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Minister Ashwini Vaishnaw: India to Collaborate with Tech Industry on Data Transfer Rules

by VARINDIA 2025-01-09

"We recognize the significance of the tech industry in driving the digital economy, and any policy on data transfer must reflect a collaborative approach," said Vaishnaw.

The Indian government is set to engage with the technology industry to shape regulations around cross-border data transfers, according to the Union Minister for Electronics and IT, Ashwini Vaishnaw. Speaking at a recent event, the minister emphasized the importance of collaboration between the government and private sector to ensure that data transfer policies align with global standards while safeguarding India’s digital sovereignty.

With the increasing reliance on data-driven technologies, cross-border data transfers have become a critical issue. Minister Vaishnaw acknowledged the challenge of balancing national security concerns with the need to support innovation and global business operations. He highlighted that the government’s objective is to create a framework that promotes trust, transparency, and accountability in how data is shared across borders.

India has been advocating for data localization—mandating that critical data generated within the country be stored locally. However, such policies have drawn concerns from global tech companies, citing increased compliance costs and potential barriers to seamless global operations. Vaishnaw reassured stakeholders that the government would work closely with the industry to address these challenges.

“The aim is not to hinder business but to ensure that data is used responsibly and in a way that benefits the nation while protecting individual privacy,” he added.

This potential curb on data transfer could pose challenges for major social media and internet companies, including Meta, Google, Apple, Amazon, and Flipkart. These companies may express their opposition to the measure in their feedback to the ministry, which is open for feedback until February 18.

Additionally, the minister highlighted the proposal to mandate parental consent for children under 18 to join social media platforms, aiming to build safeguards for a safer internet environment.The government plans to involve major players in the tech ecosystem, including representatives from Indian startups, multinational corporations, and advocacy groups. This collaborative effort seeks to address the concerns of all stakeholders while ensuring that India’s policies are consistent with international practices, such as the General Data Protection Regulation (GDPR) in the European Union.

The government is expected to initiate consultations with industry stakeholders in the coming months. Draft guidelines for cross-border data transfers could be released for public feedback, ensuring a transparent policymaking process. The final framework is anticipated to strike a balance between national interests and the needs of the tech industry, setting a precedent for other countries grappling with similar challenges.

This initiative aligns with India’s broader Digital India vision, which aims to harness technology to drive economic growth and inclusivity. As India aspires to become a global leader in the digital space, the government’s approach to data governance will play a pivotal role in defining its success. By involving the tech industry in crafting these policies, India is taking a pragmatic step towards fostering innovation while safeguarding its digital ecosystem.