IT minister Ashwini Vaishnaw and MoS Jitin Prasada face tall task of steering crucial tech regulations

Apart from those in the ambit of the IT ministry, other notable upcoming regulations where the ministry may have some say, especially in context to the impact it may have on the ecosystem, include Digital Competition Law, e-commerce policy and so on.

Here's a look at these regulations in detail —

Electronics and semiconductor manufacturing

In Prime Minister Narendra Modi's third term, industry players are nursing expectations of a further boost to the electronics manufacturing and semiconductor chip sectors. In the previous term, the government had announced a $10 billion (Rs 76,000 crore) semiconductor package which has been allocated to players like the Tata Group, CG Power and Micron for chip plants.

Moreover, chipmaking proposals from Israeli company Tower and domestic SaaS unicorn Zoho are being evaluated under the scheme. Top officials have indicated over the past few months that a new package is on the anvil which will focus on supporting end-to-end design and manufacturing of semiconductor chips in the country.

Also, the Modi government has set an ambitious goal of producing $300 billion worth of electronics products by 2025-26, offering generous incentives through production-linked incentive (PLI) schemes to attract device makers seeking to diversify their manufacturing capabilities beyond China.

"This is an industry where it's very important to create a critical mass. We have crossed that threshold now with $100 billion of electronics production and $44 billion of mobile phones. Today, we are in a position where we can move away from the import-substitution model and move on to an export-led model,” Ashwini Vaishnaw, who has led the Ministry of Electronics and IT since 2021, said last year.

DPDP Rules

The DPDP Rules have been anticipated since the DPDP Act was passed in Parliament in August 2023. While the Act provides the legislative framework, the rules will define its specifics. Previously, it was reported that the draft DPDP Rules could be released within 100 days of the formation of the new government.

Moneycontrol had earlier reported that the rules might exempt educational institutions, health establishments, and certain government entities from the restrictions on processing children's data as mandated by the Digital Personal Data Protection (DPDP) Act.

Additionally, the rules may require that any platform, whether private or government, processing personal data immediately notify the Data Protection Board (DPB) of any data breach upon discovery.

Digital India Bill

The Digital India Bill has been in development for over two years. The need for this bill arises because the Information Technology Act, enacted over two decades ago, has not kept pace with technological advancements from a policy perspective.

This legislation will significantly impact Big Tech companies. During the previous NDA government, the IT ministry had held pre-consultation meetings with the industry on the "principles" of the Digital India Bill.

In the consultation, helmed by ex-minister of state Rajeev Chandrasekhar, the industry was apprised of how the Digital India Bill may look. It was expected that the bill would be released soon after those consultations. However, that has not been the case.

One of the key changes that this bill is likely to bring is the removal of the safe harbour clause in the IT Act. The safe harbour clause gives legal immunity to platforms when it comes to third-party content posted on it. Removal of such a clause would make such platforms criminally liable for such posts.

Moneycontrol previously reported that the bill might introduce safeguards against AI algorithms, allowing citizens to opt out of decisions made by these algorithms.

If a citizen opts out of algorithmic decisions, the government may include provisions requiring them to forgo any related digital services that rely on those algorithmic decisions.

Additionally, the government may include measures to prohibit certain new and emerging technologies if they pose potential harm to users.

Deepfake and AI regulation

Last year, actor Rashmika Mandanna’s morphed video went viral on social media. The issue forced the government to sit up and take action on the matter. The government has sent advisories to social media platforms and held meetings with them in a bid to come up with possible solutions aimed at tackling this artificial intelligence (AI)-generated content menace.

In one such advisory, the government asked companies to take its permission before rolling out AI products. The advisory triggered a huge debate, with the industry terming the move as "regressive" and capable of "stifling innovation".

Post that, the government backtracked and withdrew the directive of taking permission, much to the relief of the industry.

However, the government remains steadfast in its aim of ensuring a safe and trusted internet which means technologies such as AI are not misused to create deepfakes and so on.

It was expected that the government would amend the IT Rules to bring in additional compliances regarding the matter. This too may be something that the new government may be looking at.

Digital Competition Bill

Although MeitY is not the nodal ministry for this bill, the ministry will be keenly tracking its developments as it will have an immense impact on the ecosystem. The Digital Competition Bill, released in draft form in February 2024, aims to curb anti-competitive practices by Big Tech firms.

The draft bill proposes to classify Big Tech companies as Systematically Significant Digital Enterprises (SSDE), subjecting them to additional compliance requirements. For example, the bill mandates that an SSDE cannot favour its own services or products, those of related parties, or third parties it collaborates with for the manufacture or sale of products or services.

Additionally, the bill restricts an SSDE from using the non-public data of its business users to gain an unfair competitive advantage over those users operating on the SSDE's platform.

Violations of the bill's provisions could result in fines of up to 10 percent of the company's global turnover and, in some cases, imprisonment for up to three years.

E-commerce policy

Another such bill which MeitY will not be directly responsible for but will have a significant interest in is the e-commerce policy. The policy being spearheaded by the Ministry of Commerce is in its final stages and is expected to be presented soon.

It emphasises the need for a streamlined regulatory framework, technological advancements, and efficient supply chain integration. Key aspects of the policy include measures to ensure fair competition, protect consumer interests, and enhance the overall digital ecosystem.