AI Governance and Trust: How India Is Shaping the Future of Responsible Technology

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As artificial intelligence rapidly reshapes economies, governance frameworks are emerging as a defining factor for sustainable technological growth. In India, where digital systems serve more than 1.4 billion citizens, the challenge is especially complex. According to Ashish Aggarwal, Vice President of Public Policy at Nasscom, trust will be the cornerstone of the technology industry’s future, and India is consciously adopting a calibrated, technology-first approach to AI governance.

Speaking to PTI in New Delhi, Aggarwal explained that India’s diversity and scale demand a careful balance between innovation and protection. With AI increasingly influencing finance, communication, governance, and everyday digital interactions, the risks of misuse—such as deepfakes, digital frauds, and identity manipulation—have grown sharply. Addressing these risks without stifling innovation has become a central policy objective.

Trust as the Foundation of the Digital Economy

Aggarwal emphasised that trust is no longer optional in a digital-first economy. As technologies become more embedded in citizens’ daily lives, public confidence determines whether these tools are adopted or resisted. The surge in deepfakes, financial scams, and so-called digital arrests has heightened public anxiety and exposed vulnerabilities in existing systems.

India’s experience shows that technological progress without safeguards can quickly erode confidence. Aggarwal warned that if citizens feel unsafe or exploited, the credibility of the entire digital ecosystem suffers. “Any future success of the technology industry must sit on a strong base of trust,” he said, highlighting that governance is as much an economic necessity as it is a social one.

Moving Beyond Reactive Regulation

A key theme in India’s evolving AI governance strategy is the shift away from reactive regulation. Traditional regulatory approaches often respond to harm after it has already occurred, which is increasingly ineffective in fast-moving technology environments. Instead, policymakers and industry leaders are now focusing on what Aggarwal described as “technology-led guardrails.”

These guardrails aim to prevent harm at the design and deployment stage rather than relying solely on legal penalties after damage is done. This represents a fundamental change in thinking: instead of regulations chasing misuse, technology itself becomes the first line of defence.

AI as Both Risk and Remedy

While AI introduces new forms of risk, Aggarwal argued that it is also one of the most powerful tools available to mitigate those risks. Advanced AI systems can detect patterns of fraud, identify manipulated media, and flag suspicious behaviour at a scale impossible for manual oversight.

“Technology itself is a great enabler,” Aggarwal noted, adding that AI can be deployed to track, minimise, and prevent many of the harms arising from its misuse. As newer AI models and applications emerge, the ability to use technology proactively will be critical in staying ahead of bad actors.

This perspective reframes the AI debate. Instead of viewing regulation and innovation as opposing forces, India is increasingly positioning them as complementary—where smarter technology enables safer innovation.

A ‘Whole-of-Government’ Approach

Aggarwal also highlighted recent policy developments that demonstrate India’s coordinated approach to AI governance. These include the Ministry of Electronics and Information Technology’s proposed AI framework and the Reserve Bank of India’s report outlining a comprehensive strategy to drive AI adoption in the financial sector.

He praised what he described as a “whole-of-government” approach, where multiple ministries and regulators align their efforts rather than working in silos. This coordination is essential because AI’s impact cuts across sectors such as banking, healthcare, education, and public administration.

Equally important is the emphasis on consultation. Ongoing dialogue with industry, technologists, and other stakeholders helps ensure that governance frameworks remain practical, adaptive, and grounded in real-world challenges.

Digital Public Infrastructure as a Model

India’s Digital Public Infrastructure (DPI) stack stands out as a practical example of technology-led guardrails in action. Platforms such as Aadhaar for digital identity, UPI for payments, and the nationwide telecom network have already transformed service delivery at scale.

Building on these layers, India is now focusing on creating a robust and scalable consent framework. Such a system would allow citizens to meaningfully control how their data is shared and used. According to Aggarwal, effective consent mechanisms are among the strongest safeguards against misuse.

“When consent becomes real and usable for citizens, it naturally acts as a guardrail,” he explained. In the context of AI, transparent data usage and clear accountability are critical for maintaining public trust.

Tackling Emerging Harms

The rapid evolution of AI models brings new and unpredictable risks. Deepfakes are becoming more convincing, financial scams more sophisticated, and identity fraud more difficult to detect. Aggarwal acknowledged that governance frameworks must continuously evolve to address these emerging threats.

Rather than relying solely on restrictive laws, India’s strategy focuses on using technology to detect and prevent harm early. This includes deploying AI-driven monitoring systems, strengthening digital literacy, and integrating safeguards directly into platforms and services.

The Road Ahead

India’s approach to AI governance reflects a broader vision for responsible innovation. By combining policy foresight, industry collaboration, and technology-driven safeguards, the country aims to create an ecosystem where innovation thrives without compromising citizen safety.

As AI becomes a defining force in the global economy, nations that successfully balance trust and innovation will set the pace. Nasscom’s message is clear: India’s technological future will not be built on unchecked speed, but on systems that are transparent, inclusive, and worthy of public trust. In the long run, trust will not just support innovation—it will determine its success.