Whalesbook
Consultation Deadline Extended for AI Content Rules
The Ministry of Electronics and Information Technology (MeitY) has once again extended the public consultation period for its proposed amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. Stakeholders now have until May 7, 2026, to submit feedback. This second extension highlights the detailed review and potential complexity of the proposed changes. These changes, first proposed in March 2026, aim to increase platform responsibility and introduce stronger oversight for digital media.
Mandating Clear Labels for AI Content
A key part of the proposed amendments is introducing stricter rules for AI-generated content. Rule 3(3)(a)(ii) is being revised to require AI-generated or altered content to be clearly and continuously labeled in visual media. This aims to help users tell real content apart from AI creations, helping fight misinformation and deepfakes. The rules define this content as any audio or visual material artificially created or altered by computers that could appear real. The government has also shortened deadlines for removing illegal content, in some cases to just two to three hours.
India Aligns with Global AI Regulation Trends
India's growing focus on labeling AI content matches a global trend towards regulating AI creations. The European Union's AI Act, starting August 2026, requires machine-readable labels and user disclosures for AI content. China also requires clear labels and metadata. The U.S. is pursuing a patchwork of state rules and proposed national laws on transparency and digital replicas. India's strategy combines visible labeling with required metadata and fast takedown rules, aiming for a broad framework for AI media.
Digital Economy Context and Sector Impacts
These new rules come as India's digital economy grows rapidly. The digital media market was worth about $29 billion in 2025 and is expected to exceed $111 billion by 2034, growing at a 15.62% annual rate. The digital ad market is forecast to nearly double to $22 billion by 2030, driven by more internet and smartphone users. However, India's IT sector is adapting to changes from AI. While AI offers new business chances, analysts predict it could lower prices for some services, affecting existing income. The IT Rules could also create a 'regulatory drag', raising operating costs for digital platforms and potentially reducing the value of fast-growing companies.
Compliance Challenges and Strategic Risks
The proposed amendments present major challenges in following the rules for platforms and digital content creators. Requiring always-visible labels for AI content and meeting short takedown deadlines will need large investments in technology and changes to operations. Implementing these rules could be very hard for smaller platforms and creators, potentially slowing innovation and new market entrants. Furthermore, the requirement for platforms to strictly comply with all government advisories makes government advice mandatory, increasing government control over digital platforms. This greater government supervision, presented as needed for 'an Open, Safe & Trusted Internet,' sparks worries about too much censorship and affecting free speech. The rules are changing fast globally. India isn't creating a separate AI law but is adding AI rules into existing laws like the IT Rules, showing a commitment to greater digital responsibility. The extension of the consultation period suggests the government is asking for detailed input before completing these important rules.