India’s AI Framework | Aditya Sharma

The Indian government is drafting a national AI framework that could completely change the way startups build and launch products. The plan includes the rollout of 38,000 GPUs at affordable rates, the creation of 500+ AI data labs across the country, and even sovereign large language models for Indian languages.

But it’s not just infrastructure — regulation is coming. AI systems may soon be classified as low-risk or high-risk. High-risk applications could require mandatory audits, approvals, and clear disclosures before they are deployed. Startups working in sensitive areas like finance, health, education, or biometric recognition should be prepared for added compliance layers.

This means founders need to watch not just the IndiaAI Mission, but also how it ties into the Digital Personal Data Protection Act (DPDP), future AI risk frameworks, and sector-specific guidelines like RBI’s proposed FREEAI framework for finance. The cost of ignoring compliance will not just be legal penalties — it could block fundraising, slow down scaling, and even restrict market access.

If you are building in AI, the opportunity is huge but so is the responsibility. Plan for compliance early, align your roadmap with regulation, and build for trust.
© CS Aditya Sharma
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