# PSA Office Proposes AI Data Safeguards in India

The PSA Office released a discussion paper in September 2026 proposing a risk-based framework for cross-border AI data interoperability focused on data sensitivity and use-case risk. This framework aims to establish coordinated regulatory mechanisms and enforceable standards to govern AI data exchange, particularly impacting Indian research institutions and firms involved in AI model development and data sharing. The proposal underscores the growing importance of standardized safeguards to facilitate secure and compliant AI data flows across borders.

- Indian government agencies including the PSA Office, National Data Governance Committee, Bureau of Indian Standards (BIS), and Indian Council of Medical Research (ICMR) are key stakeholders in shaping these regulatory standards.
- Procurement professionals should anticipate evolving compliance requirements for AI data handling and interoperability when engaging with Indian federal entities or collaborating on AI projects involving cross-border data.
- Vendors and contractors working with AI technologies in India may need to align their data governance practices with the proposed risk-based safeguards to qualify for government contracts or partnerships.
- This development signals increased government focus on data security and regulatory coordination, which could influence future procurement solicitations and contract terms related to AI and data services in India.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Regulatory Compliance
**Published:** September 18, 2026

### Government Entities
- PSA Office
- National Data Governance Committee
- Bureau of Indian Standards (BIS)
- Indian Council of Medical Research (ICMR)

### Sources
- [PSA Office Paper Proposes Risk-Based Safeguards for Cross-Border AI Data Use - The Policy Edge](https://www.policyedge.in/p/discussion-paper-proposes-risk-based-cross-border-data-access-for-indias-ai-ecosystem) - The Policy Edge