The Aakhya Weekly #24 | Data Protection, Round 4
The Aakhya Weekly #24 | Data Protection, Round 4
In Focus: Data Protection Bill unveiled for public scrutiny
The Ministry of Electronics and Information Technology (MeitY) has published the much-awaited Digital Personal Data Protection Bill, 2022 (DPDP Bill) for public comments. This is the fourth attempt by the Government of India to draft a data protection law (the first being in 2018) for the regulation of processing of citizens’ data. As India makes giant strides in the digital age with over 760 million active internet users, many of whom are young people, it becomes even more important to ensure a safe, open, and trusted internet with protocols for processing of digital personal data in line with the fundamental rights and freedoms guaranteed by the Constitution.
The DPDP Bill differs from its predecessor drafts in that it has been constructed in plain and simple language and limits itself to digital personal data (which determines the identity of an individual), leaving anonymized or ‘non-personal’ data out of its scope. The Bill requires Data Fiduciaries (entities which process the data of individuals, or Data Principals) to provide notice in clear language to Data Principals enclosing a description of the personal data and the purpose for its processing. It also requires Data Fiduciaries to provide Data Principals with the option of accessing such a notice in either English or any of the twenty-two Eighth Schedule languages. The DPDP Bill also imposes the primary duty on the Data Fiduciary for ensuring adequate safeguards, notifying breaches and general compliance, regardless of non-compliance by Data Principals. More crucially, it sets out regulations for processing children’s data and requires Data Fiduciaries to obtain prior consent from parents or lawful guardians.
However, the DPDP Bill retains the distinct recognition of ‘Significant Data Fiduciaries’, who are identified based on the volume of data that they process, and who would be tasked with additional obligations such as appointment of a Data Protection Officer and an independent data auditor for undertaking data protection impact assessments.
Some of the other salient features of the Bill are as follows:
Data localisation: The Data Bill makes significant allowances relating to cross-border flow of data – a big departure from the previous Bill (Data Protection Bill, 2021) which mandated local storage of both personal and non-personal data within the geographical territory of India. Under the Data Bill, cross-border data flows will be permitted with friendly regions as notified by the Central Government.
Penalties: The Bill prescribes heavy fines (as high as Rs. 250 Crore) against Data Fiduciaries for violation of its provisions, as provided in Schedule 1. Failure to provide adequate safeguards, failure to notify the Data Protection Board in case of data breach, non-compliance with obligations relating to children, and additional non-compliance by ‘Significant Data Fiduciaries’ are some of the actions that incur penalties. Aside from payment of fine, no other penalties have been prescribed. Section 25 empowers the Data Protection Board to impose financial penalties up to Rs. 500 Cr in case of a non-compliance by a Data Fiduciary that it determines as being “significant”.
Exemptions for State agencies: The draft Bill retains exemptions for “any instrumentality of the State” in the interests of India’s sovereignty and integrity and related qualifiers. The term “national security” has been replaced with “security of the State”.
Exemptions for start-ups and small businesses: The Bill provides for the Central government to notify exemptions for a class of Data Fiduciaries “having regard to the volume and nature of data processed.”
Deemed consent: The draft Data Bill envisages several situations in which a Data Principal is deemed to have given consent for their personal data to be processed (e.g. in case of a medical emergency, one will be deemed to have given consent for their personal data to be processed). In such cases, Data Fiduciaries are not required to notify Data Principals for use of their data.
Comments on the draft Bill may be submitted to MeitY by 17 December 2022.
Tracking the G20
Days ahead of taking over the G20 Presidency formally, the government plans to fly diplomats from all missions of G20 countries, invitees and United Nations agencies, to the Andaman Islands for a special briefing by the Ministry of External Affairs (MEA) and the G20 Secretariat. The diplomats will pitch in their ideas to build the policy agenda for the event on various issues, including trade and investment, climate change, food and energy security and health to India’s G20 leadership, including ‘Sherpa’ Amitabh Kant, ‘Sous Sherpa’ Abhay Thakur, and the G20 National Coordinator, former Foreign Secretary Harsh Shringla.
According to ORF, with the world in extreme geopolitical turmoil, threats to multilateralism, and the rise of India’s clout and credibility internationally, India’s G20 Presidency may prove to be key in shaping the post-pandemic world.
Top Stories of the Week
Health Ministry releases its suicide prevention strategy
The Health Ministry has published the National Suicide Prevention Strategy, which aims to reduce deaths due to suicide by 10% by the year 2030. Suicide is a significant concern for India; every year, over a lakh Indians take their own lives. In 2021, of every one lakh people in the country, 12 committed suicide.
