Balancing Innovation and Regulation: India's Draft Data Protection Rules

The Indian government has released draft rules for the Digital Personal Data Protection (DPDP) Act, aiming to balance regulation with innovation and safeguard citizen rights. Following consultations, these rules seek to align with the Act's four walls, ensuring regulation doesn't stifle the country's innovative ecosystem.

The Indian government has unveiled draft data protection rules that aim to strike a balance between regulation and innovation, according to Union Minister Ashwini Vaishnaw. Released for public consultation until February 18, the draft rules support the Digital Personal Data Protection (DPDP) Act.

Minister Vaishnaw emphasized that the draft rules align strictly with the Act approved by Parliament. Extensive industry consultations have informed the framing of these directives, designed to protect citizen rights and boost the innovation landscape, particularly among startups.

The regulations hold significant implications for data handlers, with compliance required within two years of the rules' finalization and approval during the monsoon session. Special care has been taken to prevent adverse impacts on small businesses, while ensuring stricter obligations for large tech firms.

(With inputs from agencies.)