India’s Third Way for AI Governance: UPSC Current Affairs

Description

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Picture Courtesy: THE HINDU

Context

India's "Third Way" AI governance model, balancing US innovation and EU rights, offers a practical blueprint for the Global South.

Read all about: Artificial Intelligence In Governance l AI Leadership in Global South

What is the "Third Way" in AI Governance?

The US Model (Market-Led)

Prioritises rapid innovation with minimal government intervention, allowing the private sector to self-regulate, which promotes growth but carries risks of market monopolization and potential societal harm.

The EU Model (Rights-Based)

The EU AI Act prioritizes safety and citizen rights through secure, comprehensive legislation. However, its heavy compliance burden may hinder innovation and be too expensive for developing nations.

India's "Third Way" (Adaptive & Developmental)

This hybrid model views AI as a "Kinetic Enabler" for national development, favouring an adaptive framework that combines growth with safety over a one-size-fits-all law.

	EU (Rights-Based)	USA (Market-Led)	India (The Third Way)
Primary Goal	Fundamental Rights & Safety	Innovation & Market Dominance	Development & Inclusion
Regulatory Approach	Precautionary (Risk-based)	Laissez-faire (Corrective)	Adaptive (Safety + Growth)
Data Policy	Strict Privacy (GDPR)	Corporate Ownership	Data as a Public Good (DPI)
Global Role	Regulatory Superpower	Technological Superpower	Voice of the Global South

What are the Key Pillars of India’s AI Framework?

Democratizing Compute Capacity & Infrastructure

Core Idea: India plans sovereign AI infrastructure to prevent Big Tech monopoly, treating AI as Digital Public Infrastructure (DPI), similar to UPI.
Case Study: The IndiaAI Mission, with a budget of ₹10,372 Crore, to establish a public-private partnership to create computing capacity exceeding 10,000 GPUs.

"AI for All" – Driving Social Inclusion

Core Idea: Leverage AI for population-scale solutions in critical sectors (agriculture, healthcare, education) to benefit all citizens.
Case Study:

Bhashini Platform: AI tool for real-time language translation, breaking down language barriers.
PM-Kisan Chatbot: AI-powered tool providing farmers with timely information and answers in native languages, boosting agricultural productivity.

Ensuring a "Safe and Trusted" Internet

Core Idea: Establish safety "guardrails" for accountability without creating innovation "roadblocks."
Policy Actions:

IT Rules: Require clear labeling/watermarking of AI-generated content and prompt takedown of harmful deepfakes.
Digital Personal Data Protection (DPDP) Act 2023: Ensures personal data used for AI training is processed with explicit user consent.

Strengthening International Collaboration

Core Idea: Position India as a Global South leader advocating for an equitable, non-hegemonic global AI framework.
Leadership Role: As Lead Chair of the Global Partnership on Artificial Intelligence (GPAI), India advocated equitable AI benefit distribution, reflected in the New Delhi Declaration.

What Challenges Does India's "Third Way" Model Faces?

Infrastructure Deficit

India lags behind the US and China in semiconductor manufacturing and high-end computing hardware, creating a dependency on foreign supply chains.

Enforcement Gaps

An over-reliance on "advisories" and guidelines without strong statutory backing can lead to poor compliance from large tech corporations (the "Agility Trap").

Human Capital Gap

Skill gap in the AI and data science fields, with demand for talent far outstripping supply (a 51% gap according to NASSCOM Report 2024).

Labor Displacement:

The current framework lacks a clear roadmap for social security and reskilling programs for workers in sectors vulnerable to AI-driven automation (e.g., BPO).

Way Forward

Strengthen Legal Frameworks

Move from advisory guidelines to a clear liability framework that holds AI developers accountable for harms caused by their models.

Boost Indigenous R&D

Increase public investment in R&D from the current 0.7% of GDP to at least 2%, strengthening homegrown innovation in foundational models and AI hardware, (Source: Economic Survey 2023-24)

Strengthen Global Governance

Use diplomatic influence (or soft power) to advocate for a UN-led international agency for AI, ensuring that governance standards are inclusive and globally accepted.

Conclusion

The "Third Way" presented by India is a crucial and realistic substitute for nations aiming to reconcile the potential benefits and risks associated with Artificial Intelligence.

Source: THE HINDU

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PRACTICE QUESTION

Q. "India’s approach to Artificial Intelligence governance represents a ‘Third Way’ distinct from the Western models." Critically analyze. 150 words

Frequently Asked Questions (FAQs)

India's "Third Way" is a hybrid governance model that sits between the US's market-led approach and the EU's strict regulatory approach. It focuses on "Adaptive Regulation," treating AI as a Digital Public Infrastructure (DPI) to ensure both innovation and social inclusion (AI for All).

The EU AI Act is a "rights-based" model focused on strict compliance and categorizing AI based on risk levels. While safe, it can be costly and stifle innovation. India’s approach is "adaptive," using existing laws and evolving guidelines to manage risks without halting technological growth.

The IndiaAI Mission is a government initiative with a budget of ₹10,372 Crore. It aims to build a comprehensive ecosystem for AI in India, including establishing a public-private computing grid (10,000+ GPUs), funding startups, and developing indigenous AI capabilities (Sovereign AI).