DPDP Rules Won't Stifle Innovation Like European Laws, Says Ashwini Vaishnaw

The government of India unveiled long-awaited regulations for the protection of personal data on Friday, highlighting a less stringent approach than its European counterparts, in a move that could drastically alter the country's digital landscape.

India's Minister of Electronics and Information Technology, Ashwini Vaishnaw, defended the 16-month lag between the Digital Personal Data Protection Act's passage and the release of its implementing regulations, claiming that the government continued to prioritise digital transformation despite the national elections that took place during that time.

In an industry interview, Vaishnaw stated that the strict laws that have hindered innovation in Europe would not be repeated here.

The draft regulations, which are available for public comment until February 18, seek to balance user privacy rights with industry requirements. They come at a time when one of the biggest tech sectors in the world, India, has been eagerly awaiting advice on compliance standards.

The guidelines, which are written in simple terms and include examples, specify security precautions for processing and storing data. According to Vaishnaw, the timeframe was created in conjunction with industry stakeholders and will give companies two years to attain complete compliance.

One noteworthy clause uses existing infrastructure to construct a digital token system that requires parental consent for children's data. Vaishnaw stated that there is a serious risk of injury to children and that we need to take the appropriate safety measures.

The rules also grant the central government authority to regulate international data transfers, aligning with existing regulations like the Reserve Bank of India's requirement for domestic storage of financial data.

Government entities providing public services received certain exemptions, though Vaishnaw emphasised that the law's fundamental principles apply broadly. If consent has been given for one government service," he said, it shouldn't need to be repeated for another.

The approach marks the nation's distinct vision for data protection, as it seeks to protect consumer privacy while maintaining its competitive edge in the global digital economy.