Speaking on September 15, 2025, Finance Minister Nirmala Sitharaman underscored the vital importance of crafting regulations that actively encourage technological innovation, especially within the rapidly evolving field of Artificial Intelligence (AI). Her stance is clear: policies should foster growth, not impede it.
The Indian government is committed not only to embracing AI technologies but also to ensuring their ethical and responsible implementation across all sectors. This commitment was reaffirmed during the release of NITI Aayog’s insightful report, ‘AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth’.
“We are not seeking regulations that would effectively wipe out technology itself. Instead, our goal is to establish regulations that guarantee responsible application,” Sitharaman stated following the report’s launch in New Delhi.
She further elaborated on the dynamic nature of AI, noting, “AI is a fast-paced, real-time, and constantly evolving phenomenon. Therefore, we must all remain acutely aware that we cannot afford to overlook the ethical considerations, as AI undeniably presents its own set of challenges.”
The Finance Minister cautioned that these challenges extend beyond mere job impact; they also encompass the potential for misuse, which could have far-reaching repercussions for society as a whole.
The NITI Aayog report corroborates this, projecting that while AI is set to generate numerous new employment opportunities, it will also inevitably displace many existing jobs, particularly those in clerical, routine, and low-skill categories.
For India, this presents a two-pronged challenge: adequately preparing its workforce with advanced digital and AI proficiencies to seize emerging opportunities, while simultaneously ensuring that those whose jobs are displaced find meaningful employment through effective reskilling, redeployment, or absorption into other burgeoning sectors of the economy.
Ultimately, the report emphasizes that productivity gains and innovation must be aligned with market creation to genuinely translate into sustained economic growth. This means India must work towards simultaneously bolstering domestic demand and strengthening its participation in global value chains.
Achieving this will necessitate a cohesive alignment of industrial and trade policies, especially as international regulatory frameworks continue to evolve at a rapid pace.
As an example, the report points to the European Union’s AI Act, which will progressively introduce obligations for both general-purpose and high-risk AI systems. Similarly, new climate-related trade measures, such as carbon border adjustments, are poised to significantly influence future market access conditions for Indian businesses.