India leads global WASH innovation discourse at World Economic Forum 2025

• At the India Pavilion during the World Economic Forum (WEF) 2025 in Davos, a high-profile discussion on “India’s WASH Innovation: Driving Global Impact in Climate and Water Sustainability” was held, spotlighting India’s transformative work in water, sanitation, and hygiene (WASH) and its significant role in global climate resilience and sustainable development.
• Union Cabinet Minister for Jal Shakti, C.R. Patil, delivered the keynote address, highlighting India’s achievements through the Swachh Bharat Mission (SBM) and the Jal Jeevan Mission (JJM).
• These landmark initiatives have revolutionized sanitation and provided safe drinking water to millions of rural households across the country.
• Minister Patil said, “This marks a significant milestone, demonstrating to the world that under the visionary leadership of Prime Minister Narendra Modi, India is not only deeply committed to water conservation but is also driving a transformative revolution in this critical sector.
• We have made significant strides in strengthening our water resources, setting a global benchmark for sustainable water management.”
• Patil emphasized the need for global cooperation in addressing water scarcity, exacerbated by climate change, overpopulation, and overuse, and urged for collective international action.
• Reflecting on the progress of the Jal Jeevan Mission, Patil highlighted the remarkable increase in rural access to safe drinking water. “In 2019, only 17% of rural households had functional tap water connections. Today, 79.66% of rural households under JJM have access to safe drinking water.
•  This transformation is not just about water supply, but also about changing lives. Rural India now saves 55 million hours a day on fetching water, resulting in increased workforce participation, especially among women.”
• The session also provided a platform to showcase India’s WASH innovations and their impact on climate resilience, emphasizing equity and inclusivity in water, sanitation, and hygiene services.
• The keynote address was followed by two panel discussions: one on “Bringing Global Impact in Water Sustainability” and another on “Innovation in Global Health Through Sanitation.”
• These discussions featured experts from NMCG, UNICEF, WaterAid, the Gates Foundation, Riseberg Ventures, and actor-advocate Vivek Oberoi, who discussed innovations and strategies to advance water sustainability and sanitation worldwide.
• India’s WASH initiatives, such as the elimination of open defecation, the construction of over 95 million toilets under SBM, and widespread household tap water connections through JJM, have established India as a global leader in addressing water and sanitation challenges.
• Patil concluded by reiterating India’s role in advancing the United Nations Sustainable Development Goals (SDGs), particularly SDG 6 (Clean Water and Sanitation) and SDG 13 (Climate Action). India’s efforts, he added, have not only improved public health and education but have also created new economic opportunities and transformed lives, offering a model for other countries facing similar challenges.
• The session emphasized the importance of public-private partnerships in achieving the SDGs, with discussions focusing on India’s scalable models for sustainable water management and climate-resilient practices.
• These insights are expected to help shape global strategies for tackling the ongoing water crisis, which threatens health, food security, and economic stability worldwide.

The $500 billion Stargate Project, a golden opportunity for India to accelerate its AI ambitions

