Introduction — Why Autonomous Vehicles Matter for India

The evolution of Autonomous Vehicles (AVs) promises to reshape mobility across the world, and India is no exception. As cities become more congested, as traffic accidents claim lives, and as demand rises for efficient, sustainable, and safe transport, AVs could offer major benefits like reduced accidents, smoother traffic flow, improved accessibility, and, in the long term, lower emissions (especially when integrated with electric vehicles). In India, a growing number of tech startups and automotive companies are already working on AV-related innovations tailored to Indian conditions. Yet, despite this momentum, a glaring gap remains.

There is no comprehensive autonomous vehicle law in India that governs deployment, testing, liability, data privacy, and the unique challenges posed by self-driving systems. This article explores the current landscape, regulatory gaps, efforts underway, and what needs to be done to build a robust self-driving regulation and ensure mobility compliance that balances innovation, safety, and public interest.

Current Regulatory Landscape — What Exists and What Doesn’t

Legacy Laws: The Constraints

At present, the principal laws governing motor vehicles in India are the Motor Vehicles Act, 1988 (MV Act) and the Central Motor Vehicles Rules, 1989 (CMVR), complemented by other statutes such as the Indian Penal Code, 1960 (for liability) when accidents occur.

However, these regulations were written with the assumption that a human driver is always in control, an assumption that breaks down in the case of AVs. For example:

• The MV Act requires that vehicles be “under the effective control of the person driving.”
• Licensing provisions presuppose a human driver behind the wheel.
• Liability frameworks (for accidents or damage) assume human negligence or fault. They don’t accommodate scenarios where AI/software decisions or sensor failures are involved.

As a result, the existing laws are inadequate when it comes to regulating Autonomous Vehicles or granting legal status to self-driving systems. Several legal analyses conclude that India “does not permit testing of autonomous vehicles” under the current statutory regime.

Thus, while the MV Act and CMVR continue to govern conventional vehicles, they effectively prevent AVs from being deployed or operated legally, a clear indication of how much regulatory innovation is needed.

Emerging Discussions & Recognized Need for New Laws

Acknowledgement of the Gap

Observers, experts, and even government-linked bodies have recognized the urgency of a dedicated regulatory framework. At a recent event organized by the India chapter of the International Road Federation (IRF), experts underlined that India currently lacks explicit law or even Standard Operating Procedures (SOPs) for deployment or operation of AVs.

They warned that continuing with existing laws alone may be insufficient, especially given India’s complex traffic conditions, mixed traffic (cars, two-wheelers, rickshaws, pedestrians), poor lane discipline, inconsistent road quality, and chaotic road behavior.

Future Vision & Roadmap

According to recent projections discussed at the IRF event, India aims to push for wider adoption of advanced driver-assistance systems (ADAS) by 2030, and eventually aims for Level 3 and Level 4 AVs (partially to highly autonomous vehicles) in specific urban corridors or controlled routes by 2040.

So far, a handful of tech startups and legacy automakers are already working on AV solutions tailored to Indian conditions. For example, the recent review notes firms such as Minus Zero, Swaayatt Robots, Flux Auto, and Flo Mobility, among others, are experimenting with solutions, though none have full-scale public deployment due to regulatory and infrastructure constraints.

Thus, there is growing stakeholder pressure from innovators, researchers, legal analysts, and civic-safety advocates to draft a comprehensive autonomous vehicle law India that properly addresses not only the technology, but its risks and real-world integration challenges.

What a Regulatory Framework for AVs Must Address

For a robust, future-ready framework for Autonomous Vehicles in India, the following core dimensions must be covered:

1. Testing & Certification Protocols

• Clear guidelines for how testing of AVs should be conducted under what conditions, on which roads (controlled environments, test tracks, limited public roads), with what safety constraints.
• Mandatory certification requirements before an AV system may be deployed, covering sensors, software, reliability, cybersecurity, etc.

2. Liability & Insurance

Traditional driver-based liability does not make sense for an AV making key decisions. The law must define: in case of an accident, who is liable? The vehicle owner? The manufacturer? The software provider? Or a combination (shared liability)? Several experts argue for shifting liability away from the “driver” and toward the manufacturer or technology supplier, especially for software-driven or sensor-driven failures.

Similarly, insurance laws must adapt: conventional motor insurance may not cover AV-specific risks. New products must emerge, and insurance regulations must evolve to enable “AV insurance.”

3. Safety Standards & Data Governance

Given AVs rely on sensors, cameras, LiDAR/radar, and often cloud-based computing, regulations must define minimum safety standards, cybersecurity requirements, data-privacy and data-ownership protocols, and ethical guidelines for AI behavior (e.g., decision-making in emergencies). Legal analyses often highlight cybersecurity as a major concern.

