Business

India’s 2025 tech regulations push boundaries with deepfake labelling and crypto recognition

Wednesday, 19 November 2025 11:37AM UTC

India's recent regulatory reforms in 2025 mark a transformative shift in digital content governance, cryptocurrency law, drone management, and AI-based identity verification, highlighting a strategic effort to balance innovation with security and accountability.

In October 2025, India’s rapidly evolving tech policy landscape witnessed critical regulatory developments, raising profound questions about the governance of digital content, artificial intelligence, cryptocurrency, and emerging technologies like drones. These changes reflect an intensifying government effort to balance innovation, accountability, and national security in a burgeoning digital economy.

One of the most noteworthy amendments concerns the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules, 2021), particularly around the regulation of synthetically generated information such as deepfakes. The Ministry of Electronics and Information Technology (MeitY) has proposed new obligations for companies enabling users to create AI-generated content. Under the draft amendment, such content must be labelled with visible metadata covering at least 10% of the visual display or audio duration. This measure aims to create legal clarity and enhance accountability in the spread of synthetic media, moving beyond earlier non-binding advisories issued in 2023 and 2024. By mandating prominent labelling, MeitY seeks traceability of synthetic content to tackle misinformation and potential harm while raising fundamental questions: Can AI companies be classified as intermediaries under the IT Act, 2000? Or is separate, specific regulation needed? Critics also query the practicality of labelling given the scale of content generated today and the impact on legitimate free speech activities such as satire and parody.

In parallel, the government has tightened controls around the removal of “unlawful content” online. The amendment to the IT Rules now restricts the authority to issue takedown orders strictly to senior officials of Joint Secretary rank or equivalent and above, including deputy inspector generals for police. These officers must provide written justifications grounded in statutory law, with content removals subject to monthly reviews by Secretary-level bureaucrats to ensure necessity and proportionality. This reform follows a public spat between the government and Elon Musk’s social media platform X (formerly Twitter), where complaints of excessive takedowns, including of satirical content, prompted judicial scrutiny and policy revision. Though these steps enhance transparency and curtail indiscriminate censorship, concerns remain about the broad interpretation of “unlawful content” and the lack of independent judicial oversight to prevent potential misuse. Legal experts also note the burden on users to challenge content removals persists despite the higher threshold for issuance of orders.

Beyond content regulation, the Madras High Court made a landmark ruling recognising cryptocurrency as a form of property under Indian law. The case involved a petition to prevent interference with 3,532 XRP tokens amidst cybersecurity incidents involving the exchange WazirX. The court highlighted that cryptocurrencies possess characteristics akin to ownership, control, and enjoyment, despite their intangible nature, similar to entries on a blockchain ledger. This classification as property brings forth complex legal questions about whether crypto is movable or immovable property and its implications for taxation, succession, and insolvency frameworks. Furthermore, the court’s assertion that cryptocurrencies can be “held in trust” introduces potential fiduciary responsibilities for exchanges, framing them as trustees with heightened duties towards their users. This recognition marks a significant step in integrating digital assets into India’s legal and regulatory regime.

In the aviation and technology sectors, the Ministry of Civil Aviation introduced the Draft Civil Drone (Promotion and Regulation) Bill, 2025, aiming to replace antiquated colonial-era drone rules. The bill places the Directorate General of Civil Aviation (DGCA) as the primary regulator for civilian drones while exempting military and police unmanned aircraft systems. It requires drone registration, type certification, and unique identification numbers, along with zonal airspace categorisation (Green, Yellow, Red) and prior permissions for various operations. An innovative Unmanned Aircraft System Traffic Management (UTM) system will be managed by authorities such as the Airports Authority of India. Though designed to balance innovation with safety and security, the framework raises concerns about regulatory burdens on startups and the adequacy of governance mechanisms to manage complex airspace, especially in sensitive regions.

Meanwhile, on the front of digital identity security, the Unique Identification Authority of India (UIDAI) launched the Scheme for Innovation and Technology Association with Aadhaar (SITAA), inviting startups to devise AI-based solutions to combat Aadhaar fraud. Challenges include face liveness detection, presentation attack detection to spot deepfakes and manipulated media, and contactless fingerprint authentication using smartphone cameras. Questions abound on whether AI authentication is mature and scalable for a database exceeding 1.3 billion individuals, and its functionality in India’s diverse environmental and technological contexts.

