The Future of Data Protection in India

The Indian government has withdrawn its Personal Data Protection Bill 2021 as it looks to come up with a comprehensive legal framework.  

Speculations have surrounded whether the new bill will incorporate the broader ideas of data protection as recommended by the JCP and be in line with the Supreme Court’s landmark judgment of 2017 in which it held privacy as a fundamental right.

Given the forecasted value of the consumer market in India is expected to reach US$ 21.18 billion by 2025, the new legislation must focus on protecting local consumer data. 

While data localisation may lead to challenges surrounding India's flourishing digital trade relationship with US and other western countries, the new legislation may not re-introduce the concept of data localisation as of yet. However, the new framework should provide transparency around how organisations are using, storing and processing any personal data, and most importantly the purpose of keeping the data. 

As always, there needs to be awareness and education among the general public in terms of their understanding of the risks associated with their personal data, so that they can take control and decide how it should be used.

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