The Ministry of Electronics and IT said in a long written response on Wednesday that it has assessed the ethical concerns and risks of bias and discrimination associated with AI. The ministry said it’s implementing necessary policies and infrastructure measures to cultivate a robust AI sector in the country, but does not intend to introduce legislation to regulate its growth.

The expansion of AI will have a “kinetic effect” on entrepreneurship and business development in India, the ministry asserted. “AI is a kinetic enabler of the digital economy and innovation ecosystem. Government is harnessing the potential of AI to provide personalized and interactive citizen-centric services through digital public platforms.”

In spite of the burgeoning interest in artificial intelligence in the U.S. and many developed markets, India has seen a limited number of startups entering the field. A strategic initiative from New Delhi could potentially encourage talented individuals to explore opportunities.

India’s decision, which impacts the world’s second-largest internet market, comes as tech entrepreneurs and academics increasingly call for government intervention in AI. Last week, more than 1,100 signatories, including Elon Musk and Steve Wozniak, signed an open letter urging “all AI labs to immediately pause for at least 6 months the training of AI systems more powerful than GPT-4.”

Italy recently imposed a temporary ban on OpenAI’s ChatGPT, citing concerns that it violated the European Union’s General Data Protection Regulation (GDPR). While some U.S. lawmakers have expressed concerns about AI, few are actively pursuing regulation, The New York Times reported last month.