India to replace IT Act with Digital India Act, part of comprehensive legislative framework expected in 3-4 months

India will replace the IT Act with a Digital India Act which will comprise a modern framework of laws and rules that will act as catalysts for innovation and protecting citizen's rights, said Rajeev Chandrashekhar, minister of state for electronics and information technology.  

Speaking at the USIBC India Ideas summit, he said that the government will bring a fresh comprehensive legislative framework within three to four months, which will address digital data protection and non-personalised, anonymous data.  

He further added “Our approach is focused on expanding India's innovation ecosystem and the internet and technology are going to be big enablers in the continued expansion of our economy. We also have a comprehensive approach and will enact a new legislative framework that addresses the digital space and acts as a catalyst for the Indian economy by enabling more innovation, more start-ups and at the same time also protecting the citizens of India in terms of safety and trust and accountability,” he said.  

“On the data protection side, we have approached the parliament with a comprehensive framework of laws which includes the Digital Data Protection Law which will address the data protection concerns of the digital economy. Additionally, we have the National Data Governance Framework Policy which addresses the non- personalized data and the anonymous data, among others,” he said.  

The government withdrew the controversial personal data protection bill last month which it brought out in 2019 in a draft form, after the joint committee of Parliament flagged several issues and recommended 81 amendments to 99 sections, for making the bill more comprehensive.     

Minister of electronics and information technology Ashwini Vaishnaw said in a statement to the Lok Sabha, that the government will replace the bill with a comprehensive legal framework on digital ecosystem that is currently in the works. 

Chandrasekhar said that there were far too many amendments that had made the bill create a high degree of compliance for startups and small companies, which was not the intention of the government as it did not want any law or policy to hinder the country’s innovation ecosystem.  

“We will have new rules, regulations and laws rolled out for in the next 3-4 months and this will be done with consideration to all the involved stakeholders and countries. Our focus is to build good legislation, rules and framework and build an enabling ecosystem which will ensure India’s success in the coming decade,” he said.  

He added that the new rules and regulations will be rolled out over the course of the coming weeks, but will undergo adequate stakeholder consultations to create a forward-looking framework. 

Chandrasekhar further added that India is set to become a $300 billion electronics manufacturing industry by 2025-26, from present levels of $75 billion. He said that India's manufacturing capabilities had strengthened during Covid-19 landscape making it a preferred partner in global supply chains.  

“Our ambition is to build a $300 billion electronics manufacturing industry in India by 2025-26. Electronics manufacturing, currently at $75 billion, will form an important component of the $1 trillion economy for India.”