MeitY raises alarm over data breaches impacting trust in DPI initiatives

DPI which stands for digital public infrastructure includes Aadhaar, UPI and so on

The Ministry of Electronics and Information Technology (MeitY) is concerned about the impact of data breaches on digital public infrastructure (DPI), particularly regarding the retention of citizens' trust in such initiatives, an internal presentation by the ministry revealed.

"High-profile data breaches and incidents erodes public trust in DPI initiatives," said the presentation, which focused on the broader theme of the Digital Personal Data Protection Act.

The presentation was made to stakeholders in June, following the swearing-in of the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) government for a third consecutive term. Moneycontrol has reviewed a copy of the presentation.

Distrust around India's DPI, especially Aadhaar, arises from privacy and security concerns. Issues include data breaches, unauthorised access, and potential misuse of the biometric and demographic data collected. Critics also worry about the centralisation of sensitive data making it vulnerable to cyber attacks and the lack of strong legal frameworks to protect privacy.

According to the presentation, the ministry is also finding it challenging to strike the right balance between data access for service delivery and data protection. "Striking the right balance between data access for service delivery and data protection -- a complex challenge," it said.

This issue is significant because, although the DPDP Act has been passed by Parliament and enacted into law, it has yet to be implemented. Once in effect, the Act will establish checks and balances on how citizens' personal data is processed.

Apart from that, especially when it comes to DPI, the ministry is also concerned about the correlated necessity of processing of personal data, and how that is an "attractive target for cyber criminals".

Moneycontrol has reached out to the ministry for comments on the matter and the article will be updated when a response is received.

Moneycontrol previously reported on the IT ministry's concerns about Big Tech's impact and increased data usage, which "make people vulnerable" by exposing "patterns, trends, and associations."

The government also expressed worries about citizens' expanding digital footprint and the rising demand for computational power due to increased data usage by Big Tech.

In recent years, the government has reprimanded Big Tech for non-compliance with IT rules and blocking orders. It plans to introduce regulations like the draft digital competition bill, which will significantly affect Big Tech operations.