Editorial 1: Digital child abuse, the danger of AI-based exploitation
Context
The Indian government should change current laws to deal with new threats.
Introduction
Recently, the UK’s Department for Science, Innovation, and Technology, along with the AI Security Institute (formerly AI Safety Institute), released the first International AI Safety Report 2025 (updated on February 18, 2025). The report warns about the growing risk of AI being used to create, store, and share child sexual abuse material (CSAM).
AI and the Rising Threat of CSAM: Global and Indian Perspectives
- United Kingdom: First to introduce laws targeting AI tools that generate child sexual abuse material (CSAM).
- CSAM: Includes audio, video, and images depicting sexually explicit content involving children.
- World Economic Forum (2023): Warned that generative AI can create realistic images, especially of children.
- Internet Watch Foundation (Oct 2024): Reported the increasing spread of CSAM on the open web.
- Government of India: Should update laws to tackle emerging threats and ensure long-term protection.
U.K.’s New AI-Centric Approach to Tackling CSAM
Key Provisions of the Upcoming U.K. Legislation
- Ban on AI tools: Illegal to possess, create, or distribute AI tools that generate child sexual abuse material (CSAM).
- Prohibition of paedophile manuals: Criminalizes possession of manuals that guide individuals in using AI toolsto create CSAM.
- Shift in legal approach: Moves from an ‘accused-centric’ and ‘act-centric’ model to a ‘tool-centric’ approach.
Comparison of Existing and Proposed Laws
| Aspect | Existing Laws | Proposed U.K. Law |
| Focus | Who committed the act and what was done | Tool/medium used for the crime |
| Relevant Laws | – Protection of Children Act 1978: Criminalizes taking, distributing, and possessing indecent images of children. – Coroners and Justice Act 2009: Criminalizes possession of prohibited child images, including non-photographic materials. | Outlaws possession and use of AI tools that generate CSAM |
| Prevention Stage | Punishes offenders after the crime is committed | Allows authorities to intervene at the preparation stage |
| Scope of CSAM | Restricted to actual child images | Covers AI-generated CSAM, closing legal loopholes |
| Impact on Mental Health | Indirect approach to curbing CSAM spread | Prevents initial rippling effectson children’s mental health |
Significance of the Proposed Law
- Stronger deterrence: Criminalizing AI tools prevents misuse at the source.
- Proactive enforcement: Enables authorities to act before the crime occurs.
- Mental health protection: Reduces the psychological impact of CSAM exposure.
- Legislative clarity: Addresses AI-generated CSAM, previously unregulated.
On whether India is future ready
Rising Cybercrimes Against Children and Legal Gaps in AI-Generated CSAM
- Increase in Cybercrimes: The NCRB Report 2022 shows a significant rise in cybercrimes against children compared to the previous year.
- Incidents of Child Pornography: The National Cyber Crime Reporting Portal (NCRP) recorded 1.94 lakh cases of child pornography as of April 2024 under the Cyber Crime Prevention against Women and Children (CCPWC) scheme.
- Collaboration with NCMEC, USA: Since 2019, the NCRB has partnered with the National Centre for Missing and Exploited Children (NCMEC), USA, receiving 69.05 lakh cyber tip-line reports shared with States and Union Territories as of March 2024.
- Serious Violation of Child Rights: These figures highlight CSAM as a grave threat to a child’s right to life and dignity in India.
Existing Legal Framework for CSAM in India
| Law/Section | Key Provisions | Scope |
| Section 67B, IT Act 2000 | Punishes those who publish or transmit material depicting children in sexually explicit acts online. | Covers electronic transmission but not AI-generated content. |
| Sections 13, 14, 15, POCSO Act 2012 | Prohibits using children for pornography, storing child pornography, and using children for sexual gratification. | Protects real children but does not explicitly address AI-generated CSAM. |
| Section 294, Bharatiya Nyaya Sanhita | Penalizes the sale, distribution, or public exhibition of obscene materials. | Focuses on general obscenity laws, not AI-generated images. |
| Section 295, Bharatiya Nyaya Sanhita | Makes it illegal to sell, distribute, or exhibit obscene objects to children. | Does not specifically cover AI-generated CSAM. |
Legal Gaps in Addressing AI-Generated CSAM
- No Specific Laws for AI-Generated CSAM: Current laws only address real child abuse material but do not criminalize AI-created CSAM.
