Innovative economy needs choices to process data

Introduction:

• Minister of State for Electronics and Information Technology and Skill Development and Entrepreneurship Rajeev Chandrasekhar announced changes in the data localization provision in the latest version of the Digital Personal Data Protection Bill. The changes aim to provide multiple choices to innovators and startups for accessing the best technology and pricing on storage.

Changes in Data Localization Provision:

• Data localization provision in the latest version of the Digital Personal Data Protection Bill has been changed.
• The government does not mandate all innovators and startups to only use data centres in India.
• The Centre has allowed the transfer of personal data to countries it notifies.
• Data fiduciary can use a data centre domiciled in the US, Japan or Korea as long as it respects the rights of the Indian citizen.
• Hardcore data localization will not be imposed as a condition.
• The changes aim to create a framework for every legislation that allows it to evolve.

Independence of the Data Protection Board:

• The board will be independent but will come under the scrutiny of an appeal process to ensure efficacy, responsiveness, and integrity.
• The judgments made by the board will be transparent and available in the public domain.
• The board will be run by independent members and not secretaries and joint secretaries of the government.

Angel Tax:

• The Minister said that the angel tax is an aberration and more reforms are needed.
• The Finance Minister is aware of the concern over the levy of angel tax on capital raised by unlisted firms from international investors.

Skilling Initiatives:

• The government aims to create a talent pool to address India’s own ambitions and those of what the world sees in us.
• By 2025 to 2026, the first signs of this work will bear fruit.

Conclusion:

• The changes in the data localization provision in the Digital Personal Data Protection Bill aim to provide multiple choices to innovators and startups for accessing the best technology and pricing on storage. The government aims to create a talent pool to address India’s own ambitions and those of what the world sees in us.