On Monday, September 15, 2025, India’s Finance Minister, Nirmala Sitharaman, underscored a crucial point: future regulations must cultivate technological innovation, particularly in Artificial Intelligence (AI), with a keen eye on responsibility, rather than suppressing its growth.
Speaking at the release of the NITI Aayog report, ‘AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth,’ she affirmed the government’s strong commitment to both embracing AI advancements and guaranteeing their ethical and careful integration across all industries.
In New Delhi, following the report’s unveiling, Minister Sitharaman articulated, ‘We are not seeking regulations that extinguish technology entirely. Instead, our goal is to establish frameworks that ensure AI is applied responsibly.’
She further cautioned, ‘Given AI’s rapid evolution, real-time dynamics, and inherent challenges, we must remain vigilant and not become complacent regarding ethical considerations.’
The Minister highlighted that the challenges extend beyond job displacement to include the potential for misuse, which could have significant and far-reaching societal repercussions.
The NITI Aayog report itself forecasts a dual impact from AI: while it’s expected to generate numerous novel job opportunities, it will also inevitably automate and displace many current roles, especially those in clerical, routine, and lower-skilled sectors.
For India, this presents a two-pronged challenge: developing a skilled workforce proficient in advanced digital and AI capabilities to seize emerging prospects, and concurrently ensuring that individuals whose jobs are disrupted find meaningful employment through comprehensive reskilling programs, strategic redeployment, or integration into other expanding economic sectors.
The report concludes that for productivity gains and innovation to genuinely drive economic growth, they must be matched by robust market creation. This necessitates India’s simultaneous efforts to bolster domestic demand and enhance its engagement in global value chains.
Achieving this will demand a cohesive strategy that aligns industrial and trade policies, particularly in light of the rapidly shifting global regulatory landscape.
As an example, the report points to the European Union’s forthcoming AI Act, which will introduce staggered obligations for both general-purpose and high-risk AI systems. Furthermore, new climate-focused trade policies, such as carbon border adjustments, are poised to redefine conditions for market access.