The Ministry of Electronics and Information Technology launched India first comprehensive AI regulatory sandbox on Wednesday, allowing startups and enterprises to test artificial intelligence applications under supervised regulatory conditions for up to 18 months before full commercial deployment. The sandbox covers AI applications in healthcare, financial services, agriculture, and education, with a dedicated fast-track clearance window for startups with annual revenues under Rs 100 crore to reduce compliance barriers for smaller innovators.
Minister Ashwini Vaishnaw said the sandbox approach will allow India to foster responsible AI innovation while building the evidence base needed for appropriate permanent regulation. Over 340 startups and enterprises have already applied for sandbox participation in the first six weeks. The initiative is part of India National AI Mission framework and will be overseen by a multi-stakeholder AI Governance Board that includes academics, industry representatives, and civil society organisations to ensure diverse perspectives inform the emerging regulatory framework.