India’s technology sector is pushing back against rigid government proposals to label AI-generated content, warning that overly prescriptive rules could slow innovation and burden smaller firms, The Economic Times reported.
The Ministry of Electronics and Information Technology (MeitY) has proposed amendments to the Information Technology Intermediary Rules and the Digital Media Ethics Code that would require clear labeling of AI-generated visuals and audio. Under the draft, visuals must include a visible marker covering at least 10% of the display area, while audio must feature a disclaimer for the first 10% of its duration.
Industry groups including Nasscom and BSA | The Software Alliance urged MeitY to take a more flexible, globally harmonized approach. They argue that the rules should target harmful or misleading synthetic media rather than all algorithmically altered content. Nasscom also raised concerns about technical feasibility, noting that one-size-fits-all requirements could disproportionately affect startups and small businesses with limited resources.
BSA, which represents major global software companies, warned that visible watermarks and labels could be easily removed and make Indian content less competitive globally. Instead, the group recommended machine-readable markers aligned with international standards such as the Coalition for Content Provenance and Authenticity (C2PA).
The proposed rules would also tighten due diligence obligations for major social media platforms such as YouTube, Meta, X (formerly Twitter), and ShareChat. Platforms would be required to verify user declarations on synthetic content and clearly mark AI-generated material—or risk losing “safe harbour” protections from liability.
Industry executives told The Economic Times that the 10% watermark requirement could be technically impractical for AI models and that the rules might lead to more frequent content moderation errors. The public consultation on the proposal closes November 13, with implementation timelines yet to be set.
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