Role of digitization in India’s economy: Data marketplaces: the next frontier

Source: The post role of digitization in India’s economy has been created, based on the article “Data marketplaces: the next frontier” published in “The Hindu” on 21st March 2024.

UPSC Syllabus Topic: GS Paper 2- governance- e-governance and GS Paper3- economy

News: The article discusses how digitizing government operations and using non–personal data (NPD) can boost India’s economy. However, India lacks strong rules for managing this data.

For details information on Digital Economy read Article1, Article 2

What is the role of digitization in India’s economy?

Boosting GDP: Digitization can potentially add $450-500 billion to India’s GDP by 2025, playing a crucial role in economic growth.

Government Operations: Rapid digitization in government processes enhances efficiency and transparency.

Utilizing Citizen Data: Government’s collection and use of Non-Personal Data (NPD) aid in improving public services and decision-making.

Predictive Analytics: Applying AI and analytics to NPD helps in forecasting in areas like meteorology, infrastructure, and employment.

What are the different types of data collected?

Personal Data: This type involves identifiable information about individuals. It can be used to directly map an individual, like names or identification numbers.

Non-Personal Data (NPD): This is the primary type of data collected by the government. It excludes personal identifiers.

Data Use: Both types of data are crucial for governmental planning and public service delivery, with NPD serving as a significant resource for ‘public good’ applications.

What are the major concerns related to regulations for non-personal data in India?

Lack of Enforceable Regulations: Current policies like the National Data Governance Framework Policy offer only limited guidance without strict legal enforcement.

Risk of De-anonymisation: There’s concern about the potential to identify individuals from NPD, compromising privacy.

Absence of Central Regulatory Authority: No dedicated body exists to oversee NPD usage and sharing.

Unclear Ownership and Sharing Mechanisms: Ambiguity in who owns NPD and how it should be shared among stakeholders.

Vulnerability to Misuse by Big Tech: Unregulated NPD could unfairly benefit large corporations, leading to privacy breaches.

Inefficiencies in Data Exchange: The current approach to data sharing is not optimized, hindering the full utilization of NPD in decision-making and public service enhancement.

What steps are taken to regulate the collection of data?

Regulation in India

National Data Governance Framework Policy (NPD Framework): Introduced by the Ministry of Electronics and Information Technology (MeiTY) to guide the use of NPD.

Expert Committee Recommendations: Led by Kris Gopalakrishnan, focusing on issues like de-anonymisation risks and data sharing mechanisms.

State-Level Initiatives: For example, the agriculture data exchange in Telangana, and the India Urban Data Exchange by the Ministry of Housing & Urban Affairs with the Indian Institute of Science.

Global Efforts

Australia: Implemented data exchange frameworks and protocols in various sectors like housing, employment, and agriculture.

United Kingdom: Established specific data exchanges to address unemployment and other social issues.

Estonia: Known for its advanced digital governance, Estonia has developed efficient data exchange systems.

Question for practice:

Examine the current state of regulations for non-personal data in India and the steps taken to address concerns regarding its collection and usage.