current affairs 2025

India’s Artificial Intelligence (AI) Policy & Ethical AI Governance (2025)

by Prince Luthra Sir (UPSC CSE AIR 577) · 26 February 2025

5️⃣0️⃣ India’s Artificial Intelligence (AI) Policy & Ethical AI Governance (2025) 🤖📜

🔹 Introduction

India is witnessing a rapid expansion of artificial intelligence (AI) in governance, healthcare, finance, and defense. With the National AI Mission and AI Policy Framework, the government is aiming to regulate ethical AI deployment, data privacy, and AI-driven automation while ensuring transparency.

However, concerns about AI bias, deepfakes, job displacement, and cybersecurity threats remain. India is collaborating with global AI leaders to create secure, ethical, and responsible AI ecosystems while fostering indigenous AI research and development.

🔹 Key Developments in India’s AI Policy & Governance (2025)

✅ National AI Policy & Ethical AI Framework 📜

Government mandates AI audits to ensure ethical algorithm deployment.
AI Ethics and Bias Mitigation Guidelines implemented in public sector AI systems.
AI regulatory framework integrated into financial services, policing, and healthcare.

✅ AI & Automation in Governance & Public Services 🏛️

AI-powered chatbots for digital governance & public grievance redressal.
Machine learning-driven predictive policing to prevent crime.
AI-enhanced legal research & judicial decision-making pilots introduced.

✅ Cybersecurity & AI Risk Management 🔐

AI-based threat detection deployed in national cybersecurity infrastructure.
Strict regulations on deepfake content & AI-generated misinformation.
Quantum AI research accelerating secure encryption models.

✅ AI & Job Market: Opportunities & Challenges 💼

Government-backed AI upskilling programs to prepare workforce for automation.
Ethical concerns around AI-induced job losses and wage suppression.
AI used in talent recruitment, resume screening, and employee productivity analytics.

✅ Challenges in AI Governance & Policy Implementation ⚠️

AI bias and algorithmic discrimination in automated decision-making.
Lack of standardized AI policies across different sectors.
Cybersecurity threats from AI-powered cyberattacks & deepfake technology.

📌 Advanced 3-Statement-Based MCQs on India’s AI Policy & Ethical AI Governance (2025)

1️⃣ Consider the following statements regarding India’s AI Policy Framework:

India’s National AI Policy includes mandatory algorithmic audits to ensure transparency and fairness in AI applications.
AI-driven automation in public services is aimed at replacing human bureaucrats entirely.
The government has introduced guidelines to regulate AI bias and discrimination in automated decision-making.

Which of the above statements is/are correct?
A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) 1, 2, and 3

Tap here for Answer

Answer: B) 1 and 3 only

Explanation:

AI audits are mandatory in public sector AI systems to ensure fairness and transparency (Correct).
AI is being used to enhance, not replace, human bureaucrats in governance (Incorrect).
Ethical AI guidelines have been introduced to mitigate bias and discrimination in AI-based decision-making (Correct).

2️⃣ Consider the following statements regarding AI’s role in governance and public services:

AI-powered predictive policing is being implemented in India to prevent crimes before they occur.
AI-based legal research tools are helping judges and lawyers analyze case laws efficiently.
India has banned AI-driven public grievance redressal systems due to privacy concerns.

Which of the above statements is/are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2, and 3

Tap here for Answer

Answer: A) 1 and 2 only

Explanation:

AI-based predictive policing helps identify high-crime areas and potential criminal activities before they escalate (Correct).
AI-powered legal research tools are improving efficiency in case law analysis (Correct).
AI-based public grievance redressal systems are being used widely, not banned (Incorrect).

3️⃣ Consider the following statements regarding AI regulation in India:

India has implemented strict rules to combat AI-generated deepfake content and misinformation.
Quantum AI research in India is focusing on advanced cybersecurity and encryption models.
The use of AI in financial services remains unregulated due to concerns over innovation restrictions.

Which of the above statements is/are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2, and 3

Tap here for Answer

Answer: A) 1 and 2 only

Explanation:

India has introduced AI regulations to prevent the spread of deepfake content and misinformation (Correct).
Quantum AI research is being used for secure encryption and cybersecurity applications (Correct).
AI in financial services is being regulated under RBI’s AI governance framework, not unregulated (Incorrect).

4️⃣ Consider the following statements regarding AI-driven employment trends in India:

AI-based recruitment platforms are being used to automate hiring processes.
AI is expected to create more jobs than it replaces by 2030, according to India’s workforce projections.
The government has implemented a nationwide AI tax on companies using automation to offset job losses.

Which of the above statements is/are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2, and 3

Tap here for Answer

Answer: A) 1 and 2 only

Explanation:

AI is widely used in recruitment to screen resumes, conduct interviews, and predict candidate suitability (Correct).
AI is expected to generate new job opportunities while replacing certain repetitive tasks (Correct).
India has not implemented an AI tax on companies, though discussions on automation regulations are ongoing (Incorrect).

5️⃣ Consider the following statements regarding AI’s impact on national security and cybersecurity:

AI-powered cybersecurity tools are being used to detect and prevent cyber threats in real-time.
India’s defense sector is integrating AI for autonomous drone surveillance and AI-driven battlefield analysis.
India has signed an AI defense cooperation agreement with NATO for sharing military AI research.

Which of the above statements is/are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2, and 3

Tap here for Answer

Answer: A) 1 and 2 only

Explanation:

AI-driven cybersecurity systems are being deployed to counter cyberattacks and threats (Correct).
India’s military is integrating AI for advanced surveillance, logistics, and combat analytics (Correct).
India has not signed an AI defense cooperation agreement with NATO but collaborates with various international partners on AI security (Incorrect).

🚀 Conclusion

India’s AI revolution is shaping governance, economy, and defense, but AI bias, cybersecurity risks, and workforce transitions remain major concerns. With strict AI regulations, ethical AI deployment, and global AI collaborations, India is positioning itself as a leader in responsible AI governance.