Data opportunity at the G20

Source: The post is based on the article “Data opportunity at the G20” published in The Hindu on 18^th August 2022.

Syllabus: GS 2 – Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Relevance: About regulating data within territories.

News: The global politics of data is rapidly evolving. Leading and emerging digital economies like the European Union (EU), the U.S., India, Indonesia, and South Africa all strive to protect, monetise, and leverage data collected within their territories for domestic purposes.

Note: With the proposed Data Act, the EU hopes to become an unparalleled data power by creating a single data market, setting robust standards and deploying the EU’s collective data for their own use.

Why do the nations want to regulate data within territories?

According to the Information Technology and Innovation Foundation (ITIF), data localisation laws have more than doubled from 2017 to 2021. This is because,

1) Increasing privacy and security concerns coupled with economic interests, 2) The sheer amount of data being generated and shared globally and its implications on global trade and commerce forced nations to govern and restrict cross-border data flows, 3) States seek and want increasing levels of regulatory control over data.

Why is G-20 an ideal place to discuss and regulate data within territories?

The G-20 appears as a viable platform to discuss and regulate data because, a) Converging positions on data governance amongst major G-7 powers and emerging economies as the state finds a greater role in regulating data, b) G-20’s track record as the apex forum to discuss global economic issues gives it legitimacy, c) The G-20 platform comprises of top (digital) economies, d) The G20 does not create binding rules but serves as a platform to catalyse and inject new thinking around critical current issues.

How does India aim to regulate data within its territory?

Since 2017, India has attempted to incubate governance of non-personal data, personal data, e-commerce regulation and artificial intelligence (AI) with a preference to harness “India’s data for India’s development.”

Hence, one can assume that India was way ahead of the ‘data sovereignty’ curve.

What should be done to regulate data within India’s territory?

1) The Indian government should present a holistic agenda to G-20 which embeds data collection and sharing within a broader framework that prioritises digital security, innovation, and citizen rights, 2) The Reserve Bank of India’s data localisation directive has been in place for four years now. An empirical assessment of how this has impacted both start-ups, big technology companies, and users could serve as a useful example.

3) India’s digital economy stewardship must transcend data localisation by highlighting best practices on data protection, competition law, etc both in India and other G20 countries, 4) India should consider redrafting the Personal Data Protection Bill with a ‘more comprehensive framework’ as an urgent domestic priority.