•  The $500 billion Stargate Project, a brainchild of OpenAI, Softbank, Oracle, and others, presents a golden opportunity for India to accelerate its AI ambitions by deepening partnerships with the US, industry experts said on Wednesday.
• This can be achieved by leveraging India’s role in the Critical and Emerging Technology (iCET) agreement between the two nations and the Indo-Pacific Economic Framework for Prosperity (IPEF)—co-developing cutting-edge technologies and scaling its domestic capabilities.
• “Proactive diplomacy, leveraging India’s role in iCET and IPEF, strategic investments, and collaborative approaches will be key to ensuring that India not only benefits from the global advancements in AI but also establishes itself as a formidable player in the international AI landscape,” .
• While the primary objective of the Stargate Project is to solidify the US’ leadership in the AI ecosystem, it also offers opportunities for India to leverage.
• Major companies supporting this initiative—such as Nvidia, Arm, Microsoft, Softbank, Oracle, and OpenAI—already have a significant presence in India and actively utilize Indian talent.
• “This offers Indian professionals opportunities to contribute to this monumental project, helping them enhance their expertise in cutting-edge AI technologies,”.
• There is cautious optimism that the US administration might consider industry feedback during the 120-day review period and adopt a more relaxed stance on AI export controls, especially toward India and other strategic partners.
• According to Dr. Ajai Chowdhry, founder of HCL and chairman of the National Quantum Mission, this initiative shows serious intent by the US to maintain strong control over AI, in addition to dominating the ownership of large language models (LLMs).
• “For strategic autonomy, we must create our own AI doctrine and start controlling our own data strongly. Also, we must develop domestic hardware for data centers, as it will be increasingly difficult to control our data otherwise,” .
• The government and the industry must work together to create a fresh strategy for AI, he added.
• India launched the IndiaAI Mission last year to enhance AI-related developments in the country. The Union Cabinet, chaired by Prime Minister Narendra Modi, approved an allocation of over Rs 10,300 crore for the IndiaAI Mission, marking a significant step toward bolstering the AI ecosystem in the country.
• According to the government, nearly 8.6 lakh candidates have enrolled in the IndiaAI ‘Future Skills’ initiative, developed in collaboration with industry partners, to provide training aligned with the latest requirements.

World Health Organization’s funding and the United States withdrawal

•  The World Health Organization (WHO) was established in 1948 as a specialised agency of the United Nations (UN), leading worldwide health initiatives and projects where they are needed, both nationally and regionally.
• The current membership of the WHO comprises 194 countries. The UN health body also partners with numerous other international entities and non-profit organisations.
• Its role spans promoting and guiding international health research, striving for universal health coverage, reinforcing emergency preparedness, and tackling non-communicable diseases.
•  Over the decades, WHO has set globally accepted norms and standards in healthcare, and its research and approvals have been recognised as the benchmark for health-related policies and practices across the globe.

Funding: Assessed and Voluntary

• WHO follows a biennial programme budget format. The document is finalised after member states approve a general programme of work. This budget outlines the organisation’s strategic direction and is drawn from a mix of assessed contributions, provided by member states, and voluntary contributions, coming from a variety of donors, including member states and other international and regional organisations.
• Assessed contributions reflect around 20% of the budget says the organisation and are calculated as a percentage of a nation’s GDP, as decided by the UN General Assembly. These member state contributions are fully flexible, allowing WHO the freedom to allocate funds where needed.
• Voluntary contributions, however, make up the lion’s share of WHO financing and usually come with donor-specified conditions. These funds are channelled from other UN organisations, international bodies, philanthropic foundations, industries, and member states in addition to their assessed contributions.
• Since the 1970s, voluntary contributions have taken centre stage in WHO’s budget, ultimately surpassing mandatory contributions. Critics have argued that reliance on donor-driven projects risks diverting the organisation from its core agenda and strategic role as a UN global agency, as it cannot always direct donor funds to the most pressing global health needs.
• Over time, the proportion of assessed contributions in WHO budget has steadily decreased. It slid from 46% in 1990 to 16% in the 2020–21 cycle, according to a WHO budgeting and planning report. In parallel, the share of voluntary contributions rose from 54% to 84% across roughly the same period. These figures remain similar in the 2024–25 budget, maintaining assessed contributions at approximately 16.8%.

Programme Budgets Through the Years

• WHO’s budget has grown over time, as reflected by its programme budget documents: USD 3.96 billion in 2012–2013, USD 3.98 billion in 2014–2015, USD 4.34 billion in 2016–2017, USD 4.42 billion in 2018–2019, USD 5.84 billion in 2020–2021, and USD 6.73 billion in 2022–2023.
• The current 2024–2025 budget stands at USD 6.83 billion, out of which USD 1.148 billion comes from assessed contributions. This represents 16.8% of the total 2024–25 programme budget, with the remaining amount expected to flow in from voluntary and other contributions.

