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Research Article

Living in a fragmented world: India’s data way

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Pages 154-176 | Published online: 13 Mar 2024
 

ABSTRACT

This article examines India’s treatment of data and its relationship with sovereignty. In the absence of international norms or standards, the article draws on the various data-related rules, regulations, and policies, the country’s international stance on data, and the developments in its ongoing journey to a privacy law to infer how the Indian government seeks to exercise sovereign control over Indian data. The article shows that India’s treatment of data is a lot more nuanced and mobile than otherwise suggested. Instead, it is driven by more by economic and security imperatives rather than the need for control over Indian data.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

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3. Srijan Shukla, “‘Data nationalism’ needed to combat misuse by tech firms, hostile countries: Mohandas Pai,” ThePrint, https://theprint.in/india/data-nationalism-needed-to-combat-misuse-by-tech-firms-hostile-countries-mohandas-pai/330977/ (accessed December 5, 2019).

4. Arindrajit Basu, “Sovereignty in a ‘datafied’ world: A framework for Indian diplomacy,” Observer Research Foundation, https://www.orfonline.org/expert-speak/sovereignty-datafied-world-framework-indian-diplomacy/ (accessed May 2, 2021.)

5. Vindu Goel, “On Data Privacy, India Charts Its Own Path,” New York Times, https://www.nytimes.com/2019/12/10/technology/on-data-privacy-india-charts-its-own-path.html (accessed December 10, 2019).

6. Anupam Chander and Haochen Sun, “Sovereignty 2.0,” Georgetown Law Faculty Publications and Other Works 2404 (2021), https://scholarship.law.georgetown.edu/facpub/2404/.

7. Anirudh Burman, “Resisting the Leviathan: The Key Change in India’s New Proposal to Protect Personal Data,” Carnegie India, https://carnegieindia.org/2022/11/28/resisting-leviathan-key-change-in-india-s-new-proposal-to-protect-personal-data-pub-88496 (accessed November 28, 2022).

9. Ministry of Law & Justice, “The Digital Personal Data Protection Act, 2023,” 11, https://www.meity.gov.in/writereaddata/files/Digital%20Personal%20Data%20Protection%20Act%202023.pdf

10. Note: based on interviews and closed-doors discussions with technology companies in India, the United States, Canada, and Asia in August 2023.

11. Note: based on discussions with European officials and two representatives of multilateral organizations that have long worked on the cross-border movement of data in August 2023.

12. David McCabe and Adam Satariano, “The Era of Borderless Data Is Ending,” New York Times, https://www.nytimes.com/2022/05/23/technology/data-privacy-laws.html (accessed May 23, 2022,).

13. Anirudh Burman, “Data Privacy,” Carnegie India, https://carnegieindia.org/2022/03/21/takeaways-from-2021-global-technology-summit-pub-86679 (accessed March 21, 2022).

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15. David Feith and Matt Pottinger, “The Most Powerful Data Broker in the World Is Winning the War Against the U.S.,” New York Times, https://www.nytimes.com/2021/11/30/opinion/xi-jinping-china-us-data-war.html (accessed November 30, 2021).

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17. “2021 National Trade Estimate Report on Foreign Trade Barriers” (The Office of the United States Trade Representative), https://ustr.gov/sites/default/files/files/reports/2021/2021NTE.pdf (accessed March 31, 2021).

18. Ibid.

19. Francesca Casalini, Javier López González, and Taku Nemoto, “Mapping Commonalities in Regulatory Approaches to Cross-Border Data Transfers,” OECD Trade Policy Papers, no. 248 (2021), https://doi.org/10.1787/ca9f974e-en.

20. William Drake, “Data Localization and Barriers to Cross-Border Data Flows Towards a Multitrack Approach” (White Paper, World Economic Forum), https://www3.weforum.org/docs/White_Paper_Data_Localization_Barriers_Cross-Border_Data_Flows_report_2018.pdf (accessed January 2018).

