Big digital push needed to reach $5-trillion economy: IAMAI report

Data governance, cybersecurity, encryption and surveillance along with technologies like cloud computing, artificial intelligence and Internet of Things are the core areas requiring policy focus for India. 

These will help realise the country’s $5 trillion economy target, according to a recent study by industry association Internet and Mobile Association of India (IAMAI). 

Digitisation of services will be an essential step towards achieving the $5 trillion goal. However, India’s regulatory approach should focus on regulating ‘core’ industry players, and not entities that fall on the ‘edge’ of the regulatory spectrum.  This can be done by drafting clearly articulated outcome-based regulations, the report, titled ‘Digital Technology Policy for India’s $5 Trillion Economy,’ said. 

“Participative regulatory models will not only help us address emerging challenges in India’s digital economy, but will also allow us to position ourselves as a technology-friendly jurisdiction. In our view, consultative regulatory frameworks comprise clear, transparent and effective dialogue at every stage between the government and all stakeholders. There should an appetite for innovative structures such as regulatory sandboxes and a willingness to enhance regulatory capacity and measure performance,” noted the report, which was prepared by technology-focused law firm Ikigai Law. There has been a huge focus on companies and apps that qualify as intermediaries, with the Ministry of Electronics and IT last year proposing changes to Section 79 of the Information Technology Act, 2000, which seeks to regulate such firms. 

The report notes that the safe harbour provision for intermediaries, which provides some protection to intermediaries from content hosted by third parties on their platforms, must be preserved.

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