Global IT Bodies, CIO News, AND CIOs

The implementation of the data protection bill, recommended by a parliamentary panel, will significantly deteriorate the business environment in India and reduce the flow of foreign investment, a dozen global industry bodies have said in a letter. together with the government. Industry associations have called for broader consultations with stakeholders before the bill is presented to parliament.

Industry bodies based in the United States, Japan, Europe, Southeast Asia and India, including ITI, JEITA, TechUK, US India Business Council and Business Europe, represent thousands of companies and technology majors like Google, Amazon, Cisco, Dell, SoftBank and Microsoft. .

The letter, dated March 1, addressed to Union Communications and Information Technology Minister Ashwini Vaishnaw said the parliamentary panel report includes new recommendations for the Personal Data Protection Bill which , if passed, would create powerful disincentives for India’s innovation ecosystem and the promise of a trillion-dollar digital economy.

Agencies have expressed concern over the inclusion of non-personal data, restrictions on cross-border data transfers, data localization obligations, mandatory certifications of AI hardware and software.

Industry bodies have said mandates for companies to store their data locally in India would degrade privacy and cybersecurity protections by limiting state-of-the-art solutions available worldwide.

“When these recommendations and others in this report are considered together, their outcome, if adopted, would result in a significant deterioration of the business environment in India, degrading the ease of doing business in India and with India, and negatively impacting India’s domestic startup ecosystem and global competitiveness,” the letter reads.

Industry bodies have said that the recommendation to establish a domestic alternative to the SWIFT international banking system is also unprecedented and appears beyond the scope of the report’s objectives, and would have a significant negative impact on the Indian financial sector and the economy. digital payments ecosystem.

When contacted, ITI India Country Officer Kumar Deep said: “There needs to be extensive consultation to make this future privacy ready legislation. India can be a leader in this regulatory area by crafting dynamic data protection legislation with the interest of all stakeholders in mind.”

Opposition political parties have also expressed concern about the panel’s recommendations for the proposed data protection authority, as well as clauses they say interfere with states’ rights.

Minister of State for Electronics and Computing, Rajeev Chandrasekhar, said on Thursday that the government was reviewing the concerns that stakeholders had shared with the ministry.

“We are therefore extremely careful that any legislation we pass in the digital ecosystem is enabling legislation that improves the growth momentum of the digital economy rather than creating problems along the way,” he said. .

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