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22. Strategic Importance of Digital Economic Engagement in the Indo-Pacific, Committee on Foreign Affairs, 2022 (David Feith, Adjunct Senior Fellow, Indo-Pacific Security Program, Center for a New American Security); Strategic Importance of Digital Economic Engagement in the Indo-Pacific, Committee on Foreign Affairs, 2022 (Wendy S. Cutler, Vice President, Asia Society Policy Institute).

23. Casalini, González, and Nemoto, “Mapping Commonalities in Regulatory Approaches to Cross-Border Data Transfers”

25. Indian Telegraph (Amendment) Rules, 2007, https://dot.gov.in/sites/default/files/march2007.pdf.

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28. Sections 69, Indian Information Technology (Amendment) Act, 2008, https://www.meity.gov.in/writereaddata/files/it_amendment_act2008%20%281%29_0.pdf.

29. Information Technology (Procedure and Safeguards for Interception, Monitoring and Decryption of Information) Rules, 2009, https://dispur.nic.in/itact/it-procedure-interception-monitoring-decryption-rules-2009.pdf.

30. Information Technology (Procedure and Safeguard For Monitoring And Collecting Traffic Data Or Information) Rules, 2009, http://www.bareactslive.com/ACA/ACT649.HTM.

31. Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011, https://www.meity.gov.in/writereaddata/files/GSR313E_10511%281%29_0.pdf.

32. Rule 7, Information Technology (Reasonable security practices and procedures and.

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43. “Personal data protection bill to take care of India’s sovereign data concerns: Govt,” ET Telecom, https://telecom.economictimes.indiatimes.com/news/personal-data-protection-bill-to-take-care-of-indias-sovereign-data-concerns-govt/70408014 (accessed July 27, 2019).

44. Section 40 (1), Draft Personal Data Protection Bill, 2018, https://www.meity.gov.in/writereaddata/files/Personal_Data_Protection_Bill,2018.pdf.

45. Section 3 (29), Draft Personal Data Protection Bill, 2018, https://www.meity.gov.in/writereaddata/files/Personal_Data_Protection_Bill,2018.pdf.

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48. Section 41, Draft Personal Data Protection Bill, 2018, https://www.meity.gov.in/writereaddata/files/Personal_Data_Protection_Bill,2018.pdf.

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50. Madhulika Srikumar, Sreenidhi Srinivasan, DeBrae Kennedy-Mayo, and Peter Swire, “India-US Data Sharing for Law Enforcement: Blueprint for Reforms,” Observer Research Foundation and Cross-Border Requests for Data Project, Georgia Tech Institute for Information Security & Privacy, January 17, 2019, 39, https://www.orfonline.org/wp-content/uploads/2019/01/MLAT-Book-_v8_web-1.pdf.

51. “Data is the new oil, new gold,’ says PM Modi in Houston”

52. Mukesh Adhikary, “’Data is the new oil:’ Mukesh Ambani says global firms should not control India’s data,” Business Today, https://www.businesstoday.in/latest/economy-politics/story/data-new-oil-mukesh-ambani-says-global-firms-should-not-control-india-data-159818–2019-01-18 (accessed January 18, 2019).

53. Samir Saran, “3 reasons why data is not the new oil – and why this matters to India,” World Economic Forum, https://www.weforum.org/agenda/2019/10/3-reasons-why-data-is-not-the-new-oil-and-why-this-matters-to-india/ (accessedOctober 4, 2019); Bernard Marr, “Here’s Why Data Is Not The New Oil,” Bernard Marr & Co., https://bernardmarr.com/heres-why-data-is-not-the-new-oil/ (accessed July 2, 2021).

54. Feedback on Draft Personal Data Protection Bill, Ministry of Electronics & Information Technology, Government of India, https://www.meity.gov.in/content/feedback-draft-personal-data-protection-bill (accessed August 14, 2018).

55. Basu, Hickok, Chawla, “The Localisation Gambit”

56. Personal Data Protection Bill, 2019, Pub. L. No. 373 of 2019, http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/373_2019_LS_Eng.pdf.

