Data Privacy Laws: Much Needed In The Digital Realm

Having earned itself the moniker of "oil of the 21st century", data and the ability of an organisation to leverage data is no longer a key differentiator, rather, it has become an imperative. However, as the availability and use of data becomes ubiquitous, it is giving rise to a raging debate on data privacy. Corporations are now focusing on harnessing data in order to provide customers with more customised solutions that can better serve an individual’s idiosyncratic needs. On the other hand, the personal data of customers and internet users is exposed to the threat of theft and misuse. There are concerns that stringent data privacy laws might curtail an organisation’s ability to provide these customised solutions that the consumer today has come to demand. Currently, there are 500 million internet users in the country. These users have large digital footprint and unleash reams of data points into the digital realm. The key question now is, “how is the owner of this data and who is responsible for its safety and correct use?”.

Data privacy laws in India

Currently, the Information Technology Act is the only legal framework available for organisations to integrate into their digital framework. However, the Data Protection Bill of 2019 (“PDPB”) is likely to deal with all issues related to data privacy in the country. It aims at establishing a framework for creating a robust ecosystem where data privacy is maintained without completely culling out the flexibility that organisations require to innovate. The bill relates to how companies can collect, store and utilise the data of millions of Indians. While the e-commerce and start-up ecosystem in India is bracing itself for what lies ahead in terms of regulatory and legal compliance, it is important to understand that such laws are designed to protect the consumers and ensure that data is not harnessed beyond its intended use. Rather than curtail innovation, such laws can likely accelerate the growth of the digital economy by addressing the trust deficit that is often associated with technological innovations.
India is not only on its way to becoming a $5 trillion economy it is also well on its path to becoming a digital economy. Over the last few years, various government-driven initiatives such as Make in India and Digital India have attempted to put India on the digital map. Now, with the introduction of robust data privacy and security laws, the country will successfully close this digital loop to ensure that the entire ecosystem is well protected and can flourish over the long-term.