India will release a consultation paper on AI regulation next month, focusing on data safety and homegrown technology.

Union Minister Ashwini Vaishnaw said on Thursday that the government has decided how AI will be regulated going forward.

The paper will cover safety, cybersecurity, the benefits and harms of AI, and how to make sure every section of society gains from it.

It will also look at deepfakes (fake videos or audio made with AI), cyber threats and algorithmic harm, meaning unfair results from automated decisions.

MeitY Secretary S Krishnan warned on Thursday that privately owned AI models carry a risk.

Indian data could travel abroad, and those models could learn from whatever Indian users feed them.

Krishnan said India needs a judicious mix of approaches to protect its strategic autonomy, which means keeping control over its own technology choices.

Sources reports that the country is turning towards open-source and open-weight models, which can run inside India without sending data out.

Officials also want to build the full AI chain at home, from computing hardware to data, models and apps.

India has deployed more than 38,000 GPUs so far. These are the processors that train and run AI models.

IndiaAI Mission CEO Abhishek Singh told the sources in February that the country should have roughly 100,000 by the end of 2026.

Most of these chips still come from abroad through approved compute providers. That leaves India open to supply disruptions and high import costs.

The government approved Semicon 2.0 in July 2026 with an outlay of Rs 1,27,500 crore.

It aims to support Indian chip design, fabrication units and advanced packaging.

A PIB release puts approved manufacturing projects at 12 under the first tranche of the programme, with Rs 1.64 lakh crore committed.

The IndiaAI Mission began in March 2024 with a budget of Rs 10,371.92 crore over five years.

The paper has not been released yet, so the exact rules are still unknown. Details should become clear once it is published next month.

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