From Voluntary to Assessed Contribution

• In recent years, WHO has advanced a transformation agenda to improve resource mobilisation and to secure more predictable financing. Central to this plan is the target that, by 2030, half of the organisation’s base budget should derive from assessed contributions rather than from external voluntary sources. All member states have agreed to this aim, reflecting a collective desire to ensure WHO’s continued autonomy in setting its strategic priorities.

The United States: A Major Funder

• The United States of America has historically been the largest contributor to WHO, both through assessed and voluntary means. Between 2012 and 2018, voluntary funding from the Unites States averaged around USD 254 million per year.
• In the 2024–25 period, the assessed contribution from the United States is recorded at USD 260 million, alongside a voluntary contribution of USD 698 million, putting its share of WHO’s programme budget at 14% until November 2024.
• Figures from previous budgets show the USA contributing USD 1.284 billion in total in 2022–23, equating to a 19% share, while Germany and the Bill & Melinda Gates Foundation provided USD 856 million and USD 830 million, respectively, in the same period. In 2020–21, the USA contributed USD 243 million through assessed funds and USD 461 million in voluntary amounts, which together represented 12% of that programme budget.
• In 2022–23, the top ten contributors to WHO were led by the United States, Germany at USD 856 million, and the Bill & Melinda Gates Foundation at USD 830 million. Other major contributions included GAVI’s USD 481 million, the European Commission’s USD 468 million, the United Kingdom’s USD 396 million, Canada’s USD 204 million, Rotary International’s USD 177 million, Japan’s USD 167 million, and France’s USD 161 million.

Funding Suspension by the United States

• In the recent past, there have been moments of tension between WHO and the United States government. On 14 April 2020, President Donald Trump announced the suspension of WHO funding, alleging that the organisation had mismanaged and covered up the spread of the coronavirus.
• In 2021, the Biden Administration resumed funding. However, in January 2025, Donald Trump became President again and suspended the country’s WHO funding for the second time, with the US ultimately withdrawing from the UN health body.
• Funding by the United States is important for the global health body, as reflected in the WHO’s comments after the withdrawal, “The World Health Organization regrets the announcement that the United States of America intends to withdraw from the Organization.
• WHO plays a crucial role in protecting the health and security of the world’s people, including Americans, by addressing the root causes of disease, building stronger health systems, and detecting, preventing, and responding to health emergencies, including disease outbreaks, often in dangerous places where others cannot go.”
• Being the largest funder, both currently and historically, the withdrawal of the United States significantly impacts the operations of the global health agency as it aims to make assessed contributions a major funding source by 2030, ensuring greater financial autonomy to meet its core functional agenda.
• As a dominant global player, the United States’ efforts, along with WHO, in global health policy, emergency operations, activities in the areas of war and conflicts, pandemic preparedness following the COVID crisis, global vaccination, global actions towards equal nutrition, and universal health coverage, offer a wider functional platform on global health needs across countries and regions.

Large Indian NBFIs poised to outperform amid economic and regulatory challenges: Fitch Ratings

