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India Poised to Offer a Third Way in Global AI Governance, Says New ASPI Report

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As artificial intelligence reshapes geopolitics and global markets, a new report from the Asia Society Policy Institute (ASPI) argues that India could emerge as a leading voice in responsible AI governance — one that offers an alternative to the competing approaches of the United States and China.

The paper, “India’s Path to AI Leadership: An Alternative AI Governance to U.S.-China Competition” by Dr. Arun Teja Polcumpally, JSW Science and Technology Fellow at ASPI Delhi, calls for a governance model rooted in diversity, inclusion, and enforceable techno-legal solutions. According to Dr. Polcumpally, this approach could set a global precedent for democratic and context-sensitive AI development, offering a viable “third path” in a landscape currently dominated by Washington and Beijing.


Learning from U.S. and China’s Shortcomings

Dr. Polcumpally notes that while both the United States and China have made significant strides in AI policy, their approaches reveal critical gaps.“The U.S.’ focus is on risk assessment, risk mitigation, and enabling market conditions,” he writes. “The U.S. approach does not prioritize sustainable development, privacy protection, or governance across the AI life cycle.”

China, meanwhile, is positioning itself as a strategic partner for AI development in the Global South and aligns with many international safety standards — but still fails to adequately protect human rights or implement governance throughout the AI lifecycle.

These limitations, the report argues, create an opening for India to step forward with a governance model that complements the technological leadership of the U.S. and China while addressing the ethical and societal dimensions they overlook.


A Global Stage in 2026

India’s opportunity to redefine the AI governance landscape will take center stage in 2026, when it hosts the Global AI Impact Summit — a landmark event focused on advancing responsible AI adoption through global collaboration. Dr. Polcumpally sees the summit as the ideal moment for India to present a “plug-and-play” governance blueprint that other nations can easily adapt.

“By offering a plug-and-play governance blueprint, India can empower other nations to adopt AI responsibly,” he writes. “This would complement the technical strengths of the U.S. and China with governance innovation rooted in diversity and inclusion, enabling context-sensitive AI development.”


Principles for a New AI Framework

At the heart of Dr. Polcumpally’s proposal is a governance framework built on three foundational pillars:

  • Promoting diversity and inclusion throughout AI development to ensure equitable participation and outcomes.

  • Expanding AI diffusion across developing countries to prevent widening technological divides.

  • Embedding legal and ethical safeguards directly into AI systems, aligning them with legislative requirements, judicial precedents, and international norms.


“While diversity, inclusion, and equitable access are crucial,” he emphasizes, “a governance framework must also be implementable across varied national contexts.” The techno-legal approach, he argues, ensures that AI systems are inherently designed to uphold laws, foster public trust, and enable governance at scale.

As nations grapple with how to balance innovation, safety, and ethics in AI, India’s potential role as a bridge-builder between technology and governance could prove transformative.

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