57. Sections 33 and 34, Personal Data Protection Bill, 2019, Pub. L. No. 373 of 2019, http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/373_2019_LS_Eng.pdf.

58. Sections 33 (2), Personal Data Protection Bill, 2019, Pub. L. No. 373 of 2019, http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/373_2019_LS_Eng.pdf.

59. Section 35, Personal Data Protection Bill, 2019, Pub. L. No. 373 of 2019, http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/373_2019_LS_Eng.pdf.

61. Rohin Garg and Simrandeep Singh, “Dissent is democratic: Looking at the dissent notes in the report of the JPC #SaveOurPrivacy,” Internet Freedom Foundation, https://internetfreedom.in/pdpb-jpc-report-dissent-notes/ (accessed December 23, 2021).

62. “Govt withdraws Data Protection Bill, 2021, will present new legislation,” Business Standard, https://www.business-standard.com/article/economy-policy/centre-withdraws-personal-data-protection-bill-2019-to-present-new-bill-122080301226_1.html (accessed August 3, 2022).

64. Varghese K. George and Yuthika Bhargava, “Exclusive Ashwini Vaishnaw interview | Data protection Bill likely in Budget Session,” The Hindu, https://www.thehindu.com/opinion/interview/ashwini-vaishnaw-interview-new-draft-data-protection-bill-to-be-out-soon-for-consultation/article65822798.ece (Accessed August 28, 2022).

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67. Section 91 (2), Personal Data Protection Bill, 2019, Pub. L. No. 373 of 2019, http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/373_2019_LS_Eng.pdf.

68. Aashish Aryan, “Concern areas in Parliamentary panel report on data protection bill: Non-personal info, localisation need,” The Indian Express, https://indianexpress.com/article/technology/tech-news-technology/concern-areas-in-parliamentary-panel-report-on-data-protection-bill-non-personal-info-localisation-need-7680933/ (accessed December 20, 2021).

69. Deeksha Bhardwaj, “Non-personal data likely to be dropped from new data law,” Hindustan Times, https://www.hindustantimes.com/india-news/nonpersonal-data-likely-to-dropped-from-new-data-law-101655752906037.html (accessed June 21, 2022).

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80. Companies (Accounts) Rules, 2014, https://www.mca.gov.in/Ministry/pdf/NCARules_Chapter9.pdf.

81. “National Telecom M2M Roadmap,” Ministry of Communications and Information Technology, Government of India, May 2015, https://dot.gov.in/sites/default/files/National%20Telecom%20M2M%20Roadmap.pdf.

82. IRDAI (Outsourcing of Activities by Indian Insurers) Regulations, 2017, https://www.irdai.gov.in/admincms/cms/frmGeneral_Layout.aspx?page=PageNo3149&flag=1.

84. RBI Notification on the Storage of Payment System Data, 2018, https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=11244.

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87. Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, https://mib.gov.in/sites/default/files/IT%28Intermediary%20Guidelines%20and%20Digital%20Media%20Ethics%20Code%29%20Rules%2C%202021%20English.pdf.

88. Malavika Raghavan, “India’s New Intermediary & Digital Media Rules: Expanding the Boundaries of Executive Power In Digital Regulation,” Future of Privacy Forum, https://fpf.org/blog/indias-new-intermediary-digital-media-rules-expanding-the-boundaries-of-executive-power-in-digital-regulation/ (accessed June 10, 2021).

89. A serving Japanese official, interview with the authors, May 2021.

90. “G20 Ministerial Statement on Trade and Digital Economy,” https://www.meti.go.jp/press/2019/06/20190610010/20190610010–1.pdf (accessed June 9, 2019).

91. A Japanese academic involved in digital policy, interview with the authors, May 2021.

93. Leaders’ Special Event on Digital Economy, https://www.mofa.go.jp/policy/economy/g20_summit/osaka19/en/special_event/.

95. A Japanese official in the Ministry of Economy, Trade and Industry, Government of Japan, interview with the authors, April 2021.

