Data Opportunities in the G20

The global politics of data is evolving rapidly as major and emerging digital economies such as the European Union (EU), the US, India, Indonesia and South Africa protect, monetize and protect the data collected in their regions for domestic purposes. tries to take advantage. The era of borderless data with limited or no government control, once an aspiration, appears behind us.

Growing privacy and security concerns, along with economic interests, have forced governments to establish rules and standards that control and restrict cross-border flows with natural implications for negotiating global trade and commerce. In fact, the vast amount of data being generated and shared globally has made it necessary for governments to exercise greater control over the use, sharing and cross-border flow of data. According to the Information Technology and Innovation Foundation (ITIF), data localization laws have more than doubled from 2017 to 2021, indicating that states want and need to increase the level of regulatory control over data.

Creating a Single Data Market

Data regulation efforts go beyond data localization. Easing its respect for self-regulation by firms, Joe Biden’s administration recently issued an executive order to boost competition in the US economy, addressing the challenges posed by the rise of major platforms and surveillance. Emphasis was placed on the use of antitrust policy for European policymakers have introduced a set of digital rules that put individual users on centre-stage, and enhance their data security. Through the proposed Data Act, the EU hopes to become a unique data power by creating a single data market, setting strong standards and deploying EU collective data for its own use.

As a growing ‘data market’ with significant stakes in multilateral and regional negotiations on data, how can India negotiate data when it assumes leadership of the G20?

The G20 appears as a viable forum to discuss data, especially for sharing and transferring, given the seemingly changed situation on data governance between the major G-7 powers and emerging economies. The state finds a bigger role in regulating data. In addition, the G20’s track record as the apex forum to discuss global economic issues legitimizes it and being the top (digital) economies makes it a suitable platform to discuss data. The G20 does not create binding rules, but serves as a platform to catalyze and inject new thinking around important current issues.

data sovereignty

India was far ahead of ‘data sovereignty’ Curve, branding it to justify domestic policy-making and flaming the stance in various international discussions, long before it became fashionable in northern jurisdictions. Since 2017, India has attempted to prioritize non-personal data, personal data, e-commerce regulation and the governance of artificial intelligence (AI) to use “India’s data for India’s development”. While these policies, including the recently withdrawn Personal Data Protection Bill, are in progress, it is not far from the vast ecosystem of actors – including experts, civil society and industry – actively involved and working to shape digital policy-making. are trying.

To underpin political rhetoric and drive global data discussions at the G20, the Indian government must present a holistic agenda that embeds data collection and sharing within a broad framework that prioritizes digital security, innovation and civil rights. Is.

For example, the Reserve Bank of India’s data localization directive has been in place for four years now. An empirical assessment of how start-ups affect both large technology companies and users can serve as a useful example. Has the localization yielded the expected security and economic benefits? Or has it suppressed digital innovation? Second, India’s digital economy management must transcend data localization in India and other G20 countries by highlighting best practices on data protection, competition law, data management, and responsible artificial intelligence. The ongoing effort to redraw the Personal Data Protection Bill and embed it within a ‘more comprehensive framework’ that addresses related concerns such as cyber security should serve as an urgent domestic priority, and India’s G20 The data can give weight to the approach.

By adding nuance to the prevailing ‘data’ narratives and allowing countries with diverse views to express themselves and engage meaningfully on important questions, India’s G20 tenure will mark an important phase in the global digital economy.

Arindrajit Basu is a Non-Resident Research Fellow at the Center for Internet and Society. Karthik Nachiappan is a Research Fellow at the Institute of South Asian Studies, National University of Singapore.