The Union cabinet has given its nod to Digital Data Protection Bill (DDPB) which is likely to be tabled in the Monsoon of Parliament beginning from July 20. The Bill aims to provide the much-needed legal framework for the protection of citizens' digital data, responding to growing concerns about privacy, data security, and the need for stringent control over data handling practices.
India's foray into digital data protection started with the Information Technology Act, 2000, an early attempt at regulating data protection. However, this legislation didn't specifically address personal data protection. The catalyst that accelerated India's need for a comprehensive data protection law was the 2017 landmark judgment by the Supreme Court, which recognised the right to privacy as a fundamental right.
In response, the government formed a committee headed by Justice B. N. Srikrishna, which proposed a draft Personal Data Protection Bill in 2018. After a considerable period of public consultation and parliamentary review, the bill metamorphosed into the Digital Data Protection Bill.
Why is it needed?
The primary driver behind the DDPB is the escalating need to safeguard citizens' data in an increasingly digital world. Digital transactions have surged in the past decade, leading to the creation of vast amounts of personal data. Simultaneously, incidents of data breaches and misuse have become alarmingly common.
The Bill is intended to build a robust data protection framework, thereby promoting trust in the digital economy and protecting citizens' rights while creating a conducive environment for innovation.
What are the major challenges?
Despite the critical need for this legislation, the Bill has faced significant hurdles. One of the main criticisms pertains to the “data localisation” clause that requires companies to store a copy of all personal data within the country. Critics argue that this provision will increase operating costs for businesses, particularly smaller ones, and could hinder India's burgeoning digital economy.
Moreover, the broad exceptions given to government agencies for processing personal data without consent have raised alarm. Privacy advocates claim this could potentially infringe upon individuals' right to privacy.
Also, the effectiveness of the proposed Data Protection Board of India is uncertain, given that its members are appointed by the government, leading to concerns about its independence and ability to withstand political pressure.
What opportunities DDPB brings to the table?
Despite these challenges, the DDPB presents significant opportunities. It will bring India on par with global standards of data protection like the General Data Protection Regulation (GDPR) in Europe. Businesses could benefit from this standardisation, gaining the trust of consumers and international partners, and making it easier to operate globally.
It also gives a chance to promote ethical data practices and to foster innovation in fields like AI and machine learning, which rely heavily on data.
Why experts are still not happy?
The Bill has faced opposition from various sectors. Companies, particularly in the IT and ITeS sector, express concerns about the financial and logistical burdens of compliance. Privacy advocates and civil society groups decry the potential for government overreach and the impact on citizens' privacy rights.
What is Tech Observer views on Digital Data Protection Bill?
While the Digital Data Protection Bill represents a crucial step towards a robust data protection regime in India, it is a nuanced legislation with potential trade-offs. Balancing the need for data protection, individual privacy, and a thriving digital economy will be key to its successful implementation. The bill marks the beginning of a new chapter in India's data privacy narrative, and as it stands today, it's a work in progress with room for improvement.