• India’s large non-bank financial institutions (NBFIs) are better positioned to weather economic and regulatory challenges compared to their smaller counterparts, according to Fitch Ratings.
• While softer economic conditions, tighter bank funding, and asset quality concerns are expected to affect the sector’s credit growth and profitability in the near term, larger NBFIs with robust operations and diversified funding channels are expected to maintain steadier performance.
• The NBFI sector’s loan growth has decelerated from the high of 18 per cent recorded in the fiscal year ending March 2024 (FY24). Credit growth for NBFIs, excluding housing finance companies, moderated to 6.6 per cent between March and September 2024.
• This slowdown is partially attributed to weaker economic growth. Fitch revised its FY25 GDP growth forecast to 6.4 per cent in December 2024, down from 7.0 per cent, although the outlook for FY26 remains stable at 6.5 per cent.
• Regulatory tightening has also impacted the sector, raising the cost of capital and increasing compliance requirements. Measures introduced in the past 18 months include higher risk weights on bank lending to NBFIs and unsecured loans, as well as stricter rules on gold-backed loans and microfinance.
• Mid-sized and smaller NBFIs may face greater difficulties due to concentrated portfolios and limited access to funding. Regulatory enforcement, such as restrictions on new business activities, could further constrain their growth.
• Additionally, rising delinquencies in unsecured lending segments, such as microfinance and personal loans, have prompted lenders to tighten underwriting standards.
• Microfinance disbursements fell by 10 per cent year-on-year in the second quarter of FY25, with the sector’s delinquency ratio increasing to 3.8 per cent in September 2024, from 3.0 per cent in June 2024. Smaller NBFIs are expected to remain cautious as they adjust to these challenges.
• Larger NBFIs are better equipped to navigate the current environment. They are expected to sustain mid-to-high-teen credit growth in the coming years, supported by their established operations and access to diverse funding sources, including portfolio securitisation and offshore borrowing.
• Segments such as business loans against property and new commercial vehicle loans may experience softer demand, but robust collateral coverage and improved recovery processes should help maintain asset quality. Gold and housing loans are likely to remain resilient to economic headwinds.
• The cost of funding is unlikely to ease significantly, with bank lending rates remaining high. Bank lending to NBFIs slowed to 8.5 per cent year-on-year by November 2024, compared to 21 per cent a year earlier.
• However, local mutual funds have increased their subscriptions to NBFI debt, rising by 51 per cent year-on-year in November 2024.
• While larger NBFIs continue to expand their funding sources, smaller players are expected to encounter challenges in sustaining growth and profitability in the current environment.
• The near-term outlook for India’s NBFI sector remains mixed. While larger players are expected to demonstrate resilience, smaller and mid-sized NBFIs may face hurdles due to regulatory changes, funding challenges, and economic headwinds. However, the sector’s long-term prospects remain tied to broader economic stability and regulatory developments.

Centre reviews progress under National Health Mission

• The Union Cabinet on Wednesday was apprised on the progress made under the National Health Mission (NHM), including accelerated decline in Maternal Mortality Ratio (MMR), Infant Mortality Rate (IMR), Under Five Mortality Rate (U5MR) and Total Fertility Rate (TFR).
• The Cabinet also took note of the progress made in respect of various disease programmes like tuberculosis, malaria, kala-azar, dengue, leprosy, viral hepatitis, etc. and new initiatives undertaken such as National Sickle Cell Anaemia Elimination Mission.
• The NHM reported an increase in healthcare workers engaged over three fiscal years. In 2021-22, 2.69 lakh additional workers, including medical officers, specialists, staff nurses, AYUSH doctors, and others, were engaged, along with 90,740 Community Health Officers (CHOs). This expanded to 4.21 lakh workers, including 1.29 lakh CHOs, in 2022-23, and 5.23 lakh workers, with 1.38 lakh CHOs, in 2023-24. These measures have enhanced healthcare delivery at the grassroots level.
• Under NHM’s framework, India administered over 220 crore COVID-19 vaccine doses between January 2021 and March 2024. The India COVID-19 Emergency Response and Health Systems Preparedness Package was implemented in two phases to strengthen healthcare systems during the pandemic.
• Key health indicators showed improvements. The Maternal Mortality Ratio (MMR) declined to 97 per lakh live births in 2018-20, a 25% reduction from 2014-16. The Under-5 Mortality Rate (U5MR) decreased to 32 per 1,000 live births in 2020, and the Infant Mortality Rate (IMR) dropped to 28 per 1,000 live births in the same period. The Total Fertility Rate (TFR) declined to 2.0 by 2020.
• Disease elimination programs reported progress. The tuberculosis (TB) incidence rate reduced to 195 per 1,00,000 population in 2023 from 237 in 2015, while the mortality rate dropped from 28 to 22 during the same period. Malaria-related deaths decreased by 7.77% in 2022 compared to 2021. Kala-azar was eliminated in 100% of endemic blocks by 2023, achieving a target of less than one case per 10,000 population.
• Other health initiatives included the Pradhan Mantri TB Mukt Bharat Abhiyaan, supporting 9.40 lakh TB patients through 1.56 lakh volunteers, and the Pradhan Mantri National Dialysis Programme, which facilitated 62.35 lakh hemodialysis sessions in 2023-24, benefiting over 4.53 lakh dialysis patients.
• The National Sickle Cell Anemia Elimination Mission screened 2.61 crore individuals in tribal areas by 2023.
• Digital health platforms such as U-WIN, launched in January 2023, improved vaccine tracking and coverage across 65 districts by March 2024. Additionally, 7,998 public health facilities received certification, and operational Ayushman Arogya Mandir centers increased to 1,72,148, with 1,34,650 providing 12 essential healthcare services.
• NHM has also addressed pressing public health concerns such as tobacco use and snakebite envenoming.
• Through sustained public awareness campaigns and enforcement of tobacco control laws, NHM has contributed to a 17.3% reduction in tobacco use over the past decade.
• Since its inception as the National Rural Health Mission in 2005 and its rechristening as the NHM in 2012 to include urban healthcare, the initiative has consistently focused on providing accessible, affordable, and quality healthcare to vulnerable populations. With its comprehensive achievements, the NHM continues to be a cornerstone of India’s public health landscape.

