India Strengthens AI Regulation: New Rules Target Deepfakes and Protect Users
July 29, 2026
The IT (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2026 strengthen intermediaries’ due diligence for synthetically generated content and deepfakes, requiring measures to prevent unlawful AI content, clear labeling and traceable metadata for permissible AI-generated content, and heightened user awareness of legal consequences.
Intermediaries risk losing their Section 79 exemption and becoming liable under applicable laws if they do not comply with the 2021 IT Rules.
The rules mandate automated tools or technical barriers to stop users from creating, generating, modifying, or disseminating synthetically generated content that violates laws, with potential loss of safe harbor for non-compliant platforms.
A government briefing in Lok Sabha, supported by an accompanying ANI feed, outlines the core policy clarifications and the 2026 amendments to intermediary rules.
The government emphasizes a consultative, stakeholder-engaged approach to AI regulation, with any new measures processed through established procedures.
Parliamentary proceedings reflect ongoing policy consultation on AI regulation, signaling a preference for a consultative process and adherence to standard legislative procedures for future rules.
Across discussions, the government continues to engage stakeholders on legal, policy, and institutional issues related to AI, with future regulatory measures to follow established processes.
The government notes that the 2026 amendment rules were notified on February 10 and came into force on February 20, reinforcing regulatory expectations for AI-enabled services.
The government clarifies that whether a generative AI system qualifies as an intermediary depends on the service’s nature and functions, with the IT Act applying technology-neutrally to intermediaries and computer resources.
Intermediary status and Section 79 exemption hinge on service characteristics, as explained by Minister Jitin Prasada in Parliament.
The clarification addresses concerns about distinguishing AI systems that merely facilitate third-party content from those that independently generate content.
Summary based on 8 sources
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Sources

Outlook India • Jul 29, 2026
Generative AI Safe Harbour Status Dependent On Function: Government
Economic Times • Jul 29, 2026
Government says eligibility of generative AI services for safe harbour depends on nature of service
Economic Times • Jul 29, 2026
Government says eligibility of generative AI services for safe harbour depends on nature of service
Asianet Newsable • Jul 29, 2026
Govt clarifies generative AI's position under the IT Act in Lok Sabha