Technology Regulation: AI and Data Privacy in India’s Digital Future

 In 2025, India’s rapid digitalization faces an urgent crossroads, with the rise of artificial intelligence (AI) and data privacy concerns becoming the focal points of national debate. As India navigates its transition into a global tech powerhouse, questions about the ethical use of technology and the security of personal data are shaping the future of governance, innovation, and democracy. AI’s integration into sectors ranging from healthcare to policing has promised remarkable advancements, but it has also raised alarm over surveillance, bias, and the potential for job displacement. Simultaneously, data privacy has become a flashpoint, as individuals increasingly worry about how their personal information is being collected, processed, and monetized by tech giants.

On the AI front, India has witnessed rapid adoption of AI technologies in both the public and private sectors. In a recent interview with The Economic Times, NITI Aayog’s CEO Amitabh Kant revealed that India is investing heavily in AI to boost economic growth. "AI is our future, but it’s crucial to ensure that its application is ethical and inclusive," he said. But the country’s embrace of AI comes with a double-edged sword: concerns about the algorithmic bias and the lack of accountability in AI decision-making. A report by India Today highlighted the use of AI by law enforcement agencies in facial recognition systems, raising concerns about racial profiling and wrongful arrests.One of the most high-profile cases in this regard has been the use of AI-driven systems to monitor and track criminal activity in major cities. While some argue that these technologies enhance security, others, including Dr. Anjali Khatri, a professor of ethics at JNU, warn of the broader implications. In an interview with The Wire, Khatri emphasized, "AI can easily perpetuate existing biases, especially against marginalized communities. Without rigorous regulation, AI could become an instrument of surveillance rather than protection."

Parallel to the concerns around AI is the growing crisis of data privacy. India’s digital economy is booming, but with it comes the challenge of protecting citizens' personal data. The recent Personal Data Protection Bill, 2024, which was passed by Parliament, seeks to regulate the collection, processing, and storage of data by tech companies. However, experts have raised concerns about loopholes in the law that could lead to surveillance without adequate safeguards. In an interview with Mint, Raman Jit Singh Chima, Policy Director at Access Now, argued, “While the Data Protection Bill is a step forward, it is not strong enough to protect Indians from mass surveillance. The government’s powers to access data without adequate judicial oversight is a significant concern.”

The question of data sovereignty also looms large. India is home to over 700 million internet users, a number that is expected to grow exponentially. Yet, as highlighted in an investigative report by The Hindu, much of the data generated in India is stored in foreign data centers controlled by global giants like Amazon, Google, and Facebook. This raises issues of national security and the vulnerability of sensitive personal information. R. S. Sharma, former Chairman of the Telecom Regulatory Authority of India (TRAI), discussed the implications during a keynote speech at a Tech for Good summit: "We need data sovereignty. If our data is being processed elsewhere, we lose control over how it is used."Public trust in tech companies is also at a record low. A survey conducted by Times of India revealed that 70% of Indians expressed concerns about how their data is used, with many feeling that they have little control over their own personal information. Many believe that the Data Protection Bill is just the first step in addressing these concerns. However, the real challenge lies in enforcement, as tech companies have historically found ways to bypass regulations or delay compliance.

Big Tech is not without its defenders. Industry insiders argue that regulations should not stifle innovation. Sandeep Sharma, a tech entrepreneur and founder of an AI startup, pointed out during an interview with Business Standard: “The regulatory framework should strike a balance. Too much regulation can kill the innovative spirit that is the backbone of our tech industry. We need a framework that encourages growth while protecting individual rights.” Yet, as many experts contend, the balance seems elusive. India’s regulatory framework must evolve rapidly to stay ahead of the fast-changing technological landscape.

The AI Act of the European Union, which focuses on creating a comprehensive regulatory framework for AI, has become a model for many countries, including India. Discussions about adopting similar measures in India are gaining traction. Legal scholars like Dr. Shyam Divan, who wrote extensively on privacy law, argue that India must move quickly to create robust AI and data protection laws that are adaptive and transparent. “We can’t afford to be reactive. The regulatory framework must evolve in tandem with technological advancements,” Dr. Divan emphasized in a recent interview with The Hindu.

Meanwhile, civil society organizations are ramping up their campaigns for greater accountability and transparency. Activists from Software Freedom Law Center (SFLC.in) and Privacy International have staged protests against data exploitation practices, demanding stronger enforcement of privacy rights and the formation of an independent body to oversee AI applications. “Surveillance is not just about technology; it’s about power. And that power needs to be checked,” said Prasanth Sugathan, an advocate with SFLC.in, in an interview with The Quint.

In the midst of these debates, India’s tech giants, such as Infosys, Wipro, and Tata Consultancy Services (TCS), are stepping up efforts to create AI ethics boards and data privacy compliance units. These moves have been largely seen as an attempt to preempt potential government regulations, but they also highlight the growing recognition within India’s corporate sector of the need for self-regulation in the face of rising public concerns.

India’s technology landscape is growing faster than its regulatory mechanisms, leading to a race against time. As Dr. R. S. Sharma put it, "We must embrace innovation, but we must also protect our citizens’ rights. AI is a tool — it should never become the master."

With technology advancing exponentially, the key challenge for India in 2025 remains clear: how to regulate AI and data privacy without stifling innovation, while ensuring transparency, security, and justice. The next few years will be pivotal, as the decisions made now will determine whether India’s tech future is one of empowerment or exploitation.

BY:AYUSH CHATURVEDI