India achieves milestone in hypersonic technology with 1st scramjet test success

• The Defence Research and Development Organisation (DRDO) has successfully conducted a 120-second ground test of an active-cooled scramjet combustor. This marks the first such achievement in India, with long-duration hypersonic technologies usage in the offing.
• Hypersonic missiles, which travel at speeds exceeding Mach 5 (over 5,400 km/h), are poised to redefine India''s modern warfare.
• Their ability to evade air defence systems and deliver high-impact strikes has led global powers like the United States, Russia, China, and India to focus on hypersonic research.
•  At the heart of hypersonic systems is the scramjet engine — a supersonic combustion ramjet that sustains combustion at extreme speeds without moving parts. DRDO’s ground test demonstrated critical milestones, including successful ignition and stable combustion, vital for operational hypersonic vehicles.
• Defence Minister Rajnath Singh heaped praise upon DRDO and its partners, calling the accomplishment a "crucial step towards self-reliance in hypersonic missions"
• DRDO Chairman Dr Samir V Kamat also commended the DRDL team for their innovation and dedication to strengthening India’s defence capabilities.

KEY FACTORS FOR SUCCESS

• Successful flame stabilisation, advanced simulations and indigenous scramjet fuel were key factors that contributed to positive output.
• Flame stabilisation: DRDO developed techniques to maintain continuous combustion at air speeds exceeding 1.5 km/s, a challenge often compared to “keeping a candle lit in a hurricane.”
• Advanced simulations: The engine design underwent Computational Fluid Dynamics (CFD) simulations to predict and optimise performance.
• Indigenous scramjet fuel: DRDO, in collaboration with industry partners, developed India’s first endothermic scramjet fuel. This advanced fuel simplifies ignition, enhances cooling, and meets industrial-scale requirements.

BREAKTHROUGH IN THERMAL MANAGEMENT

• Defence Research and Development Laboratory (DRDL), a Hyderabad-based laboratory under the Defence Research and Development Organisation, partnered with the Department of Science and Technology (DST) to create a high-performance Thermal Barrier Coating (TBC) that is capable of withstanding temperatures beyond the melting point of steel.
• The ceramic TBC, applied inside the scramjet engine using advanced deposition methods, ensures durability and performance in extreme conditions.

Scramjet Technology:

• A Scramjet is a type of air-breathing engine that can sustain combustion at supersonic speeds (greater than Mach 5, i.e., over 5,400 km per hour) without the need for any moving parts.
• These engines are vital for hypersonic missiles, which are designed to travel at speeds that are more than five times the speed of sound.

