India explores balanced approach to cross-border AI data flows

A discussion paper from the Principal Scientific Adviser has put forward a framework for managing artificial intelligence data flows across international borders while protecting India's strategic interests.

The proposal suggests a tiered approach: data classified as strategically sensitive would remain within India, while other datasets could move across borders under safeguards calibrated to their sensitivity and risk of personal identification. This middle-ground approach aims to balance India's need for data sovereignty against the demands of global AI research and commerce.

The framework addresses a key tension in AI governance—the need to leverage international collaboration and data resources while preventing the outflow of sensitive national information. By categorising data according to risk levels rather than imposing blanket restrictions, the proposal seeks to enable India's AI ecosystem to participate in global innovation networks without compromising security or privacy concerns.

This discussion paper signals India's effort to develop a nuanced data governance model suitable for AI applications, moving beyond binary choices between isolation and unrestricted flows.