Navigating the Draft National Data Governance Framework Policy
Data has become a critical asset for the advancement of a nation’s economic, social, and technological development. India’s emergence as a global digital economy hub makes it necessary to create a robust framework that addresses the challenges and opportunities of digital transformation. The Indian government introduced the Draft National Data Governance Framework Policy in 2022, aiming to create a comprehensive data handling and governance framework. This policy draft addresses key challenges in data management, privacy, and digital economy growth. As per the recent media reports, the Draft National Data Governance Policy so prepared is under the finalisation stage, the government specified in its implementation document for the Budget 2023-24 announcement. The policy also aims to address the country's AI adoption and the issue of lack of datasets by providing widespread access to anonymized data.
Background and Need for the Policy
India has a robust digital economy with its adoption of the Digital India Initiative, Aadhaar digital identification, UPI for seamless payments and many more. In India, 751.5 million people connect to the internet, and is home to 462.0 million social media users in January 2024, equivalent to 32.2% of its total population (Data Reportal 2024). This has brought challenges including data privacy concerns, cybersecurity threats, digital exclusion, and a need for better regulation frameworks. To overcome them, the Draft National Data Governance Policy has been designed to provide institutional frameworks for data rules, standards, guidelines, and protocols for the sharing of non-personal data sets in a manner that ensures privacy, security, and trust so that they remain secure, transparent, and accountable.
Objectives omphasizesf the Framework
The objective of the Framework Policy is to accelerate Digital Governance in India. The framework will standardize data management and security standards across the Government. It will promote transparency, accountability, and ownership in Non-Personal data and dataset access and build a platform to receive and process data requests. It will also set quality standards and promote the expansion of the datasets program and overall non-personal ecosystem. Further, it aims to build India’s digital government goals and capacity, knowledge, and competency in Government departments and entities. All this would be done while ensuring greater citizen awareness, participation, and engagement.
Key Provisions of the Draft Policy
The Draft Framework Policy aims to establish a cohesive digital governance ecosystem in India that balances the need for data utilization with protecting citizens' privacy rights. It sets up an institutional framework of the "India Data Management Office (IDMO) set up under the Digital India Corporation (DIC) which will be responsible for developing rules, standards, and guidelines under this Policy.
The key provisions of the framework policy include:
- Promoting interoperability among government digital platforms, ensuring data privacy through data anonymization and security, and enhancing citizen access to government services through digital means.
- The policy e the creation of unified digital IDs, a standardisation in digital processes, and data-sharing guidelines across ministries to improve efficiency.
- It also focuses on building digital infrastructure, such as cloud services and data centres in order to support e-governance initiatives.
- Furthermore, it encourages public-private partnerships and sets guidelines for accountability and transparency in digital governance.
Implications and Concerns of the Framework
- The policy potentially impacts data sharing in India as it mentions data anonymization. The scale of data that would need to be anonymised in India is at a very large scale and it could become a potential challenge to engage in.
- Data localization and cross-border transfers have raised concerns among global tech companies and trade partners. They argue that such requirements could increase operational costs and hinder cross-border data flows. Striking a balance between protecting national interests and facilitating business operations remains a critical challenge.
- Another challenge associated with the policy is over-data centralization under the IDMO and the potential risks of government overreach in data access.
Key Takeaways and Recommendations
The GDPR in the European Union and the Digital Personal Data Protection Act passed in 2023 in India and many others are the data privacy laws in force in different countries. The policy needs to be aligned with the DPDP Act, 2023 and be updated as per the recent developments. It further needs to maintain transparency over the sharing of data and a user’s control. The policy needs engagement with industry experts, privacy advocates, and civil society to ensure a balance of innovation with privacy and security.
Conclusion
The Draft National Data Governance Framework Policy of 2022 represents a significant stage in shaping India's digital future. It ensures the evolution of data governance evolves alongside technological advancements. The framework policy seeks to foster a robust digital ecosystem that benefits citizens, businesses, and the government alike by focusing on the essentials of data privacy, transparency, and security. However, achieving this vision requires addressing concerns like data centralisation, cross-border data flows, and maintaining alignment with global privacy standards. Continued engagement with stakeholders and necessary updates to the draft policy will be crucial to its success in balancing innovation with user rights and data integrity. The final version of the policy is expected to be released soon.
References
- https://meity.gov.in/writereaddata/files/National-Data-Governance-Framework-Policy.pdf
- https://datareportal.com/?utm_source=DataReportal&utm_medium=Country_Article_Hyperlink&utm_campaign=Digital_2024&utm_term=India&utm_content=Home_Page_Link
- https://www.imf.org/en/Publications/fandd/issues/2023/03/data-by-people-for-people-tiwari-packer-matthan
- https://inc42.com/buzz/draft-national-data-governance-policy-under-finalisation-centre/
- https://legal.economictimes.indiatimes.com/news/industry/government-unveiled-national-data-governance-policy-in-budget-2023/97680515