A ‘Third Way’ for AI governance

A 'Third Way' for AI Governance — UPSC Study Note

1. At a Glance

• India has articulated a "Third Way" for global AI governance — distinct from the EU's compliance-heavy regime, the US's market-led, hands-off approach, and China's centralised state-control model. [S1]
• Released in November 2025, India's AI Governance Guidelines (under MeitY) are not merely a regulatory document but a broader governance framework spanning adoption, diffusion, diplomacy, and capacity-building. [S2][S3]
• The framework aspires to serve as a replicable model for the Global South, where existing governance architectures designed for advanced economies do not transfer cleanly. [S1][S4]
• Relevant across GS-II (governance, international relations) and GS-III (science & technology, economic development).

2. Why in the News

• February 19, 2026: The AI Impact Summit was held in New Delhi; India formally presented its "Third Way" framework to world leaders and technology experts. [S1]
• The summit occurred at a moment of global confusion about how to regulate AI while enabling strategic competitiveness — making India's approach a live diplomatic event, not just a policy document. [S1]
• November 2025: MeitY unveiled the India AI Governance Guidelines, which provided the substantive basis for India's summit positioning. [S2][S3]

3. Background & Evolution

• 2023: India assumed the G20 Presidency and mainstreamed AI governance onto the multilateral agenda; issued the New Delhi Leaders' Declaration with language on responsible AI. [S4]
• 2024: India launched the India AI Mission (Cabinet approval: March 2024) — ₹10,371.92 crore outlay over five years — as the foundational infrastructure layer for AI compute, datasets, and startups. [S3]
• February 2025: India participated in the AI Action Summit in Paris, positioning itself as a voice for the Global South. [S4]
• November 2025: MeitY released the India AI Governance Guidelines — non-binding, principle-based, with an action plan across short-, medium-, and long-term timelines. [S2][S3]
• February 2026: AI Impact Summit, New Delhi — India hosts, formally advances the "Third Way" concept internationally. [S1]

4. Core Static Facts

5. Multi-Dimensional Analysis

Geopolitical / Strategic

• India's "Third Way" frames AI governance as a diplomatic instrument, not just a regulatory exercise — enabling influence over countries that cannot adopt EU or US models. [S1]
• India aims to lead an AI Safety Commons for the Global South: shared datasets, benchmarks, and governance resources to reduce asymmetry between AI-producing and AI-consuming nations. [S4]
• Positions India as a swing state in AI geopolitics, resisting both US tech-platform dominance and Chinese state-centric AI export. [S1]
• Engagement in G20, OECD, and UN fora reinforces India's claim to multilateral AI agenda-setting. [S4]

Economic

• India AI Mission (₹10,371.92 crore) funds compute infrastructure, startup ecosystem, and indigenous dataset creation — prerequisites for avoiding dependence on foreign AI stacks. [S3]
• Framework's principle of "Innovation over Restraint" is explicitly designed to avoid regulatory chill on Indian AI start-ups and SMEs. [S2]
• Focus on AI adoption in agriculture, health, and education targets productivity gains in sectors employing the majority of India's workforce. [S4]

Legal / Constitutional

• The Guidelines are currently non-binding — there is no enabling legislation equivalent to the EU AI Act; they are policy directives, not justiciable law. [S2]
• The framework's "Do No Harm" principle and sandbox mechanism borrow from financial sector regulation precedents (RBI regulatory sandbox). [S2]
• Absence of statutory backing is both a flexibility advantage (adaptive governance) and a weakness (no enforcement mechanism). [S1]

Ethical / Governance

• Framework adopts risk-proportionate approach: heavier oversight for high-risk AI (health, judiciary, critical infrastructure), lighter for low-risk applications. [S2]
• "Understandable by Design" principle mandates explainability — aligns with global discourse on algorithmic accountability. [S2]
• Emphasises public-private partnerships over pure state mandation — reflecting India's federal, pluralistic governance tradition. [S4]

Scientific / Technological

• India AI Mission invests in AI compute capacity (GPU clusters), open datasets, and foundational model research — reducing inference-time dependency on US hyperscalers. [S3]
• IndiaAI portal serves as the central knowledge and regulatory interface, operationalising the governance guidelines for developers. [S3]
• Sandboxes for innovation are built into the framework, enabling live experimentation without full regulatory compliance burdens. [S2]

Administrative

• Implementation rests with MeitY but cross-ministry coordination is critical (Health Ministry for health AI, Agriculture Ministry for agri-AI, etc.). [S3]
• Short-, medium-, and long-term action plan timelines provide a structured rollout path — but non-binding nature risks uneven adoption across sectors. [S2]
• Capacity-building for regulators, developers, and industry is a stated component — addressing India's shortage of AI governance expertise. [S4]