- Limited Regulation of AI Tools: Unlike the proposed U.K. law, Indian laws do not ban AI tools used to generate CSAM.
- Enforcement Challenges: Without a clear legal framework, authorities struggle to act against AI-based CSAM before it spreads.
Strengthening India’s Legal Framework to Combat CSAM
Key Legislative and Policy Reforms Needed
- Expand the Definition of CSAM
- As per the NHRC Advisory (Oct 2023), replace the term ‘child pornography’ in the POCSO Act with ‘CSAM’ to cover a broader range of content.
- Clarify ‘Sexually Explicit’ Under IT Act
- Define ‘sexually explicit’ under Section 67B of the IT Act to facilitate real-time identification and blocking of CSAM.
- Regulate Online Intermediaries
- Amend the IT Act to explicitly include Virtual Private Networks (VPNs), Virtual Private Servers (VPS), and Cloud Services as ‘intermediaries’.
- Impose statutory liability on these entities to comply with CSAM-related laws.
- Integrate Emerging Technological Risks
- Introduce statutory amendments to address AI-generated CSAM and other threats from new technologies.
- Adopt International Standards
- Support the UN Draft Convention on ‘Countering the Use of Information and Communications Technology for Criminal Purposes’ at the UN General Assembly.
Conclusion
The Ministry of Electronics and Information Technology has proposed the Digital India Act 2023 to replace the outdated IT Act. Since this law is still in progress, it should take inspiration from the U.K.’s new legislation and include specific rules to tackle AI-generated CSAM.
Editorial 2: The reciprocal tariff dilemma
Context
The best way for affected countries to respond to reciprocal tariffs is by reducing trade barriers within their own economies and with non-U.S. trading partners.
Introduction
Under the ‘Fair and Reciprocal Plan,’ the Trump administration is addressing unfair trade deals by setting equal tariffs for each trading partner. It checks for imbalances based on tariffs, taxes, subsidies, regulations, currency manipulation, and other trade barriers that restrict U.S. market access or hurt American businesses.
Global Merchandise Exports and U.S. Trade Share
U.S. Share in Global Exports (2010–2022)
- 2010: 12% of global merchandise exports went to the U.S.
- 2019: Increased slightly to 13%, just before the pandemic.
- 2022: Reached 13.4%, based on the latest available data.
- 87% of global merchandise trade occurs without U.S. involvement.
Variation in U.S. Trade Dependence
| Country/Region | Share of Exports to U.S. (2022) |
| Cayman Islands, Bermuda (Caribbean) | 85% |
| Canada, Mexico | Over 75% |
| 81 out of 160 countries (UN Comtrade data) | Less than 5% |
| 26 of these 81 countries (mostly in Africa) | Less than 1% |
| Global Average (160 countries) | 11.4% |
| Median (160 countries) | 4.7% |
| India, China, EU | 18%, 16%, and 19% respectively |
Key Takeaways
- The U.S. is not the primary export destination for most countries.
- While some economies like Canada, Mexico, and Caribbean nations rely heavily on U.S. trade, many countries, especially in Africa, have minimal trade ties with the U.S.
- Major economies like India, China, and the EU send less than 20% of their exports to the U.S., highlighting the diversification of global trade.
U.S. Tariffs vs. Partner Tariffs: A Comparison
Understanding Tariffs in U.S. Trade
- The U.S. imposes tariffs on goods imported from other countries.