To address this pressing concern, the government intends to collaborate with entities across sectors, setting out a time-bound action plan to meet its targets. As priorities, it intends to restrict people’s access to means of committing suicide, strengthen the country’s mental health infrastructure, sensitise the population through media channels and improve its capacity for surveillance of suicides. To meet these goals, it sets out various action items, and sets out clear timelines for them to be achieved.
COP27 closes with the announcement of a Climate Fund for poor countries
The United Nations Climate Change Conference COP27 closed on 20th November 2022 with a reaffirmation of global commitment to limit global warming to 1.5 degrees celsius above pre-industrial levels by 2030. It concluded with a breakthrough resolution to the decade-long debate over restrictions on greenhouse gas emissions by developing and developed nations across the globe - a loss and damage fund for poor and vulnerable nations affected by climate disasters. The fund would support countries experiencing the effects of climate change, such as Somalia, where more than seven million people are facing hunger from an ongoing drought, or Pakistan, where floods this year caused around US$30 billion worth of damage.
The deal marked a massive success for small islands and other vulnerable nations in winning over the 27-nation European Union and the United States, which had long resisted the idea for fear that such a fund could open them to legal liability for historic emissions. However, the agreement clarifies that such a liability would be falling on financial institutions, assuaging many concerns. The announcement is met with equal parts horror and celebration bringing up once again the vital question of what the conference is ultimately aimed at. The fine print of the agreement is yet to be drafted and would be discussed at next year’s conference, leaving us with much to look forward to.
This Week in Policy
Macroeconomics and Taxation
The Finance Minister, Smt. Nirmala Sitharaman, held the first pre-budget consultation meeting, where various industry bodies presented their recommendations for the upcoming Union Budget for the year 2023-24.
Labour
The Government has launched the ‘Karmayogi’ online platform, which seeks to build capacity in India’s civil services by providing training to government employees through online courses. The portal is part of the ‘Mission Karmayogi’ launched by the Government in 2020, which intends to modernise and increase the competence of civil servants.
Agriculture and FMCG
India’s cotton exports stall as farmers are delaying sale of their harvest hoping for higher prices in coming months. The limited supplies are keeping local prices significantly above the global benchmark, making overseas sales unviable.
Number of beneficiaries of the PM-KISAN scheme cross 10 crore, increasing more than three-fold from the first instalment period in early 2019. Under the scheme, the Centre provides an income support of Rs 6,000 per year in three equal instalments to all land holding farmer families.
Healthcare
The Haryana Government has launched the Comprehensive Health Insurance of Antyodaya Units scheme, or ‘CHIRAYU Haryana’, which seeks to extend the benefits of the Ayushman Bharat scheme to an additional 29 lakh beneficiaries.
The packaging of several commonly sold drugs shall be required to carry a QR code from August 2023, pursuant to a Health Ministry notification. The QR code shall carry several details regarding the drug, including the name and address of the manufacturer, the batch number and its expiry date, among others.
Foreign affairs
Ministry of Home Affairs takes up the issue of Kuki-Chin Bangladeshi refugees (who have fled to Mizoram) with Ministry of External Affairs
India and Venezuela conducted the fourth round of Foreign Office consultations at Caracas, where they reviewed bilateral ties and discussed a plethora of issues on various sectors such as health and pharmaceuticals, trade, Ayurveda and yoga, science and technology, climate change, and so on.
Technology, Media and Telecommunications
MeitY Minister Ashwini Vaishnaw has assured stakeholders that TRAI will continue to play a pivotal role in formulating regulations in the telecom sector and that a “big portion” of the Telecom Bill’s implementation will be undertaken by the regulator itself.
After an elaborate consultation process, the Telecom Regulatory Authority of India (TRAI) has issued amendments to the New Tariff Order (NTO), which is being seen as a middle path for the benefit of all stakeholders - broadcasters, cable operators, and consumers.
International trade and commerce
India and the Gulf Cooperation Council are set to launch negotiations for a free trade agreement on 24 November 2022.
With the Australia-India FTA expected to come into force from 1 January 2023, the Government of India pushes exporters to come up with a strategy to reap the benefits from the trade deal.
Banking, Finance and Insurance
Sebi proposes to do away with share buybacks through open market transactions in a phased manner, enhance the threshold for companies to buyback shares from their free reserves, reduce the cooling-off period between two buybacks under the tender route and shift the tax incidence fully to the share-tendering shareholders rather than the companies concerned.
