INTRODUCTION
What if the next viral image you generate for your Insta post or story could ruin your life, and there’s no law to stop it? So, to cater this issue the ministry of it department is doing something or not lets see by reading this blog as with billions invested in BharatGPT and GPU clusters powering homegrown AI[1], India’s tech ambition is crystal clear but in doing all these things the government is trying to make any law that can be used to regulate the various issues which can go wrong in this IndiaAI mission[2] for which its pushing so hard to make it successful the Meity for which it has invested Rs 10,300 crore. After all of this the government has decided to bring in a new law which will be well verse with new ai and LLM models which will be very helpful in regulating them for todays world its called the Digital India Act (DIA) it will replace the decade old Information Technology Act, 2000 but the main question remains will it come in time also can it protect citizens without slowing India’s AI rise?.
WHY INDIA NEEDS THE DIGITAL INDIA ACT
India is moving fast in the AI space, but our laws are still stuck in the past. The Information Technology Act, 2000, which is still the main law for anything digital, was made at a time when we didn’t even have smartphones, social media, or anything close to AI. That law doesn’t even mention terms like artificial intelligence, algorithms, or deepfakes.
But today’s internet is full of risks that didn’t exist back then. AI tools can now create fake voices, fake faces, clone identities, and even generate deepfake videos that look real. These tools can be used for blackmail, cyberbullying, or spreading fake news in seconds. There are no clear rules about who is responsible when AI causes harm. No law makes it mandatory for AI companies to do transparency audits, and there is no proper way for users to complain or get compensation if something goes wrong.
At the same time, the government is putting serious money into AI. Under the IndiaAI Mission, it’s investing over ₹10,300 crore to build GPU supercomputers, launch BharatGPT, and create a national platform for training and deploying AI. They’ve even started an AI Safety Institute to study the risks. All this shows that the government is serious about AI, but the question is, where are the laws to control it?
This is why the Digital India Act (DIA) is so important. It’s not just another policy — it’s meant to be the replacement for the IT Act, and it promises to finally bring in rules for AI, big tech, data platforms, and more. The government says it won’t rush this law[3], but the risks are already here. So the big question is — will it come in time?
KEY FEATURES EXPECTED IN THE DIA
While the final draft of the Digital India Act hasn’t been released yet, the Ministry of Electronics and Information Technology (MeitY) has given a sneak peek through public consultations. One of the most discussed features is risk-based regulation. This means that platforms with higher risk—like those deploying generative AI or algorithm-based decision-making—will have stricter obligations[4], like mandatory audits and disclosure requirements.
Another critical area is online safety. The DIA is expected to lay out strong rules to counter cyberbullying, misinformation, and AI-generated deepfakes. It may also introduce penalties for platforms that fail to act quickly against harmful content, especially if it spreads through automated or AI-driven systems.
One important shift will likely be the overhaul of the “safe harbour” provision. Earlier, intermediaries like social media companies had legal protection for what users posted. Under the new law, this protection may be taken away if platforms fail to act responsibly[5], especially when their algorithms amplify harmful content.
The law may also bring in KYC (Know Your Customer) requirements for digital service providers. This could include not just apps, but even IoT and wearable devices that collect and transmit user data.
In short, the DIA is being designed not just to punish wrongdoers but to build a safer and more transparent digital ecosystem.
HOW WILL THIS LAW AFFECT STARTUPS, BIG TECH, AND YOU?
The Digital India Act is not just going to hit headlines — it’s going to hit the way tech companies operate in India, from tiny AI startups to global giants. For Indian startups, the law might be a mixed bag. On one side, it brings much-needed clarity about what’s legal and what’s not, especially in areas like AI model training, user consent, and data sharing. But the worry is that too many rules might make it harder or more expensive for small companies to compete[6].
Big tech companies like Meta, Google, or OpenAI will probably have to change how their AI systems work in India. If they don’t follow new standards for transparency, algorithmic fairness, or user grievance systems, they could face fines — or worse, lose their right to operate freely here. India isn’t just a market for these companies anymore — it’s becoming a regulatory battleground, and the DIA could be a major player[7]
And what about everyday users like us? The law might finally give us tools to fight back, like the right to know why content is shown to us, or how a platform made a decision that affects us. Imagine being able to appeal a shadow ban or AI-based rejection for a job or loan — that could soon be possible.