Also, standards must be aligned with levels of automation defined globally by SAE International (SAE), ranging from Level 0 (manual) to Level 5 (fully autonomous).

4. Licensing, Registration & Use Norms

Since conventional license rules don’t map to AVs, the law must define whether a new kind of “autonomous-vehicle licence” is required, who can obtain it, what restrictions apply (e.g., minimum age, supervision, allowed zones), and whether minors can be passengers.

Also, registration rules may need to reflect that the vehicle might be operated by AI, not a driver, maintenance and software update compliance requirements, periodic safety auditing, and mandatory reporting of incidents, software bugs, etc.

5. Infrastructure & Urban-Planning Integration

AV deployment will require supportive infrastructure. Good road quality, consistent lane markings, reliable signage, smart traffic signals, perhaps 5G connectivity, dedicated AV lanes or corridors, and appropriate urban planning. Without this, AVs may fail or pose risks.

Given India’s mixed traffic and road diversity (from congested city streets to rural roads), any regulatory framework will also need to account for context-specific challenges.

6. Governance: Regulatory Authorities & Institutional Mechanisms

There should be a dedicated regulatory body (or powers to an existing body) to oversee AV testing, certification, compliance, recalls, data privacy, and liability issues, and to coordinate between central and state governments, city authorities, automotive firms, tech startups, and law-enforcement agencies. Many legal analyses suggest forming a separate AV-policy / regulatory authority.

Why India Needs Such a Framework — The Stakes Are High

Rising Interest, Startups & Market Potential

India already hosts several tech startups working on AV, a sign that there is strong entrepreneurial interest in this space.

If India manages to get its regulatory act together, this could unlock huge economic value: domestic manufacturing of AVs, software, and sensor-stack development, employment in R&D and mobility services, and global export potential. A clear self-driving regulation will give confidence to investors, automakers, and consumers alike.

Safety, Congestion, and Environmental Benefits

India’s roads are among the most accident-prone in the world. By eliminating human error, AVs promise to drastically reduce accidents. Also, AVs optimized for efficiency can reduce traffic jams and improve fuel or energy efficiency (especially if combined with EVs), offering environmental and public-health benefits. A well-crafted regulatory framework ensures these benefits are realized without creating new hazards.

Social Equity & Mobility Inclusion

With AVs, people who cannot drive, are disabled, or those without licences, could gain mobility, improving accessibility and inclusion. But for this to happen safely and equitably, regulation must ensure safety, accountability, and affordability.

Without a regulatory framework, AV deployment may remain limited to high-end cars or isolated pilot projects undermining the inclusive promise of this technology.

Challenges & Roadblocks to Formulating AV Regulations in India

Despite the clear need, there are many challenges:

• Complex traffic environment: Mixed traffic, poor lane discipline, inconsistent road quality, unpredictable behavior, all make AV deployment harder and riskier.
• Infrastructure readiness: Many Indian roads lack good lane markings, smart traffic systems, or reliable connectivity, making sensor-based driving difficult.
• Institutional inertia: Amending the MV Act or enacting a new law requires political will, cross-ministry coordination (transport, technology, law & justice, data/privacy), and careful drafting, a slow process by nature. Several analyses note that despite draft proposals for automation-testing permissions, no concrete legislation has emerged.
• Liability, insurance, and public trust: Defining liability in accidents involving AVs, handling data privacy, cybersecurity, and AI decision-making failures are all complex legal and ethical issues. Many insurers or consumers may be wary of AVs until there is clarity.
• Economic and social resistance: Concerns about job loss (drivers, taxi/rickshaw drivers), cost of AV technology (sensors, LiDAR, AI stack), public acceptance, and resistance from the workforce. Indeed, senior government leaders have on record said they will not allow “driverless cars” until societal concerns are addressed.

These challenges explain why, nearly a decade after global AV technology began its advance, India still lacks a cohesive autonomous vehicle law India.