RBI announces that overnight balances held by banks with the RBI under the Standing Deposit Facility (SDF) will be eligible as level-1 high quality liquid assets for the computation of Liquidity Coverage Ratio
Manufacturing
Solar Energy Corporation of India is seeking bids from solar manufacturers for $2.4 billion in financial incentives to boost domestic manufacturing.
Aimed at developing electric vehicle batteries suited to the needs of the Indian population, the Department of Science and Technology is collaborating with the Centre of Science and Environment.
Retail and e-commerce
Expected to come into effect from November 25, the Bureau of Indian Standards has prepared a framework of standards titled, “Indian Standard (IS) 19000:2022” to curb fake reviews on e-commerce websites.
Logistics and Infrastructure
Identifying infrastructural gaps limiting logistics movement, six central ministries have submitted their Sectoral Plans for Efficient Logistics (SPEL) under the National Logistics Policy.
India proposes to extend its waterways connectivity project to South-east Asia up to Thailand, covering over 5,000kms to benefit shippers, logistics players and cargo owners.
Sustainability
Danish Energy Agency and the Indian Ministry of New and Renewable Energy (MNRE) publish a conceptual plan with a pipeline identifying 15 locations off the coast of Tamil Nadu and Gujarat for offshore wind projects in India. This comes right on the heels of MNRE releasing the first draft offshore wind tender for stakeholder consultation.
Department of Science and Technology to partner with Center for Science and Environment to create a platform for development of new EV batteries suited for Indian conditions
Upcoming Events
Changing Landscapes and Navigating New Contours in Arbitration
November 25 | The Lalit, New Delhi
The Chartered Institute of Arbitrators India - Young Members Group is organising a conference on ‘changing landscapes and navigating new contours in arbitration’ on November 25th at The Lalit, New Delhi. The conference will have sessions on the ‘rise of ESG and the role of arbitration’, and ‘arbitration and insolvency: intersected or independent’. Justice Dipak Misra, former Chief Justice of India, will give the valedictory address. More Information
India’s Trade Policy in the 21st Century
December 2 | Virtual
The Centre for Social and Economic Progress (CSEP) is organising a flagship dialogue on the book – India’s Trade Policy in the 21st Century by Amita Batra on December 2nd in a virtual format. India’s share in global goods trade has remained low and stagnant over almost the entire two-decade period in this century. This book brings forth India’s weakness in recognising the importance of trade policy instruments that have been particularly facilitative of global value chain participation. In particular, the book highlights India’s inability to utilise new age preferential trade agreements to enhance its global trade participation as also its proximity to a regional GVC hub. Rakesh Mohan, member of the Prime Minister’s Economic Advisory Council (EAC-PM) will be the moderator for the dialogue. More Information | Registration Link
Decolonising India’s Legal System
December 2 | India International Center, New Delhi
The Vidhi Centre for Legal Policy is organising its 6th annual lecture on on December 2nd at the India International Center, New Delhi. Each year, this lecture focuses on a contemporary policy issue. This year, Dr. Bibek Debroy, Chairman, Economic Advisory Council to the Prime Minister of India, will speak on ‘Decolonising India’s Legal System’. Laws and practices that are essentially colonial need to be reformed, institutions that had been designed to further the colonial agenda need to be re-oriented, and colonial ideology that pervades our thinking needs to be changed. The lecture will be followed by a Q&A session moderated by Dr. Arghya Sengupta, Founder and Research Director of the Vidhi Centre for Legal Policy. More Information | Registration Link
A Few Good Reads
In a time when historical figures have become hostage to the day’s political currents, it is important to remember them as their peers did. Read Bhagat Singh’s views on Jawaharlal Nehru and Subhash Chandra Bose.
With FTX collapsing, the effective altruism propagated by its founder, Sam Bankman-Fried, has received a bad rap from many quarters. For a thorough examination of its philosophical weaknesses, however, see Samuel Hammond’s brilliant piece.
India habitually avoids taking a side in international politics, instead acting as its own “pole”, as Happymon Jacob explains.
Is India’s public policy failing its older workers? Sujay Pan explores the gaps.
Dr. Nazir Mahmood writes of India’s series of constitutional crises through the 1970s.
Tweets of the Week
Rahul Sagar recaps how a small confusion caused massive political turmoil:
Sanjeev Sanyal, member to the Prime Minister’s Economic Advisory Council, examines India’s falling rankings on global indices in this thread:
Take a journey through some of the country’s most beautiful rail routes:
Key Notifications
TRAI notifies Amendments to the Regulatory Framework for Broadcasting and Cable Services.