AI launch advisory not applicable to startups, Rajeev Chandrasekhar clarifies after outcry

The Minister of Electronics and Information Technology sent a warning to intermediaries on March 1st, requesting that platforms get approval before introducing artificial intelligence goods in the nation.

The government advised AI platforms to obtain approval before releasing any AI products, however Minister of State for Electronics and Information Technology Rajeev Chandrasekhar stressed that this advice did not apply to startups in response to backlash from the sector.

Chandrasekhar said, "Recent advisory of @GoI_MeitY needs to be understood," in a post on X, the old Twitter. The advice is intended for significant platforms, and startups are exempt from the requirement that major platforms obtain approval from Meity."

Prior to this, Moneycontrol had revealed that the Ministry of Electronics and Information Technology had recommended platforms to label or include identifiers in AI-generated content so that the source of any disinformation or deepfake could be identified. The recommendation was released on March 1. Platforms have been requested to provide the ministry with an action taken/status report in a timeframe of fifteen days.

Numerous startup executives in the AI sector criticized the guidance once it was released. Confusing CEO of AI Aravind Srinivas called the decision a "bad move". "If you know the Indian government, you know this will a huge drag," stated Bindu Reddy, CEO of Abacus AI. There will be twelve hoops to clear and all forms that need to be filled out in triplicate through! This is the way monopolies prosper, nations deteriorate, and consumers suffer."
 

"I was such a fool thinking I will work bringing GenAI to Indian Agriculture from SF," Pratik Desai of Kissan AI stated. We were thrilled to be developing a multimodal, low-cost pest and disease model. After working four years straight to bring AI to this sector in India, this is awful and demoralizing."

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