Nirmala Sitharaman Advocates for Regulations that Promote, Not Suppress, Technological Innovation
New Delhi, September 15, 2025 — Union Finance Minister Nirmala Sitharaman has underscored the importance of regulatory frameworks that encourage technological innovation, particularly in the field of Artificial Intelligence (AI), while ensuring responsible application. Addressing the audience during the launch of the report titled "AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth" in New Delhi, she highlighted the government’s commitment to embracing AI technologies without allowing regulatory measures to stifle progress.
“We do not want regulation that literally wipe out technology itself. We want regulations because we want a responsible application,” Sitharaman said, emphasizing that technology must be governed carefully to balance innovation with ethics and societal well-being.
The Finance Minister acknowledged AI as a rapidly evolving and dynamic technology. While it presents significant opportunities, she cautioned about inherent challenges, including its impact on employment and the potential for misuse that could affect society adversely. “The challenge is not just in jobs, but also in the ways these technologies can be misused, which can have repercussions for society,” she explained.
The report, prepared by NITI Aayog, provides a comprehensive outlook on AI’s transformative potential in accelerating economic growth. It highlights that although AI is expected to create many new roles, it will also lead to displacement, particularly in clerical, routine, and low-skill jobs. For India, this dual challenge involves equipping the workforce with advanced digital and AI competencies to seize emerging opportunities, while simultaneously reskilling and redeploying displaced workers to ensure they remain gainfully employed.
To translate AI-driven productivity gains and innovation into broad-based economic growth, the report stresses the importance of matching innovation with the creation of new markets. It points out the necessity for India to deepen domestic demand and enhance its participation in global value chains.
The document also calls for alignment between industrial and trade policies, especially as global regulatory environments evolve at a brisk pace. For example, the European Union’s AI Act introduces obligations affecting general-purpose and high-risk AI systems. Additionally, emerging climate-related trade measures such as carbon border adjustments are expected to influence market access conditions significantly.
Sitharaman’s remarks come at a time when India is actively positioning itself as a hub for frontier technologies and innovation. Alongside the release of the AI policy report, the government also unveiled the ‘NITI Frontier Tech Repository,’ a step toward consolidating and leveraging advanced technological resources.
By emphasizing ethical and responsible AI deployment coupled with supportive regulation, the government aims to create a conducive ecosystem that nurtures technological breakthroughs while addressing societal and economic impacts.
Photo Caption: Finance Minister Nirmala Sitharaman at the launch event of ‘Roadmap for AI for Viksit Bharat: An Opportunity for Accelerated Economic Growth’ and ‘NITI Frontier Tech Repository’, New Delhi, September 15, 2025. (Photo Credit: PTI)
Related Topics: Artificial Intelligence, Economy, Innovation, Employment, Regulatory Policy, NITI Aayog
The Hindu will continue to follow developments in AI innovation and policy shaping India’s digital future.
