India House approves bill to simplify BigTech data compliance

India House approves bill to simplify BigTech data compliance

The Evolving Landscape of Data Compliance in India’s Blockchain Industry

India’s lower house of parliament recently approved a bill that aims to ease data compliance regulations for Big Tech companies. The Digital Personal Data Protection Bill 2023, if finalized, could have significant implications for major global tech giants like Google, Meta (formerly Facebook), and Microsoft, as well as local firms seeking international expansion.

At present, the bill requires government consent before Big Tech companies can collect personal data. It also prohibits the sale of personal data for purposes not outlined in the contract. This means that personal data cannot be anonymized for use in artificial intelligence (AI) training, for example. However, the new legislation would relax these compliance requirements, enabling companies to collect and transfer data obtained from India, except to countries prohibited by the government.

India, as the world’s most populous country with billions of internet users, represents a key market for global tech players. The potential ease in compliance regulations could pave the way for accelerated growth and expansion opportunities for these companies within the Indian market.

Addressing Concerns over Data Misuse

Concerns over data misuse have become a top priority for regulators worldwide, particularly in relation to Big Tech companies and the emerging tech industry. As AI rapidly gains popularity and accessibility, regulators have grown increasingly concerned about the collection and utilization of user data.

The proposed legislation in India reflects a broader global trend towards tightening data compliance and protection regulations. Collaborations between India and the United States, aimed at creating an international framework for AI, underscore the growing need for cohesive policies to address this issue.

One significant development highlighting the potential risks of data collection is the launch of Worldcoin, a decentralized digital identity verification protocol. This project has deployed 1,500 iris scanning orbs worldwide, with two located in India’s cities of Delhi and Bangalore. As emerging technologies continue to evolve, the need for robust data protection measures becomes more critical.

Implications for the Blockchain Industry

The approval of the Digital Personal Data Protection Bill 2023 signifies India’s commitment to balancing data privacy concerns with the growth of its tech industry. By easing compliance requirements for Big Tech companies, the legislation aims to foster innovation and expansion opportunities while ensuring data protection.

For blockchain technology, which forms the backbone of cryptocurrencies and decentralized applications, data compliance is of utmost importance. Blockchain’s distributed ledger system offers enhanced security and transparency by recording transactions in a tamper-proof manner. However, compliance with data protection regulations such as the Digital Personal Data Protection Bill is crucial to maintain public trust and enable the industry’s wider adoption.

In the blockchain industry, there are several technical terms and concepts that play a significant role in ensuring data compliance and protection. Familiarizing ourselves with these terms can help us navigate the complex landscape of blockchain technology:

  1. Decentralization: Blockchain operates on a decentralized network, meaning data is not stored on a single server but across multiple computers (nodes). This ensures that no single entity has complete control over the network, mitigating the risk of data misuse or manipulation.

  2. Immutable ledger: Blockchain’s core feature is its immutable ledger, where each transaction is recorded in a permanent and unalterable manner. This provides auditable and traceable records, enabling transparency and accountability in data handling.

With these features, blockchain technology can serve as a powerful tool in ensuring data compliance in the digital age. By leveraging blockchain’s decentralized and immutable nature, companies can enhance data security, prevent unauthorized access, and uphold user privacy.


The approval of the Digital Personal Data Protection Bill 2023 in India’s lower house of parliament reflects the growing need to strike a balance between data compliance and innovation in the tech industry. The legislation aims to ease compliance requirements for Big Tech companies, enabling them to collect and transfer data obtained from India, except to prohibited countries.

As concerns over data misuse and privacy continue to rise, collaborations between countries highlight the need for an international framework to address these issues. In the blockchain industry, the use of decentralized ledger technology offers enhanced security and transparency, making it a viable solution for data compliance. Understanding the technical concepts and terms associated with blockchain can empower individuals and organizations to navigate this evolving landscape and ensure the responsible and ethical use of data in the digital era.