can extend across developers, importers, distributors, and deployers.
High-risk AI systems can require conformity assessments, record-keeping, human oversight, and technical documentation. Substantial modifications can also trigger fresh compliance requirements.
These rules could create opportunities for Indian professional-services and technology firms. AI auditing, testing, conformity assessment, documentation, and regulatory consulting could become growing service areas.
India could also seek greater participation in Europe’s AI conformity ecosystem through appropriate institutional arrangements. Its technology and professional-services capabilities provide a potential foundation.
For India, the challenge is balancing innovation with safeguards. A risk-based domestic framework could protect users while helping Indian companies remain competitive internationally.
