In the past few decades, India has undergone a remarkable transformation in its information technology (IT) and digital infrastructure landscape. From its budding stages in the 1980s, when the IT sector contributed a minuscule 0.01% to GDP, to becoming a $200 billion industry accounting for 13% of the economy, India’s digital journey has been one of innovation, adaptation and strategic development. Central to this growth is the Indian government’s evolving approach to data governance and sharing – a framework designed not only to leverage the country’s burgeoning data economy but also to empower its citizens while safeguarding their privacy.
Also read: Digital Personal Data Protection Act
At the core of this transformation lies the India Stack, a comprehensive digital infrastructure framework consisting of multiple layers aimed at democratizing access to digital services. Among these, the Consent Layer, embodied by the Data Empowerment and Protection Architecture (DEPA), stands out as a pivotal initiative. Unlike earlier layers focused on operational efficiency, the Consent Layer is a strategic innovation that puts individuals at the centre of data sharing and control.
The Evolution of India’s Digital Ecosystem
India’s IT revolution began in earnest with the economic liberalization of 1991, which opened markets, reduced barriers and encouraged foreign investment. Early initiatives such as the establishment of software technology parks and government procurement of IT services catalysed the sector’s growth. By 2001, India’s software exports had reached $6.4 billion, and its IT services industry began cementing its position as a global powerhouse.
The launch of the Digital India initiative in 2015 marked a significant leap forward. With programs like BharatNet for rural internet access, Universal Access to Mobile for mobile connectivity in remote areas, and the Smart Cities Mission, the government sought to transform India’s digital infrastructure into a robust public utility. These initiatives laid the foundation for a data-rich economy, which today is poised to generate as much as $1 trillion in economic value, aiding India’s ambition of becoming a $5 trillion economy by 2025.
The widespread adoption of digital services – fuelled by the penetration of mobile internet, with over 750 million smartphone users- has generated a wealth of data. Recognizing the transformative potential of this data, the Indian government has been actively developing frameworks for data governance and sharing, aiming to balance innovation with privacy and security.
The India Stack and the Consent Layer
The India Stack is a multi-layered digital framework that integrates foundational elements such as digital identity, payments, and data sharing. The foundational layers- Paperless, Presence-less and Cashless- are operational in nature, reducing transaction costs and increasing accessibility for citizens and businesses alike. These layers have already achieved remarkable success, exemplified by the widespread adoption of the Unified Payments Interface (UPI), which processes billions of transactions monthly and has become a global model for payment systems.
The fourth and most strategic layer, the Consent Layer, represents a paradigm shift in data governance. This layer is underpinned by the Data Empowerment and Protection Architecture (DEPA), which introduces a technolegal framework for consented data sharing. Unlike earlier layers that primarily focused on efficiency, the Consent Layer aims to empower individuals by giving them greater control over their personal data.
DEPA operates on the principle of “consented data sharing”, enabling individuals to share their data securely with third parties for specific purposes, while retaining control over its usage. This is achieved through Electronic Data Consent (EDC), which provides granular control over data sharing, such as defining time limits, specifying permissible usage and prohibiting downstream sharing without explicit consent. The core of this system is the Consent Artefact, a digital file that logs all parties involved, the data being shared and the terms of the consent. This ensures transparency, traceability and accountability in data transactions.
Practical Applications and Impact
The implementation of DEPA has already begun in the financial sector, where it is unlocking significant value for individuals and businesses alike. For instance, it allows users to securely share their financial transaction history with lenders, enabling personalized credit products without compromising privacy. The same framework is being extended to other sectors such as healthcare, education and telecommunications, promising to revolutionize service delivery across the board.
In healthcare, for example, DEPA could enable patients to share their medical records with doctors or insurance providers seamlessly, ensuring timely access to care while maintaining data security. In education, students could share their academic credentials with employers or institutions through a secure and verifiable digital workflow, eliminating the need for cumbersome manual processes.
By enabling consented data sharing, DEPA also facilitates the creation of data marketplaces, where data can be securely exchanged between individuals, businesses and governments. This opens up new avenues for revenue generation, innovation and competition, transforming data from a passive resource into an active driver of economic growth.
One of the most critical aspects of the Indian government’s approach to data sharing is its emphasis on privacy and user empowerment. The Consent Layer addresses long-standing concerns about data misuse and monopoly power by putting individuals in control of their data. Unlike traditional models where data is hoarded by corporations or governments, DEPA ensures that data remains the property of its creators – individuals.
This approach aligns with global trends in data governance, such as the European Union’s General Data Protection Regulation (GDPR) but adapts these principles to the unique needs of India’s digital ecosystem. By integrating privacy measures directly into the architecture of data sharing, the Indian government is setting a new standard for balancing innovation with ethical responsibility.
Challenges and the Road Ahead
While the Consent Layer and DEPA represent significant advancements, there are challenges to overcome. The regulatory framework around data sharing in India remains fragmented, with overlapping jurisdictions and a lack of clarity on key issues such as data ownership and liability. Additionally, widespread adoption of DEPA requires robust digital literacy and infrastructure, particularly in rural areas where internet penetration remains uneven.
To address these challenges, the Indian government is working on complementary policies such as the Digital Personal Data Protection (DPDP) Act, which aims to provide a comprehensive legal framework for data governance. By integrating DEPA with broader legislative and regulatory efforts, India can create a cohesive and forward-looking data economy.
A Vision for the Future
India’s approach to data sharing is not just about facilitating transactions or improving service delivery – it is about creating a data democracy. By empowering individuals with control over their data, the Indian government is fostering a culture of trust, transparency and collaboration. This not only enhances individual privacy but also unlocks new opportunities for innovation, economic growth, and social inclusion. As the Consent Layer evolves and DEPA expands across sectors, India has the potential to become a global leader in data governance. By combining technological innovation with ethical responsibility, India is demonstrating how data can be a force for good – empowering individuals, driving economic growth and building a more equitable digital future.
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