By Shardul Amarchand Mangaldas & Co.
The introduction of the DPDP Bill in the Lok Sabha this Monsoon Session marks an important milestone in India's journey towards a comprehensive data governance framework.
This DPDP Bill will set a new global standard for data protection regimes, the development of which reflects multi-stakeholder consultation. The DPDP Bill will likely have far-reaching implications, given its sector-neutral applicability. With an increasing number of businesses adopting technology and relying on processing of personal data as a core part of their business, the DPDP Bill is likely to have an impact on businesses of all sizes.
The DPDP Bill has attempted to resolve contentious issues while striking a ‘balance between rights, commerce and innovation'. The DPDP Bill will play a critical role for India in achieving its goal of building a three-trillion-dollar digital economy. For instance, MEITY's stance on enabling cross border data-transfers accounts to enable access to global digital services and technological innovation. In addition, MEITY has attempted to make the DPDP Bill more business-friendly by excluding any criminal penalties for non-compliance under the DPDP Bill. Instead, the DPDP Bill only imposes monetary liabilities for any contraventions, in line with India's moves towards de-criminalisation of economic offences. The DPDP Bill also allows entities to provide voluntary undertakings to the Data Protection Board for undertaking specific actions. This too is a positive step in accordance with prevailing global best practices.
On the other hand, it is also encouraging to see MEITY introducing certain international standards of data governance in the DPDP Bill. The DPDP Bill provides a
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