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Home » News » Proposed data protection rules will overburden MSMEs and hinder exports

Proposed data protection rules will overburden MSMEs and hinder exports

Jessica BrownBy Jessica Brown Business
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An approach based on the risk for data protection could allow India to simultaneously protect users' rights and unlock their potential as a global manufacturing and export power

An approach based on the risk for data protection could allow India to simultaneously protect user rights and unlock their potential as a global manufacturing and export power | Photo credit: Kraisorn Waipongsri

India proposal data protection rules will overload MSME and hinder the country’s export ambitions in the current global political environment, Induslaw Firm said while organizing a virtual discussion panel on the protection of personal data.

Speaking about the impact on small businesses, C

Data location could complicate trade

To completely take advantage of current geopolitical changes around tariffs, panelists requested that India improve their ease of doing business by guaranteeing simpler and more proportional compliance frameworks in the rules. An approach based on the risk for data protection could allow India to simultaneously protect user rights and unlock their potential as a global manufacturing and export power, although not doing so runs the risk of discouraging investment and innovation, the company said.

Kamesh Shekar, senior program manager, privacy, data government and CO-LEDER-AI, dialogue, said: “Data location requirements could further complicate the development and training of AI models, which applies to the deposit of the deposit of the innovation of mechanical data flows” or the alternative legal bases, which are available in the frame GDPR, the risks of India that limit innovation that is difficult for companies to access various, global data, global data data for the model and accessory of Indian data. “

About children’s data

The speakers argued that the rules will lead to significant implementation challenges around the verifiable mechanisms of parents’ consent.

Meghna Bal, director of the Esya CenterHe said: “According to a study by the ESYA center, 76 percent of children prefer personalized content. And 73 percent said they would feel uncomfortable/ insecure if the content was deersonalized. For ads aimed at ads aimed at ads to the non -educational scanning scan ads (yous, movies, movies) meaning for the directed ads that were directed.

Meanwhile, other panelists expressed concerns about the current binary verification model, which verifies only two methods. The general restriction of advertising and the monitoring of the behavior for minors was also marked as broad and misaligned with real online behavior patterns among children.

Design privacy

Experts asked for the adoption of technologies to improve privacy that embed design by design. They asked to re -evaluate the traditional notions of consent and notification, calling for consent alternatives that can support response innovation. In addition, panelists stressed that a specific vertical regulatory framework, as a sea, would be more effective to address the unique risks and needs of different sectors.

Posted on April 16, 2025

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