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India is on the verge of implementing a significant and long-awaited bill on personal data protection. This legislation, demanded by both businesses and civil society groups, seeks to regulate internet usage and the sharing of online data in the world’s most populous country.
The bill was passed by the upper house of Parliament on Wednesday and will come into effect once signed by President Droupadi Murmu in the coming days, according to a senior government official.
Ashwini Vaishnaw, India’s Minister of Railways, Electronics, and Information Technology, stated that the bill strikes a balance between protecting user data and keeping the internet open.
With nearly 1 billion internet users, India has spearheaded one of the world’s largest digitization efforts, collecting citizens’ personal information through the Aadhaar ID system and developing a robust digital infrastructure called the India Stack.
However, the country has lacked a comprehensive law governing data sharing among companies, government agencies, and others. This has raised concerns about potential misuse of information and has left businesses vulnerable.
Vaishnaw highlighted that India’s new data protection law differs from the European Union’s General Data Protection Regulation (GDPR) in that it is not as strictly prescriptive. While it encompasses well-established data protection principles, such as limiting data collection purposes and storage duration, it takes a more flexible approach compared to the GDPR.
In recent years, India has experienced several high-profile data breaches, including a leak of sensitive data from government-linked vaccination databases in June. The government denied any breach occurred.
The data protection law has been in the works for years, gaining momentum after the Supreme Court ruled in 2017 that Indians have a fundamental right to privacy. Multiple versions of the bill were introduced and revised following backlash from business groups, civil society advocates, and opposition politicians.
The latest draft of the bill was adopted with minimal resistance, passing the upper house via a voice vote after opposition politicians, who wanted the bill to undergo further review in committee, walked out of the chamber.
The updated version of the bill addressed some business concerns, including relaxing restrictions on data transfer to overseas companies.
Arun Prabhu, a partner and head of technology and telecom at law firm Cyril Amarchand Mangaldas, described the law as more business-friendly and practical.
The law also mandates the creation of a government-controlled data protection board responsible for overseeing compliance.
However, the law is a subject of concern for civil society activists who argue that exemptions for the government from data protections pave the way for state surveillance.
One provision of the law allows the government to bypass certain aspects of the bill on grounds related to India’s sovereignty, integrity, state security, foreign relations, and maintenance of public order.
Salman Waris, managing partner at Delhi-based law firm TechLegis, criticized this provision, stating that the government is granting itself broad powers while exempting its own activities from the law. He argued that this contradicts the purpose of the act, which should apply to private companies and individuals as well.
Vaishnaw defended the bill, asserting that it adheres to the constitution and includes only four exemptions, compared to the 16 exemptions under the EU’s GDPR.
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