Sansad TV: Bills and Acts- Digital Personal Data Protection Act, 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

Need for Data Protection in India

• Internet Usage in India: With 40 crore internet and 25 crore social media users, the significance of data protection is heightened.
• Cost of Data Breach: The average cost of a data breach in India is Rs. 11.9 crore, signaling a 7.9% increase since 2017.
• Legal Recognition: The Supreme Court's declaration in the KS Puttaswamy case established data privacy as a fundamental right under Article 21.

Challenges

• Data Export: Data stored abroad, especially by e-commerce companies, complicates the application of Indian laws.
• Data Localization: Mandating data localization faces opposition from private entities and foreign governments.
• User Consent: Issues arise with pre-ticked consent boxes and unclear terms and conditions.
• Privacy Breach: Difficulty in tracing those violating data privacy.
• Privacy Laws: Existing laws under the IT Rules, 2011, apply only to private entities, not government agencies.
• Data Ownership: TRAI guidelines stipulate individuals own data, with collectors as custodians subject to regulations.

India’s Data Protection Bill– Key Recommendations

• Expansion of Scope: Remove 'personal' from the title, indicating coverage of non-personal data, including anonymized personal data.
• Transfer Restrictions: Amend the section to limit sharing of sensitive personal data with foreign governments unless approved by the central government.
• Social Media Regulation: Mandate that social media platforms establish offices in India under their parent companies.
• Media Regulation: Propose a separate regulatory body for media oversight.
• Penalties: Introduce jail terms and fines for re-identifying de-identified data.
• Government Exemption: Allow exemption for government agencies only under exceptional circumstances.

Concerns

• International Players: Major digital economy players in India are based abroad, leading to data export challenges.
• Economic Impact: The financial benefits of big data primarily go to foreign MNCs, potentially draining India's economic wealth.
• Infrastructure Deficiency: Inadequate infrastructure for efficient data collection and management.

Way Forward:

• Data Minimization and Accountability: Emphasize data minimization and accountability for data processors and controllers.
• Public Interest Protection: Protect personal data collected for public interest purposes and ensure its proper use.
• Infrastructure Development: Develop energy, real estate, and internet connectivity infrastructure for India to become a global data center hub.
• Start-up Involvement: Encourage start-ups to develop technology that allows users control over their digital behavior data.
• Data Sharing: Promote data sharing with start-ups for a level playing field against global data companies.
• Native Internet Giants: Encourage the formation of native internet giants similar to China's model.
• Legal Update: Urgently update current data protection rules under the Information Technology Act to align with modern trends.
• Global Standards: Advocate for a stringent data protection law akin to the GDPR enacted by the European Union.