Data marketplaces: the next frontier

Data: Fueling India's $5 Trillion Dream

• Digitization, powered by data and AI, has the potential to significantly boost India's GDP.
• Government operations are rapidly becoming digital, generating large volumes of citizen data.

Non-Personal Data (NPD): A Public Good

• NPD, data without personal identifiers, holds immense potential for public benefit.
• Integrating NPD across various sectors can lead to better-informed decision-making and improved public services.
• Examples include predicting weather patterns, optimizing infrastructure usage, and understanding employment trends.

The Regulatory Gap: A Hurdle for NPD Utilization

• Unlike personal data, there's a lack of clear regulations governing NPD use in India.
• While efforts are underway (e.g., Kris Gopalakrishnan Committee Report), a robust legal framework is yet to be established.
• This lack of regulation hinders the optimal use of NPD for public good.

Data Exchanges: Potential and Pitfalls

• Data exchanges can facilitate data sharing between stakeholders, leading to better decision-making.
• However, unrestricted data flow raises concerns about privacy breaches and misuse by powerful entities.
• Faulty data analysis can also lead to ineffective policies.

The National Data Governance Framework Policy (NPD Framework): A Step Forward, But Incomplete

• The NPD Framework, a pioneering policy, lacks practical implementation details.
• It doesn't address crucial aspects like stakeholder rights, data pricing, and legal structures for data exchange.

The Path Forward: Strengthening the NPD Framework

• A critical review of the NPD Framework is needed to address existing gaps.
• Establishing clear regulations for data exchanges is essential for maximizing the benefits of NPD.
• Learning from countries like Australia and the UK that have implemented successful data exchange frameworks can be valuable.

Blueprint for Governance

• Several Indian entities are establishing data exchanges for various purposes.
• The lack of a national framework for data exchange governance creates potential issues.
• Developing a blueprint would:
  • Align with global discussions on data exchange regulation.
  • Support the efforts of MeitY and other bodies regarding NPD governance.
  • Provide a practical roadmap for implementing NPD principles.
  • Establish a future-oriented framework for NPD governance in data exchanges.

The Need for a Blueprint:

• Ensures consistency and avoids fragmented approaches across different data exchanges.
• Addresses concerns about data privacy and misuse within data exchange systems.
• Provides clarity on data ownership, sharing mechanisms, and stakeholder rights.
• Creates a foundation for efficient and secure data exchange across sectors.