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Govt body plans legal framework for AI companies, tech oversight

21 Apr 2026
2 min

Artificial Intelligence Governance and Economic Group (AIGEG)

The Indian government has established the Artificial Intelligence Governance and Economic Group (AIGEG) to develop a unified legal framework for AI companies, including developers of language models and chatbot systems.

Proposed Framework

  • The framework aims to: 
    1. Set clear boundaries and establish regulatory sandboxes for AI products and services.
    2. Ensure accountability and compliance with domestic laws for companies developing AI tools.

This framework will apply to all companies operating or offering AI tools and services in India.

Strategic Focus Areas

  • AI Strategy Enhancement:
    1. Focusing on a few use cases capable of delivering measurable outcomes within 12 to 18 months.
    2. Priority sectors include health care, agriculture, and education.
  • Reskilling and Upskilling:
    1. Addressing potential job losses by retraining impacted job profiles.
    2. Conducting consultations with industry groups and companies for effective retraining strategies.

AIGEG Formation and Structure

  • Formed by the Ministry of Electronics and Information Technology (Meity).
  • Chaired by the Union Minister for Electronics and Information Technology.
  • Includes high-level officials: 
    1. Minister of State for Electronics and Information Technology as Vice-Chairperson.
    2. Principal Scientific Adviser to the government.
    3. Chief Economic Adviser and Chief Executive of NITI Aayog.
    4. Secretaries from key departments such as telecommunications, economic affairs, science and technology, and information technology.

Technology and Policy Expert Committee

  • Formed to support the AIGEG with technical and policy expertise.
  • Headed by the IT Ministry Secretary.
  • Members include: 
    1. B Ravindran from IIT Madras and Rajat Moona from IIT Gandhinagar.
    2. Representatives from industry bodies like Nasscom, Data Security Council of India, and Manufacturers' Association for Information Technology.
  • Roles: 
    1. Provide insights on AI governance, assess capabilities, identify risks, and address regulatory gaps.
    2. Help shape India’s policy response to emerging AI technologies.

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RELATED TERMS

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Nasscom

The National Association of Software and Service Companies, a premier industry association for the IT and BPM (Business Process Management) industries in India. It plays a crucial role in policy advocacy, research, and promoting the sector.

NITI Aayog

National Institution for Transforming India. It is a policy think tank and apex public body of the Government of India for facilitating innovation and entrepreneurship in the country. It replaced the Planning Commission.

Ministry of Electronics and Information Technology (MeitY)

A ministry of the Government of India responsible for promoting e-governance, digital inclusion, and the growth of IT and IT-enabled services, including cyber security policy formulation.

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