Data Bill: Global trade bodies raise privacy concerns

NEW DELHI: More than a dozen technology and business trade groupings from the US, Europe and Japan have jointly asked a parliamentary panel examining the draft personal data protection (PDP) bill to protect the “privacy of Indian citizens” and “remove barriers” to the growth of the country’s economy.

The coalition, which represents companies such as Amazon, Google, Apple, Microsoft, Facebook and IBM among others, has raised concerns over areas such as data localisation, government access to non-personal data and the classification of sensitive and critical data. The letter was addressed to Meenakshi Lekhi, head of the joint select committee.

“We are concerned that some provisions in the PDP Bill would hamper the country’s economic growth, constrain the ability of companies operating in the market to innovate, and in some cases potentially undermine the protection of Indian citizens’ privacy,” the letter said.

The groups include the United States Council for International Business (USCIB), the Information Technology Industry Council (ITI), the Business Software Alliance (BSA), CompTIA, DIGITALEUROPE, and Japan Electronics and Information Technology Association (JEITA).

“I really hope this law doesn’t kill the golden goose that laid the golden egg,” Stephen Braim, vice president, government affairs, IBM Asia Pacific, told ET separately.

‘Establish Clear Parameters’
“No one really knows what the long-term effect will be but I think with the innovation opportunity that is going to present itself in the next five years, anything that would weigh down the Indian IT services is going to have a long-term negative effect.”

In fiscal 2019, India’s software and services exports stood at $137 billion, a fourth of overall exports of $535.5 billion, according to government data. In fiscal year 2020, software exports are expected to grow to $147 billion.

The letter called for removal of the clause that makes it mandatory for companies to share non-personal, anonymous data with the government.

“The ambiguity in the definitions, and the restrictions on where data must be stored based on those definitions, presents a serious constraint for many companies when planning their future investments in India,” it said.

The coalition asked the government to wait for recommendations that will be made by a committee led by Infosys cofounder Kris Gopalakrishnan on non-personal data, before finalising any legislation.

“Relatedly, we also respectfully ask that the government of India establish clear parameters for government access to both personal and non-personal data, grounded in rule-of-law processes that protect the privacy of citizens and business confidence,” it said.

After the PDP Bill was tabled in Parliament in December last year, it was referred to the joint parliamentary committee, which had asked stakeholders to send feedback by February 25. The committee is likely to ask stakeholders to appear before it to understand their concerns.

The signatories also included ACT | The App Association, Internet Association (IA), National Foreign Trade Council (NFTC) and techUK.