• UGI USER
  • Mar 21, 2024
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DATA MARKETPLACES: THE NEXT FRONTIER

Syllabus:

GS 3:  

  • Indian Economy and issues
  • Science and Technology- Developments and their Applications

 GS 2:  E-governance- applications.

Why in the news?

Data marketplaces and governance reforms spotlighted to harness data’s potential, addressing regulatory gaps and fostering economic growth.

source:thinkdata

Understanding The Significance of Data in India’s Economic Growth

  • A NASSCOM report suggests that data and artificial intelligence (AI) could contribute significantly to India’s GDP by 2025.
  • Role of Digitization in Economic Growth:
    • Digitization is crucial for India’s goal of becoming a $5 trillion economy.
  • Data and AI can potentially add $450-500 billion to India’s GDP by 2025.
What is the National Association of Software and Services Companies (NASSCOM) ?

●     National Association of Software and Services Companies (NASSCOM) is a non-profit industry association.

●     It serves as the apex body for the IT industry in India.

●     Established in 1988, NASSCOM is dedicated to supporting the IT and BPO sectors.

●     Its members include Indian companies involved in software development, software services, and IT-enabled/BPO services.

●     NASSCOM ensures service quality and enforces Intellectual Property Rights within the Indian software and BPO industry.

Understanding Internet of Things (IoT):

●     IoT comprises various devices, from sensors to smartphones and wearables.

●     Devices in IoT can communicate with each other and with the internet.

●     It enables communication across different networks, fostering a more connected world.

About Internet Corporation for Assigned Names and Numbers (ICANN):

●     Internet Corporation for Assigned Names and Numbers (ICANN) is a non-profit organisation.

●     Established in 1988 by the US Department of Commerce, it administers domain names and IP addresses globally.

●     It ensures computers can find each other on the internet through unique identifiers.

●     Became independent of US control in 2016.

About Citizen data includes Personal Data (PD) :

  • Government digitization efforts lead to the accumulation of increasing volumes of citizen data.
  • Citizen data includes Personal Data (PD) and Non-Personal Data (NPD), with NPD holding the potential to serve as a public good.
  • Integration of Non-Personal Data in Public Services
  • Advocates suggest integrating NPD into public service delivery to enhance scalability and develop solutions for societal and economic challenges.
  • Advanced analytics and AI applications on NPD can predict favourable outcomes in various sectors.

Understanding  Non-Personal Data (NPD):

  • Integration of NPD in Public Services:
    • Advocated for creating synergies and scalable solutions in public service delivery.
    • Application of advanced analytics and AI to NPD can predict socially and economically sound outcomes.
  • Challenges with NPD Regulation:
    • Stark absence of regulation for NPD compared to PD.
    • Efforts at the executive level but lacking comprehensive regulation.
  • NPD Governance Framework:
    • The Kris Gopalakrishnan-led committee addressed issues like de-anonymization risk and data sharing mechanisms.
    • MeitY released the National Data Governance Framework Policy to address gaps.
  • Reforms Needed:
    • Designing regulatory frameworks to regulate NPD and facilitate data exchanges.
    • Creating scalable data exchange ecosystems to deploy advanced analytics.
    • Addressing privacy concerns and ensuring stakeholder rights and obligations.
  • Examples from Other Countries:
    • Australia, UK, and Estonia have adopted data exchange frameworks for various sectors.
    • India’s initiatives include Telangana’s agriculture data exchange and India Urban Data Exchange by the Ministry of Housing & Urban Affairs.
  • Gaps in NPD Framework:
    • Lack of tangible guidance for achieving abstract principles.
    • Overlooking operationalization and stakeholder rights.
  • Absence of standardised governance tools and mechanisms for data pricing and exchange.

About the Initiatives in India:

  • States like Telangana have established sector-specific data exchanges, while the central government has initiated projects like the India Urban Data Exchange.
  • However, a comprehensive blueprint for governing data exchanges is lacking.
  • Gaps in the National Data Governance Framework.
  • The NPD Framework in India lacks actionable guidance, leaving questions regarding stakeholder rights, pricing of data, and legal structures unanswered.
  • Standardised governance tools and operationalization mechanisms are necessary to address these challenges.

Challenges:

Digital Exclusion:

  • Risk of exacerbating the digital divide, with many still lacking internet access.
  • Potential for frontier technologies to benefit only certain segments, leaving the poorest behind.

Uncertain Future of Work:

  • Automation threatens the jobs of millions, particularly in the Asia-Pacific region.
  • Concerns about job displacement and the need for reskilling and up-skilling

Challenges in Non-Personal Data Regulation:

  • Unlike Personal Data, NPD lacks comprehensive regulation.
  • Regulating NPD exchanges across sectors is essential to ensure data privacy, facilitate inter-sectoral integration, and mitigate administrative burden.

Trust and Ethical Questions:

  • Ethical dilemmas regarding privacy, data ownership, and transparency.
  • Governance complexities amid global population growth and diverse cultural contexts.

Way  forward :

  • Agriculture: Enhancing productivity, precision farming, and sustainable practices.
  • Manufacturing: Revolutionising production processes, customization, and efficiency.
  • Services: Facilitating trade, digital platforms, and bridging formal and informal sectors.
  • Governance: Improving public administration, service delivery, and transparency.
  • Environment: Mitigating climate hazards, pollution, and promoting eco-friendly
  • Smart Cities: Songdo, South Korea, exemplifies IoT integration for traffic management, energy efficiency, and environmental sustainability.
  • Sustainable Development: Aligning technological advancements with societal and environmental goals outlined in the 2030 Agenda.

Conclusion:

Provide actionable guidance to achieve NPD governance objectives.Formulating a robust regulatory framework for governing data exchanges in India is imperative.This framework should provide actionable pathways, standardised tools, and mechanisms for operationalization, aligning with global best practices.Author’s Affiliation Jyotsana Singh, a research fellow at the Vidhi Centre for Legal Policy, specialises in applied law and technology and Fintech verticals.

Source: The Hindu

Mains Practice Question:

Discuss the emergence of data marketplaces as the next frontier in the context of India’s digitization drive and the challenges associated with the governance of non-personal data (NPD). How can India formulate a policy framework to address the gaps in NPD governance and ensure inclusivity and transparency in data exchanges?