Key aspects of Scramjet engines:

• Air-breathing: Unlike traditional rockets that carry their oxidizer, Scramjets rely on atmospheric air for combustion, making them efficient for high-speed flight.
• No moving parts: Scramjets are unique in that they don’t have any moving parts, unlike traditional jet engines, which rely on turbines and compressors.
• High-Speed Combustion: They are designed to work at supersonic and hypersonic speeds (above Mach 5), ensuring efficient combustion and propulsion in such extreme conditions.
• Significance of the Development:
• Bypassing Air Defence: Hypersonic missiles, which can achieve speeds greater than Mach 5, are difficult to intercept by existing air defense systems. This technology will enable India to develop next-generation missile systems with superior strike capabilities.
• Global Competition: Countries like the  Russia, and China are also in active pursuit of Scramjet technology for their hypersonic missiles, making this development by India crucial for maintaining technological parity in global defense.
• Strategic Importance: The development of hypersonic missiles will enhance India’s defense capabilities and strategic deterrence, making it a significant player in the global defense landscape.
• Technological Leadership: India’s achievement in developing cutting-edge technologies like the Scramjet engine and the thermal barrier coating showcases the country’s growing technological prowess in aerospace and defense.

 Isro rolls out GSLV-F15 on launch pad with NVS-02: All you need to know

•  The Indian Space Research Organisation has rolled out the s Geosynchronous Satellite Launch Vehicle (GSLV) on the launchpad with the NVS-02 Satellite, part of the Navigation with Indian Constellation (NavIC).
• The GSLV-F15 mission will launch on January 29, 2025 from the Second Launch Pad (SLP) at Satish Dhawan Space Centre, SHAR and place the NVS-02 satellite into a Geosynchronous Transfer Orbit.
• This will be the eighth operational flight of the GSLV with an indigenous Cryogenic stage and the 100th Launch from India’s Spaceport Sriharikota.
• NVS-02 is the second satellite in India’s new generation of navigation satellites, part of the Navigation with Indian Constellation (NavIC) system.
• NavIC is India’s regional satellite navigation system, designed to provide accurate positioning, velocity, and timing information for users in India and nearby regions, up to 1,500 km beyond India.
• NVS-02 will help improve NavIC''s services, which are used for navigation, precision agriculture, emergency services, fleet management, and even mobile device location services. It carries an advanced navigation payload operating in three frequency bands (L1, L5, and S) to ensure high accuracy.
• It also has a precise atomic clock called the Rubidium Atomic Frequency Standard (RAFS) for accurate timekeeping.
• The satellite will replace an older NavIC satellite, IRNSS-1E, and be positioned at 111.75°E in orbit.
•  Weighing 2,250 kg, NVS-02 has a power capacity of around 3 kW and uses both indigenous and imported atomic clocks for better accuracy. By incorporating new L1 band signals, NVS-02 improves NavIC’s compatibility with global navigation systems, ensuring wider adoption and better service.
• The NVS-02 satellite has been meticulously designed, developed, and integrated at the U R Satellite Centre (URSC).
• After completing the Assembly and Integrated Testing (AIT), the satellite underwent a rigorous thermal vacuum (thermovac) test during November-December 2024. This test was conducted to verify and validate its design and performance in a simulated space environment, ensuring it could operate effectively under the harsh conditions of space.
• In December 2024, the satellite was subjected to a dynamic test to confirm its ability to withstand the mechanical loads anticipated during launch. This critical test validated the structural integrity of the satellite and its readiness for deployment into orbit.

