Syllabus
GS Paper 2 – e-governance- applications, models, successes, limitations, and potential
GS Paper 3 – Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment.
Applications where to apply?
When asked about
– Digital Economy
– Data Protection
– Digital public Infrastructure
– $ 5 trillion economy
Context
Rapid digitization raises concerns regarding the regulation and governance of citizen data, particularly non-personal data (NPD).
Source
The Hindu | Editorial dated 21st March 2024
Data marketplaces: the next frontier
India’s journey towards a $5 trillion economy hinges significantly on digitization, with data and AI projected to contribute $450-500 billion to GDP by 2025, as per a NASSCOM report.
This surge in digitization, especially in government operations, has led to a notable increase in citizen data. While personal data is regulated, the lack of robust Non Personal Data (NPD) regulations presents challenges in harnessing its full potential for societal benefit.
Citizen Data in Data Markets
“Citizen data” refers to the information collected from individuals, which can be broadly categorized into two types:
- Personal Data:
- This type of data contains identifiable information about individuals.
- It includes details such as names, addresses, contact information, biometric data, financial records, and any other data that can be used to directly or indirectly identify a person.
- Non-Personal Data (NPD):
- In contrast to personal data, NPD does not contain information that can identify individuals.
- It includes data such as statistical information, aggregated data, anonymized data, and other forms of data that do not pertain to specific individuals.
- NPD is often considered a potential ‘public good’ because it can be utilized for various purposes without infringing on individuals’ privacy rights.
- This type of data is valuable for generating insights, conducting research, and informing policy decisions without compromising individuals’ privacy.
Data Marketplace
A data marketplace is essentially an online platform that functions like a store for buying and selling data. It connects data providers, who list their datasets, with data consumers who are searching for specific information.
- Data Providers: Businesses, organizations, and even individuals can act as data providers on a marketplace. They can sell a variety of data types, including:
- Business intelligence and research data
- Demographic and firmographic data
- Market data
- Public data
- Sensor data, which can include things like weather data or traffic data
- Social media data By selling data they have collected, data providers can generate new revenue streams and contribute to a wider ecosystem of data analysis.
- Data Consumers: Data marketplaces offer a valuable resource for businesses and organizations of all sizes. Here are some of the common types of data consumers:
- Businesses that use data for market research, product development, and customer targeting
- Marketing and advertising agencies
- Financial institutions
- Government agencies
- Research institutions Data consumers can browse the marketplace to find datasets that meet their specific needs and purchase them for analysis.
Benefits of Data Marketplaces
- Increased Accessibility: Data marketplaces make it easier for businesses to find and acquire the data they need, which can be a complex process traditionally.
- In the past, companies might have had to collect data themselves through surveys, web scraping, or other methods, which can be time-consuming and expensive.
- Data marketplaces provide a centralized location where businesses can browse and purchase data from a variety of sources, streamlining the process.
- Data Monetization: For data providers, marketplaces offer a way to monetize their data assets that might otherwise go unused.
- Wider Variety of Data: Data marketplaces offer a vast selection of data from various sources, allowing for more comprehensive analysis.
- Improved Decision-Making: By providing access to a wider variety of data, data marketplaces can help businesses and governments make better decisions.
- Cost Efficiency: Data marketplaces can also help businesses and governments save time and resources by eliminating the need to develop their own data collection and analysis infrastructure.
- Enhanced Innovation: Data marketplaces can foster innovation by providing access to new and emerging data sources.
- This can lead to the development of new products, public services, and business models.
Challenges associated with NPD in data marketplace
- Absence of Regulatory Framework: Unlike Personal Data, there is a stark absence of regulation for NPD
- Sub-optimal Policy Decisions: In the absence of regulations, policymakers may struggle to effectively leverage NPD for informed decision-making.
- Lack of standardized procedures for data exchange can hinder collaboration between government agencies and other stakeholders, leading to sub-optimal policy outcomes.
- Privacy and Security Concerns: Unprotected exchange of NPD increases the risk of privacy breaches and unauthorized access to sensitive information.
- Without adequate safeguards, individuals’ privacy rights may be compromised, eroding public trust in data-driven initiatives and government institutions.
- Unfair Advantage for Big Tech: Capacity-carrying actors, particularly large technology companies (“Big Tech”), may exploit loopholes in the absence of regulation to gain undue advantages.
- This can lead to monopolistic practices and further exacerbate privacy concerns, as these entities may wield significant influence over NPD utilization and exchange.
Future Prospects
- Kris Gopalakrishnan Committee Report:
- The committee’s report extensively dealt with various aspects of NPD, including its potential as a public good, risks associated with its misuse, and recommendations for regulatory frameworks.
- The report highlighted key issues such as the risk of de-anonymization of NPD, the need for institutionalization of a central authority for NPD governance, and mechanisms for ownership and data sharing.
- MeiTY’s NPD Framework:
- The Ministry of Electronics and Information Technology (MeiTY) released the National Data Governance Framework Policy (NPD Framework), which aimed to provide a foundational framework for the governance of NPD.
- This framework was touted as the initial step towards building a digital architecture to maximize data-driven governance in India.
- However, while the NPD Framework outlined high-level principles and objectives for NPD governance, it lacked actionable guidance and enforceable mechanisms for implementation.
- Adopting global models
- Australia has implemented robust data exchange frameworks across various sectors to facilitate the sharing and utilization of non-personal data.
- These frameworks are designed to ensure interoperability between different government agencies and enable data-driven decision-making in areas such as healthcare, education, and urban planning
- Similar initiatives have been taken by UK, Estonia among other nations.
- Australia has implemented robust data exchange frameworks across various sectors to facilitate the sharing and utilization of non-personal data.
Conclusion
Effective governance of non-personal data (NPD) is vital for India’s $5 trillion economy goal. Despite efforts, the absence of a strong regulatory framework remains a hurdle. Addressing this gap requires a thorough evaluation of existing policies, coupled with actionable measures for data exchange governance. By fostering interdisciplinary collaboration and enhancing regulatory frameworks, India can maximize the socio-economic benefits of NPD in its developmental trajectory.
Related Topics
Digital Personal Data Protection Act, 2023 (DPDPA)
Digital Personal Data Protection Act, 2023 (DPDPA) applies to the processing of digital personal data within India.
- Focus: It recognizes the right of individuals to protect their personal data while also allowing processing for lawful purposes.
- Consent: Generally, consent from the individual is required for processing their data. This consent must be “free, specific, informed, unconditional and unambiguous with a clear affirmative action” for a specific purpose.
- There are some exceptions for specific legitimate uses outlined in the law.
- Data Fiduciary Obligations: Organizations processing personal data are referred to as “data fiduciaries.” They have obligations to:
- Maintain the accuracy of the data.
- Keep the data secure.
- Delete the data once the purpose is fulfilled.
- Individual Rights: The law grants individuals rights regarding their data, including:
- Right to access their data.
- Right to seek correction and erasure of their data.
- Right to object to processing of their data.
- Data Protection Board: The Act establishes a Data Protection Board of India to enforce the law and handle grievances.
References
PRS India – Digital Personal Data Protection Act 2023
Practice Question
Suggest measures to enhance data exchange governance for maximizing the socio-economic benefits of Non Personal Data (NPD) in India’s development trajectory. [250 words]