{"id":356470,"date":"2026-02-20T10:10:23","date_gmt":"2026-02-20T04:40:23","guid":{"rendered":"https:\/\/forumias.com\/blog\/?page_id=356470"},"modified":"2026-02-20T10:10:23","modified_gmt":"2026-02-20T04:40:23","slug":"answered-examine-indias-third-way-for-ai-governance-as-an-alternative-to-the-market-led-and-regulation-heavy-global-models-evaluate-how-this-development-centric-approach","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-examine-indias-third-way-for-ai-governance-as-an-alternative-to-the-market-led-and-regulation-heavy-global-models-evaluate-how-this-development-centric-approach\/","title":{"rendered":"[Answered] Examine India\u2019s \u2018Third Way\u2019 for AI governance as an alternative to the market-led and regulation-heavy global models. Evaluate how this development-centric approach balances technological sovereignty with the institutional needs of the Global South."},"content":{"rendered":"

Introduction
\n<\/strong><\/h2>\n

According to the IMF (2024), AI could affect 40% of global jobs<\/strong>, while UNCTAD flags concentration of AI compute within a few firms<\/strong>. Amid this asymmetry, India\u2019s \u2018Third Way\u2019 proposes inclusive, sovereignty-driven AI governance.<\/strong><\/p>\n

Moving Beyond Binary Models: Market Fundamentalism vs Regulatory Maximalism<\/strong><\/h2>\n
    \n
  1. Market-Led Model (U.S. Approach): Innovation First: <\/strong>The U.S. relies largely on ex-post regulation and private-sector leadership (e.g., OpenAI, Google DeepMind).<\/strong> While this accelerates frontier innovation<\/strong>, it risks regulatory lag, algorithmic opacity<\/strong>, and labour displacement without social safeguards.<\/strong><\/li>\n
  2. Compliance-Heavy Regime (EU AI Act): Precautionary Governance<\/strong>: The European Union\u2019s European Union AI Act<\/strong> adopts a risk-tier classification (minimal to unacceptable risk),<\/strong> embedding ex-ante conformity assessments<\/strong>. Though rights-protective, its high compliance costs <\/strong>may burden developing economies with limited regulatory capacity.<\/strong><\/li>\n
  3. State-Centric Model (China): Centralised Algorithmic Control<\/strong>: China\u2019s approach integrates AI within state planning and cybersecurity laws<\/strong>, prioritising data localisation and algorithm registration.<\/strong> While ensuring control,<\/strong> it may constrain innovation pluralism and global interoperability<\/strong>. India\u2019s Third Way emerges as a synthesis\u2014innovation-enabling yet norm-anchored<\/strong>, avoiding both laissez-faire excess and regulatory overreach.<\/strong><\/li>\n<\/ol>\n

    Development-Centric Governance: AI as Digital Public Infrastructure (DPI)<\/strong><\/h2>\n
      \n
    1. AI for Public Goods Delivery: <\/strong>India conceptualises AI as an extension of Digital Public Infrastructure (DPI)<\/strong>, akin to Aadhaar and UPI.<\/strong> Through the IndiaAI Mission and sectoral guidelines<\/strong>, AI deployment is targeted at healthcare diagnostics, agricultural advisories, and education personalisation<\/strong>\u2014aligning with SDG commitments.<\/li>\n
    2. Sector-Specific, Agile Regulation: <\/strong>Instead of omnibus legislation<\/strong>, India works through existing frameworks such as the Digital Personal Data Protection Act, 2023<\/strong> and amendments to IT Rules mandating<\/strong> AI-generated content labelling<\/strong>. This reflects adaptive governance rather than static codification.<\/strong><\/li>\n
    3. Sandboxes and Voluntary Codes: <\/strong>Regulatory sandboxes encourage experimentation<\/strong> while embedding accountable-by-design principles.<\/strong> This mirrors the RBI fintech sandbox model, balancing innovation and oversight.<\/li>\n<\/ol>\n