What Experts and Stakeholders Are Recommending

Based on analysis and expert opinions, the pathway forward includes:

• Drafting a dedicated national AV policy (or “National Autonomous Vehicle Policy”) that sets out legal, safety, liability, testing, data privacy, and licensing regimes.
• Establishing a regulatory body (or expanding the mandate of an existing body such as the Ministry of Road Transport and Highways — MoRTH) to oversee AV operations, testing approvals, compliance, recalls, safety audits, and data governance.
• Working in public-private partnerships. Leveraging research institutions, tech startups, automobile manufacturers, and city governments for pilot projects in controlled environments (campuses, industrial parks, and limited urban corridors), building real-world data, and refining standards before scaling.
• Defining liability and insurance frameworks clearly: shifting liability towards manufacturers/software providers for AV failures, while ensuring compensation and consumer protection in accidents.
• Setting technical standards like defining minimal safety, cybersecurity, data privacy, sensor redundancy, software testing, real-time monitoring, and failsafe mechanisms. Also aligning with global best practices (e.g., using the automation levels from SAE).
• Upgrading infrastructure, such as improving road quality, lane markings, signage, traffic management, implementing smart traffic systems, and enabling connectivity (5G, V2X) where needed. This is crucial if AVs must handle India’s mixed and chaotic traffic.
• Public outreach, trust-building, and phased rollout. Starting with limited, controlled deployments (campus shuttles, industrial parks, dedicated corridors), plus transparency on testing, safety data, and incident reporting to build consumer confidence and ensure social acceptance.

The Role of Tech Startups — Innovation Meets Regulation

Tech startups hold a central role in ushering in an AV revolution in India. Their strengths lie in agility, innovation, and the ability to design AV solutions tailored to Indian conditions (chaotic traffic patterns, mixed vehicles, unpredictable behavior, poor infrastructure). For example, firms like Minus Zero, Swaayatt Robots, Flux Auto, and Flo Mobility are already exploring prototypes, while legacy automakers have started patenting Level-5 AV designs.

But without a proper self-driving regulation and legal clarity, these efforts risk being stalled or limited to research prototypes. A clear autonomous vehicle law India would not only enable legal testing and deployment, but also attract investment, both domestic and global, to build AV hardware, software, sensor-stack, testing infrastructure, compliance tools, and service platforms.

In effect, by supporting startups, the government can stimulate an entire AV ecosystem. R&D, manufacturing, software, data services, maintenance, insurance, creating jobs, boosting the economy, and building India’s autonomy in mobility tech, rather than always importing tech from abroad.

What Could Be a Practical Roadmap Toward Regulation — Phased & Realistic

Given India’s infrastructural and socio-economic diversity, a phased, pragmatic roadmap toward regulation and deployment makes sense. Below is a suggested roadmap:

(2025–2030) Phase 1:

• Draft and publish a national AV policy (framework for testing, data privacy, certification, liability, safety).
• Enable controlled pilot projects (campuses, industrial parks, limited urban corridors) under special permissions.
• Encourage tech startups and automakers to test Level 2/3 AVs (ADAS, semi-autonomous)
• Develop infrastructure readiness, improved road quality, lane markings, signage, smart-traffic signals, and partial 5G/V2X deployment.

(2030–2035) Phase 2 :

• Establish a dedicated regulatory body (or empower MoRTH + other agencies) to oversee AV certification, compliance, recalls, and licensing.
• Introduce new licensing/registration norms for AVs (passenger cars, robo-taxis, shuttles).
• Mandate safety, cybersecurity, data privacy, and periodic audit/compliance requirements.
• Begin limited deployment of Level 3/4 AVs on defined corridors (expressways, controlled zones, shuttle services), possibly starting with commercial fleets (e.g., bus services, public transport), before private consumer cars.

(2035–2040 and beyond) Phase 3 :

• Expand AV deployment to more urban areas, with public-private partnerships.
• Introduce consumer-facing AV services (robo-taxis, shared AVs) under regulated licensing and compliance frameworks.
• Build and enforce insurance and liability ecosystems, a mandatory AV-insurance product, clear liability in case of accidents, and standardized compensation norms.
• Monitor, audit, iterate, and refine regulations based on real-world data, accidents/incidents, software updates, and public feedback.

Such a cautious but steady roadmap balances innovation and public safety, enabling mobility transformation without undue risk.

International Comparisons: How Other Countries Regulate Autonomous Vehicles (AVs)

Understanding how global leaders regulate Autonomous Vehicles can offer India valuable guidance as it prepares its own autonomous vehicle law India, self-driving regulation, and mobility compliance framework. Below are the most relevant examples.

United States — State-Driven Innovation With Federal Safety Oversight

The U.S. follows a hybrid model where federal agencies set safety guidelines, while individual states regulate testing and deployment.

Key Features

• NHTSA (National Highway Traffic Safety Administration) issues federal voluntary guidelines (AV 3.0, AV 4.0), focusing on safety assessments and manufacturer responsibility.
• States such as California, Arizona, Nevada, Michigan, and Texas have specific laws allowing AV testing and commercial services.
• California DMV mandates:
  • Test-vehicle permits
  • Safety driver requirements (or driverless permits)
  • Mandatory public reporting of disengagements and crashes

What India Can Learn

• Allow testing and deployment via state-level AV rules under a national umbrella.
• Mandate mandatory crash data, disengagement reports, and transparent safety disclosures.
• Permit controlled services like robo-taxis (as done by Waymo and Cruise) to collect data and build public trust.

