Context:

• As the AI Impact Summit unfolds in Delhi, global leaders and technology experts are debating how artificial intelligence should be governed at a time marked by both opportunity and uncertainty.
• The central challenge is finding a model that promotes innovation while addressing the known and emerging risks of AI.
• India, as host, has positioned itself as offering a “Third Way” in AI governance.
• Unlike the European Union’s compliance-heavy regulatory framework, the United States’ largely market-driven approach, or China’s state-centric model, India seeks a path tailored to the realities of the global majority.
• The aim is to enable broader participation in AI markets while crafting governance mechanisms suited to diverse economic and policy contexts.
• This article highlights India’s emerging “Third Way” for AI governance, positioned between the European Union’s compliance-heavy model, the United States’ market-led approach, and China’s state-centric system.

India’s Distinct AI Governance Model

• Beyond Regulation: A Governance Framework
  • In November 2025, India released its AI governance guidelines, designed not merely as a regulatory tool but as a broader governance framework.
  • As noted by experts, the framework extends beyond risk mitigation to include adoption, diffusion, diplomacy, and capacity-building.
  • Rather than introducing standalone AI legislation, it works within existing legal structures, aiming to remain agile and adaptable as the technology evolves.
  • The framework prioritises inclusive AI deployment in sectors such as healthcare, agriculture, education, and public administration, translating high-level principles into practical guidance while allowing room for future refinement.
• Early Regulatory Steps
  • India has already begun implementing this approach. Amendments to the IT Rules now require platforms to label AI-generated content and enforce a three-hour takedown window for harmful material.
  • This marks one of the first government-mandated AI disclosure requirements globally.
  • However, ensuring effective enforcement—particularly against large technology platforms—while safeguarding democratic norms and human rights will require international coordination.
• Implications for the Global South
  • The concentration of AI investment among a few private actors in the Global North has created structural imbalances in access and governance.
  • Many countries remain dependent on proprietary AI systems, which may not align with local economic or social priorities.
  • India’s model, grounded in strategic autonomy and public-private collaboration, offers an alternative.
  • It advocates for shared research infrastructure, safety evaluation frameworks, and collaborative risk assessment among middle powers.
• A Coordinating Role for India
  • Given its scale, digital infrastructure experience, and growing AI ecosystem, India is positioned to convene cooperation across the Global South.
  • By promoting collaborative governance and inclusive AI development, it seeks to create a pathway that balances innovation, sovereignty, and equitable growth.

Bridging the Gaps in India’s AI Governance Model

• The Missing Human-Centric Safeguards
  • While India’s AI governance framework emphasises innovation and adoption, critics highlight a critical gap: insufficient protection for workers displaced by automation.
  • A governance model that accelerates AI diffusion without ensuring labour safeguards, transparency standards, accountability mechanisms, and whistleblower protections risks deepening inequality rather than addressing it.
  • Inclusive AI must extend beyond infrastructure and innovation to protect those most vulnerable to technological disruption.
• Need for Minimum Global Standards
  • Effective coordination requires shared minimum safeguards—mandated transparency from AI developers, accountability frameworks, and protections for affected communities.
  • Without these foundational principles, even well-intentioned international collaboration may falter. Governance must balance strategic autonomy with enforceable human-rights safeguards.
• AI Impact Summit: A Strategic Opportunity
  • The AI Impact Summit offers India a platform to demonstrate what equitable AI governance can look like.
  • By fostering robust public-private partnerships across the technology stack and distributing gains more fairly, India can position itself as a hub for agile, middle-power collaboration in AI governance.
• A Defining Moment for the ‘Third Way’
  • The coming year will test whether India can successfully integrate innovation, national security, and human welfare.
  • If these gaps are addressed, India’s “Third Way” could emerge as a credible global model; if not, governance weaknesses may undermine its ambition.