Artificial Intelligence (AI) has developed at a very fast rate, and this has significantly changed the way governance, commerce, healthcare, and judicial administration in India take place. Although AI-powered technologies are likely to provide organizations with efficiency, innovation, and economic benefits, they also give rise to sophisticated legal issues related to data privacy, cybersecurity, and regulatory responsibility. This paper presents a critical evaluation of the evolving framework of AI governance in India, particularly examining how data protection and cyber resilience intersect and are governed within an ethical and legal context. It examines the AI Governance Guidelines issued on 5 November 2025 by the Ministry of Electronics and Information Technology (MeitY) under the IndiaAI Mission, and evaluates their effectiveness vis-à-vis binding legal regimes such as the Digital Personal Data Protection Act, 2023 and the Information Technology Act, 2000. The paper identifies key concerns arising from voluntary compliance models, algorithmic opacity, cross-border data transfers, and emerging cyber threats such as deepfakes and adversarial attacks. Drawing upon constitutional principles under Article 21 and the evolution of judicial thought, including the White Paper on Artificial Intelligence and the Judiciary (2025) prepared by the Centre for Research and Planning (CRP) of the Supreme Court of India, the study examines how AI governance can establish a balance between technological innovation and the protection of fundamental rights. A comparative analysis of the European Union’s Artificial Intelligence Act and the federal approach of the United States is used to derive insights relevant to India’s plural and socio-economically diverse context. The paper concludes by proposing specific legal reforms aimed at enhancing enforceability, accountability, and inclusivity in artificial intelligence regulation, thereby contributing to India’s vision of innovation-oriented development in pursuit of Viksit Bharat.