Ministry of Electronics and Information Technology backs a hybrid licensing framework for AI training data.

The Ministry of Electronics and Information Technology (MEITY) has proposed a hybrid licensing model for AI training data, aimed at fostering innovation while ensuring fair compensation for creators. The framework introduces blanket licensing with revenue-linked royalties, coupled with minimum revenue thresholds to protect early-stage AI startups. A central royalties body will oversee transparent payments, promoting accountability and equitable growth in India’s AI ecosystem.

Why This Matters

India’s AI ecosystem faces a critical need for structured data governance:

• Innovation support: Ensures startups can access high-quality datasets without prohibitive costs
• Creator rights: Establishes a clear royalty system for contributors of AI training data
• Revenue-linked incentives: Aligns compensation with commercial success
• Transparency and trust: Central royalties body reduces disputes and encourages participation

The framework signals India’s commitment to responsible, scalable AI development while protecting diverse stakeholder interests.

Strategic Implications

With MEITY’s proposal, India is poised to:

• Accelerate AI adoption: Lowering barriers for startups to train high-quality models
• Strengthen intellectual property rights: Rewarding data creators fairly
• Promote ethical AI development: Transparent licensing aligns with global best practices
• Support sustainable AI growth: Revenue-linked royalties encourage long-term ecosystem development

This balanced approach positions India as a thought leader in AI governance.

MEITY’s hybrid licensing proposal represents a forward-looking framework for India’s AI future one that protects creators, fosters startups, and ensures scalable, responsible AI innovation. By combining fair compensation, transparency, and startup-friendly safeguards, India is creating an ecosystem where AI development and innovation can thrive without compromising ethical and legal standards.This isn’t just policy.It’s a strategic blueprint for India’s AI leadership.