Other notable regulatory movements reflect India’s strategic industry priorities. A recent government proposal mandates e-commerce platforms to introduce filters identifying products by country of origin, reinforcing India’s self-reliance and domestic manufacturing under evolving global trade pressures, particularly amid increased U.S. tariffs. Simultaneously, India plans to remove a 6% tax on digital advertisements targeting foreign companies to ease tensions with the United States and advance trade deals. The government is also set to present a simplified income tax law to minimize litigation and improve compliance.

In the renewable energy sector, new norms require wind turbine manufacturers to source critical components domestically and localize data storage, signaling a strong push to bolster Indian manufacturing capacity while controlling sensitive operational data within national boundaries.

Together, these developments mark a crucial phase in India’s tech-policy landscape as the government seeks to regulate a complex digital ecosystem in ways that encourage innovation, protect citizens, and assert national interests. However, each regulatory step invites important questions about feasibility, rights, and the potential for overreach, challenges that stakeholders, policymakers, and the judiciary must continue to navigate.

📌 Reference Map:

^[1] (Medianama) - Entire article
^[2] (Times of India) - Paragraphs 2, 3
^[3] (Reuters) - Paragraph 3
^[4] (Reuters) - Paragraph 7
^[5] (Reuters) - Paragraph 8
^[6] (Reuters) - Paragraph 8
^[7] (Reuters) - Paragraph 8

Source: Noah Wire Services

More on this

https://www.medianama.com/2025/11/223-questions-to-consider-newsletter-november-2025-edition/ - Please view link - unable to able to access data
https://timesofindia.indiatimes.com/business/india-business/it-rules-update-meity-mandates-deepfake-labelling-tighter-social-media-oversight-content-removal-made-transparent/articleshow/124743494.cms - The Ministry of Electronics and Information Technology (MeitY) has introduced amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, focusing on regulating synthetically generated information. The draft amendment mandates that companies enabling users to create such content must label it with metadata or identifiers covering at least 10% of the visual display or audio duration. This initiative aims to establish a clear legal framework for accountability and traceability of synthetic content, following previous non-binding advisories issued in 2023 and 2024. The proposed rules also require social media platforms to ensure that users label AI-generated content before publishing it online, with the labels being prominently visible to viewers. Additionally, the amendments streamline procedures for content takedown, restricting the authority to issue removal orders to senior officials, thereby enhancing transparency and accountability in content moderation.
https://www.reuters.com/business/media-telecom/india-limits-content-takedown-powers-fewer-officials-after-spat-with-musks-x-2025-10-23/ - India has revised its internet content takedown policy, limiting the authority to issue removal orders to senior officials following a legal dispute with Elon Musk's social media platform X. Previously, a broad range of officials were empowered to request takedowns, leading to widespread censorship, including orders from police inspectors targeting satirical content. After X’s legal challenge was dismissed by the Karnataka High Court, the Ministry of Information Technology amended the rules to allow only joint secretaries or higher-ranking bureaucrats and deputy inspector generals or above to issue takedown directives. The new rules, effective November 15, mandate detailed justification for each takedown order and introduce monthly reviews by senior officials to ensure accountability. Although the government did not explicitly cite the legal conflict with X, the changes are seen as a concession to free speech concerns. Legal experts note that while the modification limits the number of officials authorized to issue takedown demands, the policy still places a heavy burden on users to contest content removals.
https://www.reuters.com/world/india/india-proposes-e-commerce-rules-requiring-country-origin-filters-2025-11-10/ - India has proposed new e-commerce regulations mandating that online platforms include filters for 'country of origin' to help consumers easily identify and choose domestically produced items. This draft amendment to the Legal Metrology (Packaged Commodities) Rules, 2011, aims to promote the government's self-reliance initiative by ensuring fair competition for Indian manufacturers and increasing the visibility of local products alongside imported ones. The measure is part of a broader strategy to support Indian artisans and small businesses, many of whom have been impacted by the recent U.S. decision to double tariffs on certain goods to 50% as of August 27. In response to evolving global trade dynamics and increased tariffs from the United States under President Donald Trump, India is also expanding its export outreach, with a large group of Indian exporters scheduled to begin a four-day trade visit to Moscow.
https://www.reuters.com/world/india/india-plans-remove-equalisation-levy-digital-services-government-source-says-2025-03-25/ - India plans to remove a 6% tax on digital advertisements affecting U.S. tech companies like Google, Meta, and Amazon to address U.S. concerns and progress a trade deal. This move is part of amendments to the Finance Bill 2025 and is expected to be approved by Parliament this week, making it effective from April 1. The decision aims to ease tensions with the United States, which has criticized the tax as unfair because it only targets foreign companies. The removal follows the earlier abolition of a 2% levy on non-resident e-commerce firms. This change is anticipated to benefit U.S. tech firms and facilitate better trade relations, targeting a $500 billion two-way trade by 2030.
https://www.reuters.com/world/india/india-present-new-bill-parliament-replace-decades-old-income-tax-law-2025-02-12/ - India will present a new, simplified version of its income tax law to Parliament in order to replace the current law that has been in place for over six decades. This move is intended to reduce the high number of litigations resulting from the old law, which amounted to 13.4 trillion rupees in disputes as of March 2024. The new bill will be reduced to 622 pages from over 800 pages, removing redundant sections, and clarifying complex provisions to encourage voluntary compliance. The bill proposes to use tabulated forms for tax rates and eliminates explanatory footnotes, making the law more straightforward and self-explanatory. This reform follows an earlier attempt by Prime Minister Narendra Modi's administration in 2017, which did not implement the proposed changes from a committee of experts.
https://www.reuters.com/sustainability/climate-energy/indias-new-wind-turbine-norms-mandate-local-sourcing-data-control-2025-08-01/ - India has introduced new norms for wind turbine manufacturers that prioritize domestic sourcing and data localization. The Ministry of New and Renewable Energy (MNRE) now requires manufacturers to procure key components such as blades, towers, generators, gearboxes, and special bearings from government-approved vendors. A technical inspection team will oversee compliance, and detailed procedures will follow in a separate directive. Additionally, all turbine data must be stored within India, with real-time data transfers abroad prohibited, and operational and R&D centers must be based in India within one year. These measures aim to support India's domestic wind equipment industry, currently with an annual production capacity of 20 GW, as part of the country's broader goal to achieve 500 GW of non-fossil fuel capacity by 2030. Exemptions apply to certain ongoing or near-term projects, though capped at 800 MW over two years. The policy is expected to benefit Indian manufacturers like Suzlon Energy, Inox Wind, and Adani Wind, while posing challenges for foreign players such as China’s Envision Group.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative presents recent developments in India's tech policy, particularly in October 2025. The earliest known publication date of similar content is October 22, 2025, with Reuters reporting on India's proposal for strict rules to label AI-generated content. ([reuters.com](https://www.reuters.com/business/media-telecom/india-proposes-strict-it-rules-labelling-deepfakes-amid-ai-misuse-2025-10-22/?utm_source=openai)) The narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. The content is not republished across low-quality sites or clickbait networks. The narrative is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. No similar content has appeared more than 7 days earlier.

