Although a committee led by Justice B N Srikrishna<\/a>, a former judge of the Supreme Court, submitted its report and the draft Bill to the government in July last year, it has yet to be sent to the Cabinet for approval.
Talks of a rift between policymakers over its contents and whether there needs to be fresh consultations has added to the uncertainty. The government had said it would take up the bill on priority in its second term.
“If the Bill is sent to the Cabinet, it will provide some visibility to the industry,”Ashish Aggarwal, head, public advocacy at industry lobby group Nasscom<\/a> told ET<\/strong>. Sector regulators may come up with their own data policies if there is a delay, he added.
“RBI has already put in place data storage requirements for payments transaction data and the Ministry of Commerce has been consulting on many aspects related to data for the ecommerce sector. It is important that the Personal Data Protection law sets the basic framework for government, regulators and the industry. It should not be the other way round,” Aggarwal said.
The government intends to table the bill at the earliest, but is waiting for the right time given the tariff war between the US and India, a government official, who did not want to be named, said. After the US withdrew special trade privileges, the Modi government imposed higher retaliatory tariffs on a slew of American products.
“The current bill has loopholes, but if the government goes back to the drawing board in a non-transparent process, we risk losing the strong parts of the bill too,” said Amba Kak, public policy<\/a> advisor of Mozilla<\/a>, the open source internet company.
The government had sought public comments on the draft bill last year.
“The situation is obviously not ideal. Everybody is waiting and watching. We would like to see more transparency,” said Nehaa Chaudhari, public policy lead at Ikigai Law. “Everybody wants clarity on data localisation. Policy uncertainty is not what you want as an entrepreneur.”
The contentious proposal of data localisation had also raised hackles, with US technology companies protesting and the American government calling it “discriminatory and trade-distortive”.
ET reported in July that the government was looking to hold fresh consultations on the proposed bill after differences emerged among policymakers over provisions for public data.
“Some issues have been highlighted, but it doesn’t mean that the whole bill will be scrapped. If public data is a concern, a chapter can always be introduced on it in the current bill without everything going into cold storage,” said an official requesting not to be quoted by name.
“Given that the government is in a position to pass any bill they want, it is disappointing to see further delay,” said Nikhil Narendran, Partner, Trilegal.
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