India evaluates impact of US proposal on AI chip export restrictions

• India is evaluating the impact of the US proposal to impose restrictions on AI chip exports, as the move could have implications on the development of emerging technologies here, official sources said on Thursday.
• The US administration has proposed a new framework that restricts the import of artificial intelligence chips due to national security concerns about the technology and economic interests of producers and other countries.
• The proposal has no restriction for 18 key allies of the US, which have been clubbed under Group 1, but there are restrictions on the quantity that can be exported to other countries under Group 2, including India.
• The new rules mainly focus on advanced computing chips (which power AI systems) and AI models (software programs that process data to create outputs like information or media). These chips are crucial for developing AI technologies.
• The BIS is dividing countries into three tiers with different rules for exporting AI chips and technology:
• Tier 1: No restrictions for 18 U.S. allies and partners (like Australia, UK, Japan, South Korea). They can get AI chips without extra approvals.
• Tier 2: Countries like China and India are in this group. These countries can get chips, but only under certain conditions. For example, if the technology is used for advanced AI development, they need special permission (called Validated End User authorization). Basic chips with less computing power don’t need approval.
• Tier 3: Countries like North Korea, Iran, and Russia are restricted from getting this technology at all due to national security concerns.
• The semiconductor industry body IESA has stated that the proposed restrictions will challenge the country''s plan for AI hardware, crucial for the local development of emerging technologies.
• India''s National AI Mission aims to develop infrastructure with over 10,000 GPUs (graphics processing units) through public-private partnerships, supported by a Rs 10,000 crore investment over five years.
• "In the short term, the new export controls may not significantly impact India. However, the uncertainty of securing licenses and trade negotiations could challenge India''s ambitions for large-scale AI hardware deployment,
• The main concern of U.S is that adversaries could use advanced AI systems for military purposes, like improving their decision-making, planning, or logistics.
• There’s also a fear that these technologies could help make weapons of mass destruction or support cyber attacks and human rights abuses.
• The U.S. government also worries about Chinese companies using subsidiaries in other countries to bypass these restrictions and buy U.S. chips.
• Impact on India: For India, the rules could affect companies that want to use advanced AI chips for big data centers. Indian companies may need to apply for special authorization to get these chips quickly.
• However, India is not in the group of trusted U.S. allies because of past issues with chips being sold to Russia. This means that Indian companies may face extra hurdles when buying advanced technology from the U.S.

Data Protection Act and its actions on Data

• After years of deliberations and several drafts, a comprehensive digital personal data protection law is closer to reality. The Ministry of Electronics and Information Technology released its regulations on the draft of the Digital Personal Data Protection Rules in January .
• The Act, which outlines how companies and government agencies should handle digital personal data, is open for consultation until February 18.
• The Act was first introduced in the Lok Sabha on August 3, 2023, and was passed in the Lower House on August 7. It was then introduced in the Rajya Sabha on August 9 and passed the same day.
• It became the Digital Personal Data Protection (DPDP) Act, 2023, following the President''s approval on August 11. The DPDP Act applies only to data processed digitally and does not apply to analogue data processing.

Why do we need a data protection law

• Over the past decade, India has experienced exponential growth in digital adoption, with millions of people relying on online services and social media platforms for various aspects of their lives. The absence of a comprehensive data protection law in India has left citizens vulnerable to data breaches, identity theft, and other forms of cyber exploitation.
• The DPDP Act 2023 aims to address these concerns by providing a clear framework for data protection. It ensures that companies obtain permission before collecting and using personal data. It also mandates that they collect only the data necessary for their operations and take adequate measures to keep personal data safe and secure.

Built-in protection

• The Act mandates that digital platforms get user permission before using their personal information. These platforms must also provide clear ways for users to withdraw their consent, access information about how their data is being used, update or delete their data, address grievances, nominate representatives, and file complaints with the Data Protection Board (DPB).
•  Platforms can also use independent consent managers to help collect and manage user permissions. In the event of a data leak, companies must inform individuals within a specified timeframe about its extent and the steps to contain it.

Working process

• A data principal — any child or adult — gives consent through a consent manager. A consent manager is a registered person or entity with the DPB, acting as a single point of contact to help individuals give, manage, review, and withdraw consent using an accessible, transparent, and interoperable platform.
• The consent manager serves as an intermediary to facilitate the consent process. This role is similar to that of account aggregators under the Reserve Bank of India’s guidelines.
• The content so collected is processed by  a data fiduciary, which is any person or organisation that determines the purpose and means of processing personal data. Non-compliance with the DPDP Rules could result in fines ranging from Rs 50 crore to Rs 250 crore, depending on the severity of the violation, as outlined in the DPDP Act.

Data retention span

• Under the provisions, if a data fiduciary processes personal data for various purposes and the data principal (individual) does not interact with the fiduciary within a specified period, the personal data must be erased unless required for legal compliance.
• The retention period varies depending on the type of data fiduciary, such as e-commerce platforms, online gaming intermediaries, or social media companies.
• These entities can retain personal data for up to three years from the last interaction or the effective date of the rules, whichever is later, unless the data is needed for account access or virtual tokens.
• Before erasing the data, companies must notify individuals at least 48 hours in advance, allowing them to log in or contact the fiduciary if they wish to retain their data.