European Union — Harmonized Standards, Safety First

The EU promotes cross-border harmonization through UNECE (United Nations Economic Commission for Europe) regulations.

Key Features

• AV legislation is based on UNECE WP.29 frameworks.
• In 2021, the EU approved automated lane-keeping systems (ALKS), one of the first AV regulations globally.
• Strict cybersecurity, human-machine interface, and data-protection rules (GDPR) apply.
• Deployment requires type-approval certification.

What India Can Learn

• Set standardized national certification frameworks for sensors, algorithms, software, and vehicle systems.
• Enforce strong cybersecurity and data privacy rules, especially since AVs collect sensitive road, location, and personal data.
• Adopt India-specific “type approval for AV systems” before sale or deployment.

United Kingdom — New Dedicated AV Law (2024)

In 2023–24, the UK passed one of the world’s most advanced AV bills, the Automated Vehicles Act.

Key Features

• Establishes clear definitions for self-driving, responsible persons, and Authorized Self-Driving Entity (ASDE).
• Transfers liability from the human driver to the ASDE when the system is in control.
• Requires safety assurance, regular compliance audits, and transparent performance metrics.
• Allows deployment of AV public transport under strict oversight.

What India Can Learn

• Create an Indian equivalent of ASDE — making manufacturers/software providers legally responsible instead of human drivers.
• Introduce periodic audits, compliance reporting, and licensing for AV operators.
• Develop a legal definition of “self-driving” to avoid ambiguity.

China — Government-Led, Fast Scaling, Public Pilots

China is currently among the fastest adopters of AVs.

Key Features

• National guidelines combined with city-level pilots (Beijing, Shanghai, Shenzhen).
• Permission for driverless robotaxis on public roads in selected zones.
• Strong government investment in 5G, V2X (vehicle-to-everything), HD maps, and smart infrastructure.
• Shenzhen’s AV law (2022) provides liability rules and defines fallback responsibility.

What India Can Learn

• Start with city-based AV Sandbox Zones (e.g., Bengaluru, Pune, Hyderabad) for controlled deployment.
• Invest in smart infrastructure, such as camera-enabled intersections, lane-marking upgrades, HD mapping, and V2X.
• Encourage public-private AV pilots with Indian tech startups.

Japan — Gradual, High-Control Model With Clear Roadmaps

Japan has allowed Level 3 automated vehicles since 2020.

Key Features

• First country to legalize Level 3 highway autonomy (Honda Legend).
• Mandatory compliance with strict safety and monitoring systems.
• Government-approved AV deployment plans for:
  • Logistics
  • Transportation for older people
  • Rural mobility

What India Can Learn

• Begin with highway-based Level 3 autonomy, where conditions are controlled.
• Use AVs to support public mobility, especially for older people and rural transport areas, where India shares similar demographic needs.

Conclusion — The Need for Balance

The promise of Autonomous Vehicles for India is immense. With rising urbanization, traffic congestion, pollution, road accidents, and demand for efficient mobility, AVs offer a possible leap forward. Further, tech startups in India already show significant interest and capability, provided the regulatory environment permits them to innovate, test, and deploy.

Yet, without a comprehensive autonomous vehicle law India, and without detailed self-driving regulation, the AV revolution risks stalling at the prototype stage. Existing laws like the MV Act and CMVR are inadequate for AVs. Critical questions around liability, licensing, data governance, safety standards, and infrastructure integration remain unanswered.

For AVs to become a reality, not just a futuristic dream, India must act proactively. A well-thought-out regulatory framework, built in consultation with stakeholders (government, industry, tech startups, citizens), is the need of the hour. By combining mobility compliance, robust lawmaking, and infrastructural modernization, India could leapfrog into an era of safe, efficient, inclusive, and sustainable smart mobility.

In short, if India wants to shape its mobility future, rather than be left behind as a bystander in the global AV race, it is time now to draft an autonomous vehicle law India and a clear self-driving regulation.

References

• Ministry of Road Transport & Highways (MoRTH) – Government of India
• NITI Aayog – National Strategy for Artificial Intelligence (AI for All)
• SAE International – Levels of Driving Automation (Global Standard)
• International Transport Forum (OECD) – Autonomous Vehicles & Policy Report
• World Economic Forum (WEF) – Safe Drive Initiative: Framework for Autonomous Vehicles