DATA PROTECTION POLICY OF INDIA AND ITS IMPLICATIONS ON INNOVATION AND INVESTMENT: A STUDY IN REFERENCE TO DATA PROTECTION BILL 2019

3 Amit Kumar Kashyap

Law - Institute of Law - Nirma University

Abstract

Data is one of the most valuable assets in our current global economy. The data revolution is similar to the game-changing industrial revolution in spurring innovation by leaps and bounds. Data is the new fuel for the business. The innovation boom can be attributed to the freedom that the internet granted by breaking down global barriers. The innovation and investment of nation is now dependent strength of on Data Protection Laws. Keeping this in mind, there are different policies being developed around the globe and they reflect the changing landscape around data protection and privacy. With nearly 450 million Internet users and a growth rate of 7-8%, India is well on the path to becoming a digital economy, which has a large market for global players. Looking at the larger industry perspective, it has been seen in the last few years that the e-commerce companies are struggling for flexibility in data ownership in India. Since the inception of regulating Information technology in India through the Information Technology Act 2000, there is a clear vacuum in data protection and protection of privacy rights in cyberspace. Innovation is fundamental to the growth of the start-up ecosystem in India, which is the third-largest in the world, on the other hand, India has become the growth market darling of the world, with a digital economy on track to reach a $1tn valuation by 2022. While data can be put to beneficial use, the unregulated and arbitrary use of data, especially personal data, has raised concerns regarding the privacy and autonomy of an individual. Thus, Sound data protection policy inevitable for the development of Innovation & Investment. In the wake of global regulations such as General Data Protection Regulation (GDPR) and the recognition of privacy as a fundamental right by Supreme Court, it has been an urgent need to have statutory protection of data privacy in India. Besides the obvious privacy concerns the Government of India has recently introduced the comprehensive data protection law focusing on privacy will stall the growth of the innovation economy. The paper will analyse the Data-driven innovation, cross-border data flows, and the growth of ICT industry, job creation, while protecting the privacy of users, and trust in the enforcement of the law in light of data Protection Act of India and how this could bring major implications for national security, foreign investment, and international trade.

Keywords

Data, Protection, Privacy, Innovation, Investment, digital economy