6. Recent Developments (Last 12–18 Months)

• March 2024: Cabinet approved the India AI Mission (₹10,371.92 crore, 5 years). [S3]
• November 5, 2025: MeitY unveiled India AI Governance Guidelines — seven principles, six pillars, non-binding action plan. [S2]
• December 2025: IIT Madras and India AI Mission announced a Global AI Conclave in Chennai to build an AI Safety Commons for the Global South. [S3]
• February 2025: India participated in the AI Action Summit, Paris — advanced its Global South positioning. [S4]
• February 19, 2026: AI Impact Summit, New Delhi — India formally hosts global discussion, presents "Third Way" model; attended by world leaders and technology experts. [S1]

7. Prelims Hooks

1. India's AI Governance Guidelines were released in November 2025 by MeitY. [S2]
2. The guidelines are non-binding (principle-based), not a statutory act. [S2]
3. India's AI governance motto: "Safe and Trusted AI for All". [S4]
4. The framework rests on seven guiding principles and six governance pillars. [S2]
5. The India AI Mission was approved by the Union Cabinet in March 2024 with an outlay of ₹10,371.92 crore over five years. [S3]
6. The "Third Way" contrasts with three existing models: EU (compliance-heavy), US (hands-off/market-led), and China (centralised state). [S1]
7. The AI Impact Summit 2026 was hosted by India in New Delhi in February 2026. [S1]
8. India's framework is administered via the IndiaAI portal under MeitY. [S3]
9. The framework's guiding philosophical principle is "Do No Harm", operationalised through innovation sandboxes. [S2]
10. India participated in the AI Action Summit in Paris in February 2025 before hosting its own in Delhi in 2026. [S4]
11. The framework explicitly targets inclusive AI adoption in health, education, and agriculture. [S4]
12. The concept of an AI Safety Commons for the Global South — shared datasets, benchmarks, governance resources — emerged from India-led deliberations at IIT Madras/India AI Mission conclave. [S3]
13. Amlan Mohanty is cited as one of the principal architects of the India AI Governance Guidelines framework. [S1]

8. Mains Relevance

GS Papers: Primarily GS-II (governance, India's foreign policy, multilateral institutions) and GS-III (S&T — developments in AI and their applications; indigenisation of technology).

Specific syllabus headings: - GS-II: Government policies and interventions for development; India and the changing global order; Bilateral, regional and global groupings affecting India's interests. - GS-III: Awareness in the fields of IT, space, computers, robotics, nano-technology, bio-technology; Challenges and achievements of India in science and technology.

Plausible Mains Questions:

1. "India's AI Governance Guidelines (2025) represent a 'Third Way' between regulatory excess and regulatory vacuum." Critically examine this claim and assess India's capacity to lead AI governance for the Global South. (GS-III / GS-II, 15 marks)

2. "Effective AI governance requires contextual adaptation, not copy-paste regulation." In light of India's non-binding, principle-based AI framework, discuss the trade-offs between regulatory flexibility and enforcement certainty. (GS-III, 10 marks)

3. Discuss how India's AI governance diplomacy complements its strategic interests in the Indo-Pacific and multilateral forums such as the G20 and OECD. (GS-II, 15 marks)

9. Related Topics to Study Next

10. Common Errors / Trap Areas

1. Confusing the Guidelines with legislation: The India AI Governance Guidelines (November 2025) are non-binding policy directives, not a statute. Do not confuse them with the EU AI Act (which is binding law with fines). India has no AI-specific Act as of mid-2026.

2. Wrong ministry attribution: AI governance guidelines are under MeitY, not NITI Aayog (which handles strategic policy) or the Ministry of Science & Technology. The India AI Mission is also operationalised through MeitY/IndiaAI.

3. Conflating AI Impact Summit (Delhi, 2026) with AI Action Summit (Paris, 2025): These are separate events. India participated in Paris (February 2025); India hosted in New Delhi (February 2026).

4. Misstating the number of principles: The framework has seven guiding principles and six governance pillars — these are distinct counts; do not merge them.

5. Assuming the "Third Way" is a formal treaty or international agreement: It is a governance positioning concept advanced by India diplomatically, not a binding multilateral instrument. The AI Safety Commons for the Global South is aspirational infrastructure, not yet institutionalised.

11. Sources

• [S1] A 'Third Way' for AI governance — The Hindu (February 19, 2026, article by Uma Kalkar, reproduced in user-supplied excerpt) — Tier 4 (Indian journalism / article content)
• [S2] India AI Governance Guidelines: Empowering Ethical and Responsible AI — IndiaAI.gov.in — https://indiaai.gov.in/article/india-ai-governance-guidelines-empowering-ethical-and-responsible-ai — Tier 1 (gov.in adjacent / official India AI portal under MeitY)
• [S3] MeitY Unveils India AI Governance Guidelines to Promote Safe and Responsible AI Adoption — NewsOnAir (All India Radio / DD News, Government of India) — https://www.newsonair.gov.in/meity-unveils-india-ai-governance-guidelines-to-promote-safe-and-responsible-ai-adoption — Tier 1 (Government of India broadcaster)
• [S4] India AI Governance Guidelines: Enabling Safe and Trusted AI Innovation — DD News — https://ddnews.gov.in/en/india-ai-governance-guidelines-enabling-safe-and-trusted-ai-innovation/ — Tier 1 (Government of India broadcaster)