96. Private roundtable on Technology Data and the Future of U.S. India Relations, Carnegie India’s Global Technology Summit 2020, December 14–18, 2020; Private roundtable on Localization and Internationalization of Data: Getting the Balance Right, Carnegie India’s Global Technology Summit 2020, December 14–18, 2020; Private roundtable on Data Access and Data Transfers, Carnegie India’s Global Technology Summit 2019, December 5, 2020.

97. Six European Commission officials, interview with the authors, June 14, 2021.

98. Ibid.

99. Anirudh Burman and Upasana Sharma, “How Would Data Localization Benefit India?” Carnegie India, April 2021, https://carnegieendowment.org/files/202104-Burman_Sharma_DataLocalization_final.pdf.

100. Police officers and intelligence officials, interview with the authors; Prateek Jha and Smriti Parsheera, “Cross-Border Data Access for Law Enforcement: What Are India’s Strategic Options?,” Carnegie India, https://carnegieindia.org/2020/11/23/cross-border-data-access-for-law-enforcement-what-are-india-s-strategic-options-pub-83197 (accessed November 23, 2020).

101. Private roundtable on Technology Data and the Future of U.S. India Relations, Carnegie India’s Global Technology Summit 2020, December 14–18, 2020; Private roundtable on Localization and Internationalization of Data: Getting the Balance Right, Carnegie India’s Global Technology Summit 2020, December 14–18, 2020; Private roundtable on Data Access and Data Transfers, Carnegie India’s Global Technology Summit 2019, December 5, 2020

102. Private roundtable on Technology Data and the Future of U.S.-India Relations, Carnegie India’s Global Technology Summit 2020, December 14–18, 2020; Private roundtable on Localization and Internationalization of Data: Getting the Balance Right, Carnegie India’s Global Technology Summit 2020, December 14–18, 2020; Private roundtable on Data Access and Data Transfers, Carnegie India’s Global Technology Summit 2019, December 5, 2020; Burman and Sharma, “How Would Data Localization Benefit India?”

103. Member of the JPC from the opposition, interview with the authors, November 2022.

105. A leading public policy head of one of the largest chambers of commerce in the world, interview with the authors, January 2020.

106. Sreenidhi Srinivasan and Osho Chhel, “India’s Proposed Data Protection Law and an India-US Executive Agreement Under the CLOUD Act,” Observer Research Foundation, https://www.orfonline.org/research/indias-proposed-data-protection-law/ (accessed June 3, 2022).

107. A leading lawyer in a big tech firm working with the White House, interview with the authors, January 2020.

108. Officials in the U.S. State Department and officials in the U.S. Federal Trade Commission, interview with the authors, June 2021.

109. “Government withdraws Data Protection Bill, 2021,” Economic Times, https://economictimes.indiatimes.com/tech/technology/government-to-withdraw-data-protection-bill-2021/articleshow/93326169.cms (accessed August 3, 2022).

111. For an analysis, see Rahul Matthan, “Our data protection bill got more flak than it deserved,” Mint, https://www.livemint.com/opinion/columns/our-data-protection-bill-got-more-flak-than-it-deserved-11669147840550.html (accessed November 23, 2022,).

112. The Digital Personal Data Protection Bill, 2022.

113. Samir Saran and Anirban Sarma, “India will prioritise data for development at G20,” Observer Research Foundation, https://www.orfonline.org/research/india-at-g20-will-herald-data-for-development/ (accessed December 14, 2022).

114. “‘Not good’ for govt to share data in aggregated form: Amitabh Kant,” The Times of India, https://timesofindia.indiatimes.com/business/india-business/not-good-for-govt-to-share-data-in-aggregated-form-amitabh-kant/articleshow/96192197.cms (accessed December 13, 2022,).

115. “African Union formally joins G20,” Hindustan Times, https://www.hindustantimes.com/india-news/african-union-formally-joins-g20-pm-modi-calls-for-trust-and-reliance-101694237313601.html (accessed September 9, 2023).

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