India’s digital growth has been rapid, bringing new technologies, governance models and India-specific digital policies. This shift has shaped the country’s approach to data governance, aimed at empowering citizens. As the government adopts new technologies, there is growing debate about balancing data rights with digital innovation, especially as many citizens may not fully understand the risks of data misuse. However, despite the central role data plays in both public and private sectors, India still lacks a comprehensive data protection law as of August 2022.

One challenge India faces is the vast amount of data being collected by both Indian and foreign companies. Data storage is cheap, so organizations hold onto it indefinitely in case it becomes useful. Unfortunately, this data is often siloed and the people it pertains to, Indian citizens, have little control over how it is used. To address this, India has introduced policies not just to reduce privacy risks, but also to give individuals more control over their data.

India’s data governance approach is influenced by its unique domestic needs and global standing. The country has introduced both regulatory and technological solutions, like the Data Empowerment and Protection Architecture (DEPA), to empower citizens and businesses through data sharing. This technolegal framework aims to provide Indian citizens with access to their own data, allowing them to benefit from it.

India’s Data Economy 

India’s IT sector has come a long way since the 1980s when it was primarily focused on software exports and was valued at just $25 million, contributing only a tiny fraction of the country’s GDP. At the time, the industry faced high import tariffs and the government didn’t recognize software as a key industry. Yet, despite these challenges, India’s IT sector thrived.

Today, the IT industry is worth $200 billion annually and makes up 13% of India’s GDP. While exports remain important, domestic demand for IT services has grown rapidly, driven by the rise of mobile internet. More than 750 million Indians now use smartphones, giving them access to digital services, information and even government offerings, no matter where they are.

Over the past decade, India has also built an extensive digital infrastructure, enabling citizens to live more paperless, digital lives. For example, the Unified Payments Interface (UPI) processes more than 5.4 billion transactions every month, allowing people to transfer money easily. This has opened up new business opportunities, particularly for small businesses and street vendors.

A similar transformation is expected in other areas, like healthcare and education, as India continues to develop its digital framework. This new infrastructure will allow different sectors to work together more efficiently, leading to more competition and opportunities.

India’s Approach to Data Governance

India’s data governance has been shaped by the country’s rapid digital growth, increased data generation and the influence of global regulations like the GDPR. While India is looking to protect individual privacy, it is also focused on data sharing and empowerment. The country’s policy frameworks emphasize improving access to data, not just protecting it.

One key feature of India’s data governance model is its use of homegrown technological and legal systems to meet policy objectives. For example, frameworks like DEPA are designed to enable data sharing while empowering citizens. These tools are similar to global standards like the internet protocol (IP) for online communication or GPS for navigation.

Another significant part of India’s strategy is its strong emphasis on asserting control over its data resources, meaning that Indian data should remain within the country and be controlled by Indian entities. This is to ensure that the economic benefits of data are retained within India and to protect the country from “data colonialism” by foreign technology companies. India has also introduced regulations to ensure that certain types of data, such as banking and telecom data, are stored locally to give Indian authorities access when needed.

Global Context of India’s Data Governance

India’s approach to data governance is unique, but it must be understood in the global context. Different countries have taken various stances on data regulation. For instance, Japan advocates for the free flow of data across borders, while the United States supports a laissez-faire approach, allowing data to move freely. On the other hand, Europe has adopted strict data protection laws like the GDPR, focusing on protecting individual rights.

Countries like China have taken a more aggressive approach to data governance, emphasizing strict control over data through localization and monitoring. India, however, is carving its own path. It declined to join the Osaka Declaration, which promotes free cross-border data flows, due to its focus on data localization and the belief that data should primarily serve national interests. The country’s large population, growing technological capacity and innovative governance solutions position it to play a key role in shaping the future of global data governance.

India’s digital revolution has created a demand for new data governance solutions that ensure privacy, accessibility, and economic growth. By developing legal frameworks and tech-based systems, India is establishing a unique approach in the global data governance scene. As the country keeps advancing in digital technology, its methods could become a model for other nations looking to empower their citizens while protecting data in our interconnected world.

Reference 

• Arvind Gupta and Philip E. Auerswald, “The Ups and Downs of India’s Digital Transformation,” Harvard Business Review, May 2019, https://hbr.org/2019/05/the-ups-and-downs-of-indias-digital-transformation.
• Indian Ministry of Electronics and Information Technology, A Free and Fair Digital Economy Protecting Privacy, Empowering Indians (New Delhi: Committee of Experts Under the Chairmanship of Justice B.N. Srikrishna, https://web.archive.org/web/20220809182239/https://www.meity.gov.in/writereaddata/files/Data_Protection_Committee_Report.pdf.

• Indian Ministry of Electronics and Information Technology, “Report by the Committee of Experts on Non-Personal Data Governance Framework.

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