With rapid technological advancements, we are witnessing a global rush to develop and implement AI models across sectors. This chapter will focus on India, a developing country as diverse as its 1.42 billion citizens, and will discuss the emerging best practices to be adopted by the vibrant startup economy in India. With a focus on four core elements of responsible and ethical AI, this chapter will provide solutions on how Indian businesses can balance the tussle between innovation and regulation, while upholding ethical standards. Global policies such as the OECD Principles and the UNESCO Guidelines on the use of AI are already prompting sectoral guidelines in India. Furthermore, the recent intervention by Indian authorities, mandating transparency and explainability in AI marks a significant regulatory step. Discussing regulatory principles, this chapter will throw light on potential regulatory models which may prove to be successful in the Indian economy. This chapter will also discuss the role of various stakeholders which will impact the use of AI in India. In conclusion, this chapter will highlight the importance of scalable AI models, along with a focus on sustainable development and use of AI models in India.