India’s highly anticipated Data Protection Bill is on the verge of receiving approval from the Union Cabinet, signaling a significant step forward in safeguarding personal data. Following several rounds of public consultation and inter-ministerial discussions, the draft bill is poised to be tabled during the upcoming Monsoon session of Parliament after securing Cabinet support.
The Data Protection Bill holds a pivotal position within the broader framework of technology regulations being developed by the Indian government. This comprehensive framework includes the Digital India Bill, the Indian Telecommunication Bill, and a policy governing non-personal data. The previous version of the bill faced setbacks and was withdrawn in August last year after going through multiple iterations and eliciting feedback from a Joint Committee of Parliament.
A notable feature of the new draft bill is its potential to enable global data flows to most jurisdictions, barring a specified negative list of restricted countries. This paradigm shift aims to ensure uninterrupted business operations for enterprises while positioning India as a key player in the global data transfer network. It is particularly crucial in ongoing trade negotiations, including those with prominent regions like the European Union.
The latest version of the bill also incorporates provisions for “deemed consent,” which will impose more stringent regulations on private entities while allowing government departments to assume consent for processing personal data in matters pertaining to national security and public interest. Additionally, the bill is designed to ensure harmonization with existing regulations issued by other government departments or ministries.
Despite facing criticism from privacy activists, who argue that it grants extensive exemptions to the government and weakens the role of the data protection board, government officials contend that the bill strikes a delicate balance between protecting consumer rights and fostering innovation, economic growth, and India’s reputation as a secure global hub for data processing.
It is important to note that the landscape surrounding the Data Protection Bill is dynamic, and updates may have occurred since the publication of this article. Nevertheless, the bill’s progress signifies a significant milestone in India’s journey towards enshrining data protection measures and reinforcing its position in the global digital ecosystem.
