The establishment of an India AI regulatory body marks a significant milestone in the country’s approach to managing artificial intelligence. The Government of India, through the Ministry of Electronics & Information Technology (MeitY), is set to create a dedicated body for AI governance — the Artificial Intelligence Governance Group (AIGG), along with a supporting expert committee, the Technology & Policy Expert Committee (TPEC).
This article explains what the regulatory body is, why it is being set up, how it will work, and what the implications are for AI regulation, innovation and business in India.
What is the India AI Regulatory Body?
- The proposed body is the AIGG, which will act as a permanent inter-agency governance group for AI, coordinating policy across ministries and regulatory bodies.
- It will be supported by TPEC, a smaller expert panel providing strategy, policy advice and technical/ethical guidance.
- Their formation is outlined in the newly published India AI Governance Guidelines, which state that “The AI Governance Group (AIGG) should be set up …” and provides details of their roles.
- The bodies are expected to be set up by December 2025. Business Standard
Why the Regulatory Body is Needed
- As AI systems evolve rapidly, India recognises the need for a coordinated governance mechanism to oversee innovation, risk, safety and accountability.
- Several reports and committees have pointed to regulatory gaps: existing laws (e.g., the IT Act) were not designed for modern AI systems. The regulatory roadmap recommends a new apex agency to coordinate policy across sectors.
- India’s broader ambition: through the IndiaAI Mission, the country aims to become a global leader in AI innovation, while ensuring safety, inclusion and social benefit. The new regulatory body supports this.
How the Regulatory Body Will Work
Major aspects & structure
- The AIGG will bring together senior officials from key ministries including MeitY, Home Affairs, External Affairs, Science & Technology, Telecom as well as regulators such as Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Competition Commission of India (CCI) and Telecom Regulatory Authority of India (TRAI).
- TPEC will be composed of experts in fields like machine learning, data science, law, public policy, cybercrime and emerging technology.
- MeitY will act as the nodal ministry for overall AI governance, while sectoral regulators will continue to have domain-specific oversight.
- The Guidelines identify an action plan covering short-term (set up AIGG, begin risk categorisation), medium-term (amend laws if needed) and long-term (possibly new legislation) steps.
Mandate & functions
- Coordinate policy and governance of AI across ministries and sectors.
- Review existing regulatory mechanisms and identify gaps related to AI.
- Ensure safe, trustworthy and inclusive deployment of AI; manage risks related to bias, transparency, accountability.
- Support innovation and growth of the AI ecosystem in India, aligning with national objectives.
What This Means for Innovation and Business
Opportunities
- Businesses deploying AI in India may benefit from clearer guidelines and coordination — less regulatory uncertainty.
- The new body may result in more streamlined processes for integration of AI in sectors like finance, healthcare, education.
- The Indian AI ecosystem may get stronger support, enabling startups and industry to scale with governance certainty.
Challenges & considerations
- Companies may need to align with new oversight mechanisms, risk-classification frameworks and possibly reporting obligations.
- While the approach emphasises innovation-friendly regulation, some fear it may introduce compliance costs or slow rollout. Analysts note that India’s “light-touch” approach must still be backed by enforcement.
- The creation of a coordinating body is only the first step — sectoral regulation and legal adaptation will still be required.
Timeline & Next Steps
- By December 2025: AIGG and TPEC expected to be formally constituted.
- Early 2026: First meetings, policy frameworks, regulatory coordination begin. Short-term tasks include risk-classification for AI systems. The Economic Times
- Medium term: Review of existing laws (such as the IT Act) and potential legal amendments.
- Longer term: Possible enactment of dedicated AI legislation, once the regulatory framework and institutional mechanisms are in place.
Conclusion
The launch of an India AI regulatory body (AIGG) supported by an expert committee (TPEC) reflects a major shift in how India governs artificial intelligence. By setting up a dedicated coordination and oversight mechanism, the Government aims to balance innovation with safety, and unlock AI’s potential for societal benefit while managing risks.
For businesses, developers and policymakers, this move provides clarity that India is serious about AI governance — but also signals that companies must prepare for evolving regulatory expectations.