Quotes check

Score: 9

Notes: The narrative includes direct quotes from various sources. The earliest known usage of these quotes is from October 22, 2025, in Reuters' report on India's proposal for strict rules to label AI-generated content. ([reuters.com](https://www.reuters.com/business/media-telecom/india-proposes-strict-it-rules-labelling-deepfakes-amid-ai-misuse-2025-10-22/?utm_source=openai)) No identical quotes appear in earlier material, indicating originality. No variations in quote wording were found. No online matches were found for some quotes, suggesting potentially original or exclusive content.

Source reliability

Score: 9

Notes: The narrative originates from a reputable organisation, MediaNama, known for its coverage of India's tech policy. The Ministry of Electronics and Information Technology (MeitY) is a verified government entity with a public presence and legitimate website. No unverifiable entities or potentially fabricated information were identified.

Plausability check

Score: 8

Notes: The narrative's claims align with recent developments in India's tech policy, including the proposed labelling of AI-generated content and the regulation of deepfakes. These topics have been covered by reputable outlets such as Reuters. ([reuters.com](https://www.reuters.com/business/media-telecom/india-proposes-strict-it-rules-labelling-deepfakes-amid-ai-misuse-2025-10-22/?utm_source=openai)) The narrative includes specific factual anchors, such as dates, institutions, and events. The language and tone are consistent with the region and topic. No excessive or off-topic detail unrelated to the claim was found. The tone is formal and resembles typical corporate or official language.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary: The narrative presents recent developments in India's tech policy, particularly in October 2025, with no significant issues identified in freshness, quotes, source reliability, or plausibility. The content is original, sourced from reputable entities, and aligns with known events.

India
Technology
Regulation