The Ministry of Electronics and Information Technology (MeitY) has firmly rejected reports claiming that India plans to require smartphone manufacturers, including Apple and Samsung, to share proprietary source code or alter their software systems. The ministry emphasized that no such mandate is under consideration and clarified that current activities involve only routine consultations on cybersecurity standards.

Government Response to Media Reports

The clarification follows a Reuters report suggesting India was examining new smartphone security rules with significant implications for global technology companies. The Press Information Bureau (PIB) issued a statement on Sunday categorically denying these claims and labeling them as inaccurate.

Reported Industry Concerns

According to the Reuters report, the proposed security rules would have required manufacturers to:

• Share source code with government authorities
• Notify the government ahead of major software updates
• Comply with additional software-related requirements
• Allow long-term storage of system logs
• Provide government access to devices for security testing

Industry groups reportedly raised concerns that sharing source code could expose sensitive intellectual property and weaken user privacy protections. Global technology companies including Apple, Samsung, Xiaomi, and Google had allegedly expressed pushback against these proposals.

Ministry's Clarification on Ongoing Discussions

MeitY officials explained that ongoing discussions represent standard stakeholder engagement processes designed to understand technical challenges, compliance burdens, and international best practices followed by smartphone manufacturers. The ministry assured that all feedback from industry participants would be thoroughly evaluated before any policy direction is considered.

Industry Association Response

The Indian Cellular and Electronics Association (ICEA), representing mobile, consumer electronics, and telecom equipment manufacturers in India, provided additional context through Chairman Pankaj Mohindroo. He emphasized that these discussions are not new developments but have been ongoing for several years.

Mohindroo expressed confidence that consensus will be reached on the best way forward, describing such consultations as entirely normal government-industry engagement where technical and compliance questions are discussed, and industry responds with international practices and feasibility assessments.

India is actively examining policy measures to address AI governance challenges, including mandatory labelling of AI-generated content and establishing a remuneration framework for copyrighted material usage. MeitY Secretary S Krishnan outlined these initiatives during an interview with CNBC TV18, highlighting the government's comprehensive approach to balancing innovation with creator rights and public awareness.

AI Governance Framework and Content Labelling

The government has released AI governance guidelines developed by an expert group chaired by the Principal Scientific Adviser. According to Krishnan, this framework prioritizes utilizing existing legal provisions wherever possible, including current laws under the IT Act and criminal law that address misrepresentation and fake news.

Krishnan emphasized that citizens have a fundamental right to know whether content they consume is real or synthetic. He noted that technology companies should be capable of managing such labelling requirements, making the implementation technically feasible.

Cultural Context and Regulatory Approach

The MeitY Secretary highlighted the importance of cultural sensitivity in AI governance, noting that content acceptable in one society may not be appropriate in another. This cultural context consideration forms a crucial component of India's regulatory framework development.

The expert group has initially recommended voluntary measures for compliance. However, Krishnan stated that the government remains prepared to implement mandatory regulations where voluntary action proves insufficient.

Copyright and Creator Compensation Framework

A significant aspect of the policy discussion involves creator compensation for copyrighted material usage. The Department for Promotion of Industry and Internal Trade (DPIIT) has issued a working paper on this topic, which is currently open for public comments.

Media organizations have specifically informed the government that their curated content is being utilized without appropriate remuneration, threatening their long-term viability. Krishnan acknowledged the need to "strike a balance" between various stakeholder interests.

Implementation Challenges and Future Outlook

Addressing concerns from content creators about potential limitations on their ability to opt out or negotiate better compensation rates, Krishnan indicated that these issues would need careful monitoring as the framework develops. He emphasized that transitioning from an unregulated environment where content is used without compensation to a structured regulatory framework requires careful consideration of all stakeholder interests.

The government's approach reflects a commitment to ensuring that innovation in AI technology proceeds alongside appropriate protections for content creators and public awareness. The ongoing consultation process through the DPIIT working paper demonstrates the administration's intention to gather comprehensive stakeholder input before finalizing policy measures.