Data privacy- Positive Impact on Software Services Export from India
Data privacy & its importance
Let us connect data privacy to our everyday life, the most crucial aspect of which a human being always wants to protect (Which may be the security of their house, family, future, and a lot of other things). When it comes to securing any personal data, things get a little more complicated and crucial, since even a minor breach in security can have serious effects.
Because most transactions and data processing takes place using digital resources, we can call our current world a digital one. When data is exposed on the internet, it is open to attack by hackers and other dangerous groups. As a result, data privacy is as essential to living beings’ survival as oxygen.
On July 27, 2018, a data protection bill was written and submitted. The bill is known as the Personal Data Protection Bill. The research focuses on the current data protection system and its advantages and disadvantages. The paper also makes recommendations for how to take decisive action in the implementation of data regulation and protection legislation.
The following are some of the proposed bill’s highlights:
The conditions for the acquisition and processing of personal data would be specified, including restrictions on the processing of sensitive personal data and the amount of time personal data could be kept (Localization of data is a focus area)
The organizations would be required to hire a Data Protection Officer and conduct annual third-party audits of their data handling.
Furthermore, the Bill would compel businesses to implement specific information security safeguards to prevent personal data from being misused, modified, or disclosed.
Noncompliance with the Bill might result in fines of up to 50 million rupees (about USD 728,000) or 2% of global annual turnover for the previous financial year, whichever is larger.
In the case of an online transaction, we need a website or gateway with SSL Certificate on an eCommerce website to ensure a 100 percent safe and secure transaction because it uses a private key that is only known by the intended parties. A new Indian data privacy regulation, in a similar vein, will establish transparency between data processors and their owners. Now, businesses must ensure that personal information is collected legally and under rigorous guidelines. Institutions that collect and administer it will also be required to safeguard it against misuse — or face sanctions if they do not.
The impact of India’s data privacy legislation on software service exports
In India, the cloud computing business is booming: The good news is that India has joined a small group of countries that are working to establish a comprehensive data protection regime. Localization may help India’s data center and cloud computing industries thrive, but as a matter of public policy, such a strategy is exceedingly narrow. Long-term, competitiveness will generate beneficial results.
The $167 billion Indian IT business is export-driven and deals with data of residents and companies in the United States, the European Union, and other parts of the world. One segment of Indian industry would benefit from the comparative trade advantages, necessitating a rigorous data localization framework. This rigor could be interpreted as a trade barrier and a threat of retaliation. According to a McKinsey study, cross-border data flows have boosted global gross domestic product by as much as 10%.