IT Minister Ashwini Vaishnaw Directs Startups To Share Feedback On PDP Bill

Minister of communications Ashwini Vaishnaw has reportedly suggested startups to test the new personal data protection Bill for their specific use-cases and submit feedback. 

“A good idea for startups and technology providers to offer their feedback will be to test the Bill against their specific use-cases to identify gaps, if any, and provide suggestions accordingly,” Vaishnaw said, according to news agency IANS. 

The minister made the comments while addressing a gathering of industry stakeholders, including NASSCOM, and executives of Indian startups last week. 

Vaishnaw said that the proposed law has been simplified to ensure implementation across use cases and sectors. The minister further reiterated that the proposed Data Protection Board will be designed to redress concerns around data protection and will make it accessible for every strata of the society to register complaints.

Among other things, Vaishnaw said that the rules for cross-border data flows will be finalised in a manner that strengthens data protection without disrupting data flows. 

In an official statement, NASSCOM welcomed the Bill noting that it will bolster ‘India’s narrative as a trusted global partner for all invested in digital transformation.’

“NASSCOM will continue to work with the government and the industry, and make recommendations that are aimed to not only further strengthen this bill from a privacy and innovation perspective but also bolster India’s narrative as a trusted global partner for all invested in digital transformation,” the industry body said.

New Bill Under Fire 

After being in limbo for nearly three years, the Personal Data Protection Bill, 2019, was nixed in August this year over concerns raised by a Joint Parliamentary Committee (JPC) and industry bodies. 

Building on this, the ministry last month released a new draft of the Bill, The Digital Data Protection Bill, 2022 – and invited public feedback. The newest iteration of the draft proposes sweeping changes, including further narrowing down the scope of the usage of personal data by companies, mandating data localisation and storage norms, and penalties. 

The Bill immediately attracted criticism from internet advocacy groups and digital activists. While the Internet Freedom Foundation accused the government of retaining ‘vague and unchecked powers’ via the law, others, like industry body IAMAI, opposed keeping 18 years as the age of consent in the Bill. Consumer advocacy body CUTS also claimed that the proposed law gives unfettered powers to the government.

Interestingly, this comes at the same time amid reports that the centre was planning to exempt early-stage startups from mandatory compliance with the data protection norms under the proposed Bill. 

The proposed law is open for public comments until December 17 and could likely be tabled before the Parliament during the upcoming Budget Session.