On the economic front, Vaishnaw defended the government’s investment-led recovery from the pandemic
The Indian government is working on a comprehensive digital regulation framework aimed at promoting innovation in the rapidly growing tech sector while safeguarding citizens from potential risks, Union Minister for Railways, Electronics, and Information Technology Ashwini Vaishnaw said on Friday.
Speaking at the CFO Awards, Vaishnaw emphasized that India is in a unique position to create a “smart framework” that balances innovation with regulation. He explained that the proposed regulations will include broad, cross-sector laws, such as the upcoming Data Protection Act, as well as sector-specific legislation where needed. The framework is being designed to address the wide-ranging impacts of new technologies like artificial intelligence (AI), which have raised concerns over deepfakes, content moderation, and cybersecurity threats. “It is important to create a good balance between innovation and regulation,” Vaishnaw stated.
He highlighted that the government is also working on a UPI-style model for cybersecurity. This initiative is intended to provide resources to small and medium enterprises (MSMEs) and other organisations struggling to secure their systems amidst rising cyber threats. As cybersecurity issues increase in frequency, the government is looking to build infrastructure that can help protect these entities.
“The institutions that have been built over centuries are being negatively impacted by social media, deepfakes, and AI-generated data, which is completely out of sync with reality. So, a lot more needs to be done on that front,” he said.
Vaishnaw underscored the need for a tiered approach to regulation, suggesting that different types of content and technology will require varying levels of oversight. He outlined a system that begins with self-regulation for certain areas, moderate regulation for others, and strict enforcement for select high-risk activities. “For a very few select activities, it has to be a big hammer that has to be put,” he explained. The government has been advising AI companies to avoid harmful activities, such as spreading misinformation or creating deepfakes, through their technologies.
On the economic front, Vaishnaw defended the government’s investment-led recovery from the pandemic. He credited this strategy for helping India remain the fastest-growing major economy in recent years. He rejected calls for printing money to boost consumption, saying it could have led to inflation, similar to what has been observed in some richer countries.
The minister pointed to the government’s increase in capital expenditure, from Rs 3.4 lakh crore in FY20 to Rs 11.2 lakh crore in the current fiscal, as a key driver of growth. He noted that India’s economic structure is capable of producing an investment multiplier of 3.6, with 60% of the benefits flowing to MSMEs.
Looking ahead, Vaishnaw predicted that real GDP growth of 6-8% over the next four to five years is achievable, alongside moderate inflation in the range of 4-6%.
The government’s upcoming digital regulation framework is seen as a critical step in balancing technological innovation with the need for security, ensuring that the country can harness the benefits of emerging technologies while protecting its citizens from potential risks.
