New Delhi: Emphasising the importance of nurturing technological innovation without stifling it, Finance Minister Nirmala Sitharaman on Monday called for regulatory frameworks that support the responsible application of Artificial Intelligence (AI) for the common good.
Speaking at the launch of NITI Aayog’s report titled *‘AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth’, Sitharaman underscored that while regulation is necessary, it must not become a barrier to progress.
“We do not want regulation that literally wipes out technology itself. We want regulation because we want responsible application,” the Minister said.
Balanced Regulation for Rapidly Evolving Tech
Sitharaman described AI as “real-time, dynamic, and rapidly progressing”, stressing that regulation must evolve at the same pace. She drew attention to the need for ‘regulatory sandboxes’—safe testing environments that help strike a balance between fostering innovation and enforcing oversight.
“If technology is on a sprint, regulation has to be on the sprint too,” she remarked, noting that static or overreaching laws could derail technological advancement.
AI for Urban and Rural Transformation
The Finance Minister also pointed to AI’s potential to transform both urban planning and rural development. By enabling in-situ solutions, AI can provide services to citizens without forcing them to migrate from their communities.
“We must adopt AI-assisted technologies in every district. I want all districts to emerge as success stories of innovation and development,” she added.
Addressing Job Displacement & Human Capital Readiness
Responding to concerns about job losses due to automation and AI, Sitharaman dismissed the notion of a bleak employment future. Instead, she called for strategic upskilling initiatives to prepare India’s workforce for an AI-driven economy.
“AI adoption by industries is increasing, but there is a mismatch—industries aren’t getting AI-ready human resources,” she noted, urging collaborative efforts in AI-based upskilling programs.
India’s AI Momentum Under PM Modi’s Vision
The Minister credited Prime Minister Narendra Modi’s leadership for giving significant momentum to AI and digital innovation across India. She said that NITI Aayog has been playing a crucial role in shaping the country’s AI strategy, aligning it with economic and social goals.
Ashwini Vaishnaw: India a Front-Runner in AI
Also present at the event, Minister of Electronics and IT Ashwini Vaishnaw said that India is witnessing stable and inclusive growth powered by technology—with AI emerging as a transformative force across sectors.
“Just like the internet revolution, AI is going to fundamentally change how we live, work, learn, and deliver healthcare,” he said.
Vaishnaw also highlighted India’s capacity in AI hardware, noting that the country now has 38,000 GPUs, far exceeding its initial target of 10,000.
The Road Ahead
With India positioning itself as a global AI leader, the central message from the government is clear: AI should serve the people, drive productivity, and ensure inclusive growth—without losing sight of ethics, fairness, and responsible use.
The report by NITI Aayog offers a roadmap to harness AI’s full potential while keeping regulatory, educational, and economic systems aligned for long-term national development.
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