- Other countries also impose tariffs on goods exported from the U.S.
- The latest tariff data (from UNCTAD TRAINS, 2022) covers 157 U.S. trading partners.
- The European Union (EU) is counted as a single entity due to its common tariff system.
Key Findings on Tariff Differences
Countries Where U.S. Tariffs Are Higher
- In 27 countries, the U.S. tariffs on imports are higher than the tariffs these countries impose on U.S. exports.
- This means the reciprocal tariff strategy does not work as a bargaining tool in these cases.
Major U.S. Trading Partners Affected
- The ‘Fair and Reciprocal Plan’ does not apply to about 20% of countries due to comparable or lower tariffs on U.S. exports.
- Key trading partners excluded from this plan:
- Canada
- European Union (EU)
- Japan
- United Kingdom (U.K.)
- These four regions alone accounted for 50% of U.S. exports in 2022.
- If these countries impose their own reciprocal tariffs, it could harm U.S. businesses instead.
Countries Where Tariffs Favor the U.S.
| Category | Number of Countries | Required Tariff Increase by U.S. | Examples |
| Minimal Tariff Disadvantage | 57 | Less than 5% | India, China |
| Very Small Adjustment Needed | 15 | Less than 1% | Some smaller economies |
| Significant Tariff Disadvantage | 73 | More than 5% | Various global markets |
- In 130 countries, the U.S. sees a tariff disadvantage where foreign tariffs on U.S. goods are higher than U.S. tariffs.
- However, in 57 of these, the difference is less than 5%, making the issue less significant.
- In 15 of these 57 countries, the tariff difference is less than 1%, meaning only minor adjustments are needed.
- The real challenge lies in 73 countries where the U.S. would have to raise tariffs by more than 5% to match its partners.
Why Higher Tariffs Could Backfire
- Countries with larger tariff differences are also the ones most reliant on U.S. exports.
- If the U.S. raises tariffs aggressively, these countries might:
- Impose retaliatory tariffs on U.S. goods.
- Divert exports to other trading partners.
- Reduce trade dependence on the U.S. over time.
- Many experts argue that tariffs ultimately harm the U.S. economy by making imports more expensive and reducing global trade.
Potential Shift in Global Trade Patterns
- Currently, 87% of global trade happens without the U.S..
- If the U.S. continues with high tariffs, many countries may look for new markets.
- The pandemic experience has shown that businesses quickly adapt to external shocks, sometimes faster than governments.
- This means countries may find alternative trade partners instead of accepting unfair tariff policies from the U.S.
Best Policy Approach to Reciprocal Tariffs
- Remove Business Barriers
- Countries should eliminate restrictions that make it hard to do business.
- This applies to both domestic trade and global trade with non-U.S. partners.
- Improve Trade Regulations
- Governments should streamline trade rules to make international transactions easier.
- Reducing unnecessary regulations will help businesses grow faster.
- Expand Trade Beyond Goods
- Focus on services as well, not just physical goods.
- Digital trade is growing rapidly, making it an important area for policy improvements.
- Digital Services Are the Future
- Reports from the World Bank and WTO show that digital services exports have grown faster than any other trade sector in the last 10 years.
- Countries should invest in digital trade agreements to stay competitive.
- Preferential Trade Agreements Help
- Trade agreements that address regulatory issues have a strong positive impact on digital services.
- These agreements make it easier for businesses to operate across borders.
- Avoid Retaliatory Tariffs
- Instead of wasting resources on trade wars, policymakers should focus on long-term economic growth.
- A smarter strategy is to enhance cooperation and create business-friendly policies.
Conclusion
The policy of reciprocal tariffs may ultimately harm the U.S. economy by triggering countermeasures from key trading partners. Instead of engaging in tariff battles, affected countries should focus on removing trade barriers, enhancing regulatory cooperation, and expanding trade partnerships. A strategic shift toward open markets and digital trade will ensure long-term economic resilience.
