Regulations Must Support Innovation, Not Hinder It: Nirmala Sitharaman

Quick Summary

• Finance Minister Nirmala Sitharaman emphasized the need for regulations that encourage responsible technology innovation, especially in Artificial Intelligence (AI), during an event in New Delhi on September 15, 2025.
• She released the report titled ‘AI for Viksit Bharat: the Chance for Accelerated Economic Growth’, prepared by NITI Aayog.
• Sitharaman stated that regulations should not stifle technology but ensure its ethical and responsible submission across sectors.
• The report highlights AI’s dual impact: while it will create new opportunities and roles, it poses risks such as job displacement in clerical and low-skill areas.
• preparations involve reskilling displaced workers and building advanced digital capabilities too leverage new opportunities.
• India faces challenges including aligning industrial policies with global trade standards like Europe’s AI Act and emerging climate-related measures such as carbon border adjustments.

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Indian Opinion Analysis

The emphasis on fostering responsible technological innovation reflects India’s aspiration to be a global leader in AI while navigating potential socio-economic disruptions caused by automation. The challenges outlined-balancing job creation against displacement-are critical for ensuring inclusive growth amidst rapid technological conversion.

As India deepens domestic demand and integrates into global value chains, policy alignment with international rules like the EU’s AI Act will likely influence India’s competitive position globally. Additionally, addressing ethical considerations around artificial intelligence is crucial to mitigate societal risks while maintaining momentum toward economic innovation.

Rooted in long-term progress priorities, these initiatives indicate a forward-looking approach tailored for India’s advancement without compromising employment or ethics-a complex but essential balancing act.