Date: 15/03/2023

Relevance: GS-2: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.

Key Phrases: India’s G-20 presidency, data governance, Unified Payments Interface (UPI), Data Empowerment and Protection Architecture (DEPA), the potential misuse of data, data sovereignty, India Stack, open-source solutions.

Why in News?

• In recent years, India has made great strides in its digital strategies and data governance.
• India has embraced technology and digitalization to drive economic growth and improve the lives of its citizens.
• However, as the country continues to evolve, it must also ensure that its digital strategies and data governance are inclusive, transparent, secure, and conducive to sustainable development.

Opportunity to showcase digital advancement:

• India’s G-20 presidency has provided an opportunity for the country to showcase its advancements in the digital arena, particularly with regard to data infrastructures and data governance.
• As the world becomes increasingly digital, the G-20 has recognized the need for international cooperation and collaboration in addressing the challenges, opportunities, and risks posed by the rapid growth of data and digital technologies.
• Significant progress has been made in the use of digital technologies to provide access to bank accounts and in the promotion of digital transactions through the Unified Payments Interface (UPI) and other options.

Data Empowerment and Protection Architecture (DEPA):

• Potential Benefits:
  • The launch of India’s Data Empowerment and Protection Architecture (DEPA), a consent management tool, has generated both excitement and concern among stakeholders.
  • DEPA has the potential to improve data protection and privacy for citizens by giving them greater control over the use and sharing of their personal information.
  • By allowing individuals to easily manage and control their data consents, DEPA could help to build trust in digital technologies and data governance.
• Concerns:
  • Security and privacy:
    • There are also risks associated with DEPA, particularly in terms of security and privacy.
    • If the consent management tool is not properly implemented or managed, there is a risk that personal information could be misused or misappropriated.
  • Inconsistency in implementation:
    • There are concerns that the implementation of DEPA may be inconsistent across different sectors and jurisdictions, which could undermine its effectiveness and create confusion among citizens.
• Addressing concerns:
  • To realize the potential benefits of DEPA and minimize the risks, it is important that the tool is implemented in a transparent, consistent, and secure manner.
  • This will require close collaboration between the government, the private sector, civil society, and other stakeholders and the development of clear and effective regulations and standards.

Digital Technologies in Health and Agriculture:

• Benefits:
  • The use of digital technologies can enhance access to healthcare services, particularly in rural and remote areas, while in agriculture they can empower farmers and enhance their incomes.
• Concerns:
  • There are concerns that relate to security and privacy on the one hand and infrastructure, connectivity, and the availability of a skilled human workforce on the other hand.
  • There are also concerns about the potential misuse of data and information in these sectors.
    • For example, in the health sector, there is a risk that sensitive medical information could be misused or exploited for commercial purposes, while in agriculture, there is a risk that market information could be manipulated for the benefit of certain actors.
  • Another issue is that of ownership and governance of data generated and collected in health and agriculture.
• Addressing concerns:
  • Data governance has to be a process in evolution that is agile and responsible. But it has to be built upon fundamental rights, values, and norms and on regulations that balance the interests of all stakeholders.
  • These concerns must be addressed through strong and robust data protection regulations, the development of ethical and responsible data governance practices, as well as effective and accountable oversight mechanisms.

The issue of data sovereignty

• India’s establishment of an India Data Management Office (IDMO) is a step forward in the country’s journey towards data sharing and data governance.
• The IDMO is expected to oversee and coordinate the implementation of India’s digital strategies and data governance framework, and to ensure that these efforts are aligned with the country’s values and priorities.
• It will also work to promote the development and implementation of open-source solutions, which will help to ensure that underlying data architectures are a social public good, and to promote digital technologies to become accessible and affordable for all.

Find a middle way

• India needs to strike a balance between data sovereignty and data flow by defining what data can be shared and used for which purposes while respecting the fundamental right to privacy.
• Clear and transparent data governance policies and regulations should be developed, along with investments in digital infrastructure and skills to ensure responsible and secure data collection, storage, and usage.

Conclusion:

• Advancements in financial inclusion and UPI hold promise for data transfer to other sectors of India Stack, but challenges such as digital infrastructure, privacy protection, data security, and responsible governance must be addressed.
• India Stack must be consistent with broader development strategies to align with values and priorities, support development, and ensure a secure, trustworthy digital future.
• India can set an example for other countries in developing a data governance regime.

Source: The Hindu

Mains Question:

Q. Analyse the challenges and opportunities for India in developing a comprehensive data governance regime that promotes sustainable development while protecting citizens' privacy and data rights.