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Concerns Over India's DPDP Rules UPSC NOTE

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  Overview of the Digital Personal Data Protection (DPDP) Rules The Ministry of Electronics and Information Technology released draft rules...

 Overview of the Digital Personal Data Protection (DPDP) Rules

  • The Ministry of Electronics and Information Technology released draft rules for the DPDP Act, 2023, on January 3, 2025, 16 months after the law was introduced.

  • The government is seeking feedback on these rules, but public disclosure and counter-comments are restricted.

  • Critics argue the rules, combined with the DPDP Act, do not provide a comprehensive data privacy framework and suggest scrutiny by a parliamentary committee.

Data Localisation Mandate

  • The draft rules propose a data localisation mandate, which goes beyond the original law’s scope.

  • Data localisation limits data flow outside of India and would create a committee to decide what data cannot be exported.

  • Significant data fiduciaries (e.g., Meta, Google, Amazon) will be affected based on the volume and sensitivity of the data they process.

  • This mandate stems from challenges faced by law enforcement in accessing cross-border data and follows a similar move in 2018 by the Reserve Bank of India for payment data.

  • The government plans to give companies a two-year period to comply and establish local data storage systems.

Challenges for Businesses

  • Data localisation could create operational difficulties for both large tech companies and start-ups, particularly in managing and segmenting data across different data centers.

  • This could increase operational costs and disrupt business operations, according to experts like Aparajita Bharti.

Concerns Over Executive Overreach

  • Section 36 of the DPDP Act and Rule 22 give the government the power to demand any data from companies for national security reasons, raising concerns of excessive government control.

  • There are fears that these powers could be misused for surveillance or political purposes, potentially undermining privacy rights.

  • The provisions might also require companies to compromise end-to-end encryption of messages, a concern previously raised by WhatsApp.

  • Critics argue that the government’s broad discretion lacks adequate safeguards, making it susceptible to misuse, and may negatively impact commercial interests.

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Concerns Over India's DPDP Rules UPSC NOTE
Concerns Over India's DPDP Rules UPSC NOTE
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