Significant data fiduciaries

• The Act outlines specific responsibilities for significant data fiduciaries, which include companies like Facebook, Instagram, Twitter, YouTube, Google, Bing, and e-commerce platforms such as Amazon and Flipkart.
• These entities process large volumes of personal data, have a significant impact on individuals'' rights, or operate in critical sectors. The key obligations for significant data fiduciaries include regularly assessing the risks to individuals'' rights from their data processing activities, conducting annual audits, and reporting to the Data Protection Board and other relevant authorities.

Data Protection Board

• To ensure the proper implementation of the DPDP Act, the government will establish a Data Protection Board (DPB). The board will play a key role in balancing the rights of individuals (data principals) and the responsibilities of companies (data fiduciaries). The DPB will mainly operate online, focusing on efficiency and accessibility. It will handle complaints about data breaches, ensure companies follow data protection rules, and monitor companies for compliance.
• If a company fails to comply, the board can issue orders, suspend their operations, or revoke their registration.
• Individuals unhappy with the DPB’s decisions can approach the appellate tribunal. Appeals must be filed digitally

Data breach

• According to the Act, when a data fiduciary becomes aware of a personal data breach, it must promptly notify all affected data principals or individuals. The notification must be clear and straightforward, explaining the nature, extent, and timing of the breach, along with the potential consequences for those affected.
• The company must also inform individuals of the measures taken to mitigate risks and provide recommendations for protecting their data.
• The data fiduciary is also required to notify the data protection board without delay. They must also report on the remedial steps being taken to prevent future breaches and the details of notifications sent to the affected data principals.

Child data

• The DPDP Act mandates that children under the age of 18 need parental consent to create accounts on social media platforms like Meta, Tinder or YouTube. Social media companies must verify the age of minors and the identity of their parents or guardians when obtaining consent.
• The Act proposes two methods for verifying parental consent. If the parent already uses the platform, it can rely on the parent’s existing age and identity information.
• For example, if a child wants a YouTube account and the parent has a verified YouTube account, the platform can use the parent''s information to verify their identity. If the parent does not use the platform, the child’s identity and the parent''s consent can be verified through an authorised entity, such as a government body or a digital locker service.
• Minister of Electronics and Information Technology, Ashwini Vaishnaw, explained that companies could use virtual tokens linked to a parent''s identity and age, which would be voluntarily provided by the parent.
•  These tokens will be created by the industry itself and could be linked to multiple forms of identity, depending on how the system evolves over time.
• There are a few exceptions, including that healthcare professionals can process a child’s data without parental consent when it''s necessary to provide health services or protect the child’s health.
• Educational institutions can also process data for educational purposes. Similarly, entities providing subsidies, benefits, certificates, or licenses can process a child’s data to provide those services. Failure to comply with the safeguards can result in a fine of up to Rs 200 crore.

The exemptions

• Under the Act, the government is granted exemptions to process personal data, including that of minors, for specific purposes.
•  These include providing subsidies, benefits, services, certificates, licenses, or permits by the state and its instrumentalities. However, government agencies must adhere to strict standards when processing such data.
• These standards include limiting data processing to what is necessary for specific purposes, retaining personal data only for as long as required, and ensuring reasonable security measures to prevent data breaches.
• The provisions of the Act shall not apply to the processing of personal data necessary for research, archiving, or statistical purposes if it is carried on in accordance with the standards specified in the Second Schedule of the Constitution.

Processing data outside India

• The Act regulates the transfer of personal data outside India. If a data fiduciary processes personal data in India or abroad while offering goods or services to people in India, they must follow certain rules.
• The fiduciary must meet requirements set by the Central government, which can be issued through general or special orders. These rules control how personal data can be shared with foreign countries, organisations, or their agencies, ensuring that the privacy of Indian citizens is protected.