Legal Aspects of Artificial Intelligence in India

Artificial intelligence is increasingly being used across sectors such as healthcare, finance, law enforcement, and public administration in India, yet the country still lacks a dedicated legal framework to regulate its development and use. This paper examines the existing legal and regulatory framework applicable to AI in India, with particular focus on the Information Technology Act, 2000, the Digital Personal Data Protection Act, 2023, and sector-specific guidelines issued by regulators such as the Reserve Bank of India and the Securities and Exchange Board of India. It also analyses key legal issues arising from the deployment of AI, including liability for AI-caused harm, intellectual property, algorithmic bias, deepfakes, automated decision-making, and AI-powered State surveillance. Further, the paper considers India's current policy initiatives, including the IndiaAI Mission, and compares India's approach with international developments, particularly the European Union's AI Act. It concludes that while India's existing legal framework provides a useful starting point, it is not sufficient to address the complex challenges posed by artificial intelligence. The paper argues that India should adopt a dedicated, risk-based legislative framework that promotes innovation while ensuring accountability, transparency, and the protection of fundamental rights.