DATA GOVERNANCE AND ARTIFICIAL INTELLIGENCE IN INDIA: BALANCING INNOVATION, PRIVACY AND REGULATORY COMPLIANCE

India’s increasing adoption of artificial intelligence has exposed significant tensions within a date governance framework that was not designed to regulate algorithmic decision making. This paper examines the relationship between India’s policy emphasis on promoting innovation in artificial intelligence, its constitutional and statutory protections for privacy and the regulatory compliance obligations that presently govern AI development. The paper examines the constitutional recognition of privacy as a fundamental right, the statutory framework established by the information technology act, 2000 and the digital personal data protection act, 2023 and the largely non-binding policy instruments particularly NITI Ayog’s national strategy for Artificial intelligence that continue to influence AI governance and regulatory compliance in India. Drawing upon doctrinal analysis and a comparative study of the European union’s risk based regulatory model it argues that India’s reliance on sector specific regulation and voluntary ethical principles leaves significant compliance gaps in addressing algorithmic harms particularly in law enforcement, credit assessment and public welfare administration. Three case studies are examined to evaluate how these regulatory shortcomings operate in practice. The paper concludes that India need not abandon its innovation oriented approach to artificial intelligence but should strengthen the existing legal framework by introducing enforceable compliance obligations for high risk AI systems. Keywords: Artificial Intelligence, Data Governance, Digital Personal Data Protection Act, Privacy, Regulatory Compliance, Algorithmic Accountability, India.