FROM DIGITAL INDIA TO ETHICAL INDIA: INSTITUTIONAL DESIGNS FOR RESPONSIBLE AI IN GOVERNANCE

Abstract

This paper examines India’s transition from digital transformation to ethical AI governance, analyzing the institutional frameworks and policy mechanisms developed to ensure responsible AI deployment in public administration. Through a comprehensive analysis of recent policy developments, including the 2025 AI Governance Guidelines Report, IndiaAI Mission, and sectoral regulatory frameworks, this study explores how India is balancing innovation with ethical considerations. The research reveals that India has adopted a multi-stakeholder, lifecycle-based approach to AI governance, emphasizing transparency, accountability, fairness, and privacy as core principles. Key findings indicate that while India’s AI adoption rate has reached 59% among enterprises—the highest globally—significant challenges remain in implementing ethical frameworks consistently across sectors. The paper identifies three critical institutional designs: techno-legal governance frameworks combining regulatory and technical tools, competency-based capacity building for civil servants, and sector-specific regulatory mechanisms. The study concludes that India’s approach offers a unique model for developing nations, demonstrating how ethical AI governance can be achieved through digital-by-design frameworks while maintaining innovation momentum. However, success depends on addressing implementation gaps, particularly in risk assessment capabilities, cross-sectoral coordination, and ensuring inclusive access to AI benefits across India’s diverse socio-economic landscape.