      Technological Sovereignty: Strategic Autonomy in the Algorithmic Age<\/strong><\/h2>\n
        \n
      1. Data Sovereignty and Indigenous Models: <\/strong>India promotes indigenous large language models such as BharatGen <\/strong>to preserve linguistic and cultural intelligence<\/strong>. This reduces algorithmic dependency and mitigates vendor lock-in risks flagged by the World Bank\u2019s Digital Development Report (2023).<\/strong><\/li>\n
      2. Compute Infrastructure Democratization: <\/strong>Through subsidised GPU access under the IndiaAI Mission,<\/strong> India attempts to counter compute colonialism,<\/strong> where AI power is concentrated among a handful of Global North corporations.<\/strong><\/li>\n
      3. Public-Private Partnerships (PPP Model): <\/strong>Unlike statist centralisation<\/strong>, India leverages PPPs across the AI value chain<\/strong>\u2014research labs, startups, and academia<\/strong>\u2014enhancing institutional scalability without fiscal overextension.<\/strong><\/li>\n<\/ol>\n

        Institutional Relevance for the Global South<\/strong><\/h2>\n
          \n
        1. Context-Sensitive Governance: <\/strong>Many Global South states<\/strong> lack regulatory bandwidth<\/strong> for 400-page statutes like the EU AI Act<\/strong>. India\u2019s principle-based, modular framework<\/strong>\u2014Trust, Fairness, Human Oversight<\/strong>\u2014offers replicability without heavy compliance infrastructure<\/strong>.<\/li>\n
        2. Capacity-Building Diplomacy: <\/strong>By hosting AI Impact Summits and advocating shared safety<\/strong> evaluation frameworks, India positions itself as a convenor among middle powers<\/strong>\u2014bridging innovation asymmetries identified by UNDP.<\/strong><\/li>\n
        3. Inclusion and Multilingual AI: <\/strong>Initiatives like Bhashini address linguistic marginalisation<\/strong>, making AI diffusion socially embedded rather than elite-centric<\/strong>\u2014a crucial requirement for equitable technological transformation.<\/strong><\/li>\n<\/ol>\n

          Critical Gaps and Normative Challenges<\/strong><\/h2>\n
            \n
          1. Labour Displacement and Just Transition: <\/strong>The ILO warns of automation-led employment<\/strong> disruption. India\u2019s framework must integrate skilling, social protection, and algorithmic impact assessments<\/strong> to avoid developmental dualism.<\/strong><\/li>\n
          2. Accountability and Enforcement Deficit: <\/strong>Voluntary codes may lack teeth without statutory backing. Ensuring algorithmic auditability and grievance redress mechanisms remains vital.<\/strong><\/li>\n
          3. Global Coordination Imperative: <\/strong>AI harms transcend borders; hence India\u2019s sovereignty model must operate within multilateral norms to prevent regulatory fragmentation.<\/li>\n<\/ol>\n

            Conclusion<\/strong><\/h2>\n

            As President Dr. A.P.J. Abdul Kalam emphasised in India 2020, technological power must serve national development<\/strong>. India\u2019s \u2018Third Way\u2019 embodies this ethos\u2014strategic autonomy fused with inclusive, globally responsible innovation.<\/p>\n","protected":false},"excerpt":{"rendered":"

            Introduction According to the IMF (2024), AI could affect 40% of global jobs, while UNCTAD flags concentration of AI compute within a few firms. Amid this asymmetry, India\u2019s \u2018Third Way\u2019 proposes inclusive, sovereignty-driven AI governance. Moving Beyond Binary Models: Market Fundamentalism vs Regulatory Maximalism Market-Led Model (U.S. Approach): Innovation First: The U.S. relies largely on… Continue reading [Answered] Examine India\u2019s \u2018Third Way\u2019 for AI governance as an alternative to the market-led and regulation-heavy global models. Evaluate how this development-centric approach balances technological sovereignty with the institutional needs of the Global South.<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-356470","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/356470","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=356470"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/356470\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=356470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}