So whether you’re a student building your first app, or just someone scrolling Instagram, the DIA is going to touch your digital life — and hopefully protect it.
CONCLUSION: THE LAW THAT CAN’T AFFORD TO WAIT
The Digital India Act isn’t just another law being added to the books — it’s the first real attempt by the Indian government to take control of a rapidly evolving digital world. In the past few years, India has made huge moves in AI — from investing over ₹10,000 crore into public infrastructure to pushing for platforms like BharatGPT and IndiaAI. But we’ve been doing all this under a legal system built in 2000, when social media didn’t exist and AI was still science fiction.
Now, that gap is starting to show. Every day, we hear stories of AI-generated scams, deepfake pornography, fake political content, and people being wrongly flagged or banned by algorithms. These aren’t isolated cases anymore — they’re becoming the new normal. But victims still don’t know how to fight back, and companies aren’t legally required to explain how their systems work.
The Digital India Act could change that. If done right, it will bring in rules that demand transparency, accountability, and give users more rights online. It will also push companies — both local and global — to build AI tools more responsibly, with real-world consequences if they don’t.
But the key word here is “if.” The government has already said it doesn’t want to rush the law[8], which is understandable — a bad law is worse than no law. But AI isn’t waiting. Scammers, deepfake creators, and biased algorithms are already out there, harming. So, while caution is good, delay could be dangerous.
This is India’s chance to not only lead in AI development but also AI governance. Let’s just hope we don’t let it slip while we’re still drafting.
Author(s) Name: Shouryaveer Singh (Chanakya National Law University, Patna)
References:
[1] Grover J, “Will Not Rush in Bringing Digital India Act: MeitY Secretary” The Financial Express (January 7, 2025) https://www.financialexpress.com/life/technology-will-not-rush-in-bringing-digital-india-act-meity-secretary-3708673/ accessed June 19, 2025
[2] Press Information Bureau, ‘Cabinet Approves IndiaAI Mission with a Budget Outlay of ₹10,371.92 Crore’ (7 March 2024)
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2012375 accessed 15 June 2025.
[3] Grover J, “Will Not Rush in Bringing Digital India Act: MeitY Secretary” The Financial Express (January 7, 2025) https://www.financialexpress.com/life/technology-will-not-rush-in-bringing-digital-india-act-meity-secretary-3708673/ accessed June 19, 2025
[4] Chauriha S, “How the Digital India Act Will Shape the Future of the Country’s Cyber Landscape” (The Hindu, October 9, 2023) https://www.thehindu.com/sci-tech/technology/how-the-digital-india-act-will-shape-the-future-of-the-countrys-cyber-landscape/article67397155.ece accessed June 19, 2025
[5] Sheikh A, “Transparency Must Be a Cornerstone of the Digital India Act” (Tech Policy Press, April 23, 2024) https://www.techpolicy.press/transparency-must-be-a-cornerstone-of-the-digital-india-act/ accessed June 19, 2025
[6] Economic Times, ‘Digital India Act: MeitY’s New Law Aims to Regulate AI, Deepfakes, Big Tech’ (18 March 2024) https://economictimes.indiatimes.com/tech/technology/digital-india-act-meitys-new-law-aims-to-regulate-ai-deepfakes-big-tech/articleshow/108567720.cms accessed 19 June 2025.
[7] Aahil Sheikh, ‘Transparency Must Be a Cornerstone of the Digital India Act’ Tech Policy Press (23 April 2024) https://www.techpolicy.press/transparency-must-be-a-cornerstone-of-the-digital-india-act/
accessed 19 June 2025.
[8] Inc42, ‘India’s AI Regulations Won’t Deter Innovation: MeitY Secretary’ (Inc42, <date>?) https://inc42.com/buzz/indias-ai-regulations-wont-deter-innovation-meity-secretary/> accessed 19 June 2025.
