The Financial Times has reported on recent developments concerning India's data protection regulations, which are poised to reshape how technology companies manage and process personal data within the country. Following the passage of the digital data protection bill a year and a half ago, the Indian government unveiled draft rules on Friday that propose significant changes, including a revival of data localisation requirements and new stipulations regarding minors and social media usage.
The fresh regulations aim to uphold national interests by preventing certain categories of data from being transferred abroad. This requirement had been a point of contention during previous legislative discussions, as it was originally mandated in earlier drafts of the bill, but was later scaled back due to pressure from major technology firms. The latest rules now classify large corporations, identified as "significant data fiduciaries," and dictate that the handling of their personal data will be under the government’s purview. The export of personal data would require either a general or specific government order, complicating the operations of tech giants such as Meta, Google, Apple, and Microsoft.
Additionally, the government's approach aims to safeguard children under 18 by necessitating parental consent for social media usage. Companies are tasked with verifying that parents are, in fact, adults, presumably by requiring government-approved identification to ensure compliance. These companies are also prohibited from targeting advertisements to minors or tracking their online behaviour. There are strict penalties of up to Rs 2 billion for companies that fail to comply with these regulations.
While government officials assert that these measures are designed to protect children and maintain their access to online information, concerns have emerged regarding the practicality of enforcing such rules. The responsibility for determining age falls on children themselves, and experts question how effectively companies can ensure compliance given the elusive nature of online identities.
The public will have until February 18 to comment on the draft rules, and it remains to be seen whether large technology companies will find ways to influence the final provisions before they are enacted.
In related news, the Financial Times noted that India’s foreign exchange reserves have dipped to an eight-month low, attributed to a significant depreciation of the Indian rupee, which has lost 3% against the US dollar in the early part of 2024. The Reserve Bank of India has intervened in the market, selling dollars from its reserves to stabilize the rupee, but analysts anticipate a challenging outlook ahead, with most Asian currencies experiencing weakness in the current economic climate.
With the opening of the earnings season approaching, industry experts will be closely monitoring performance from major players like Tata Consultancy Services on January 9, as the tech sector and broader economy navigate these evolving regulatory and market conditions.
Source: Noah Wire Services