India has released a proposal that would force AI companies to pay royalties whenever they train models on copyrighted Indian content. The Department for Promotion of Industry and Internal Trade published the framework on December 8, opening a 30-day public consultation period.
Under the plan, AI developers would get automatic access to all legally available copyrighted works through a mandatory blanket license. In exchange, they would pay into a new nonprofit body called the Copyright Royalties Collective for AI Training (CRCAT), which would distribute funds to creators. Rights holders cannot opt out of the system but would be guaranteed compensation for their work.
The eight-member committee behind the proposal, chaired by additional secretary Himani Pande, argues this approach avoids years of legal uncertainty while ensuring creators get paid from the start. The 125-page working paper frames it as the least burdensome way to manage large-scale AI training. Tech industry groups pushed back. Nasscom, representing firms including Google and Microsoft, filed a formal dissent calling for a text-and-data-mining exception instead. The Business Software Alliance, whose members include Adobe, Amazon Web Services, and Microsoft, warned that mandatory licensing could reduce model quality by limiting training data.
If adopted, India would become one of the first major economies to implement a compulsory licensing regime for AI training data. The committee will review feedback before finalizing recommendations.
The Bottom Line: India's 30-day consultation on mandatory AI royalties could establish the first major economy-level framework linking AI training directly to creator compensation.
QUICK FACTS
- Proposal published December 8, 2025; 30-day public comment period now open
- New body: Copyright Royalties Collective for AI Training (CRCAT)
- Eight-member committee chaired by DPIIT additional secretary Himani Pande
- Nasscom and Business Software Alliance filed formal dissent
- Creators cannot opt out but receive guaranteed statutory remuneration
