Data marketplaces: the next frontier

Context:

The digitization of government operations and the proliferation of citizen data in India underscore the need for effective governance frameworks for Non-Personal Data (NPD), crucial for maximizing data-driven governance and economic growth.

Non-Personal Data (NPD) Governance:

• Potential Economic Impact: Reports suggest that integrating NPD into public services could add significantly to India's GDP by 2025. Application of advanced analytics to NPD can inform governance decisions across various sectors, from disaster forecasts to employment trends.
• Absence of Regulation: Unlike Personal Data, NPD lacks enforceable regulatory frameworks. Efforts at the executive level have been made, including the National Data Governance Framework Policy (NPD Framework), but gaps remain, leading to unregulated data exchanges and sub-optimal policy decisions.
• Challenges and Opportunities: Unregulated NPD flows pose privacy risks and hinder effective decision-making. Addressing gaps in the NPD Framework and formulating robust governance structures for data exchanges can enhance data interoperability, automate public-welfare functions, and reduce administrative burdens.

Need for Regulation and Data Exchange Frameworks:

• Learning from Global Models: Countries like Australia, the U.K., and Estonia have adopted data exchange frameworks for sectors such as housing, employment, and agriculture. India can draw insights from these models to formulate its blueprint for governing data exchanges.
• State and Central Initiatives: States like Telangana have initiated agriculture data exchanges, while the Ministry of Housing & Urban Affairs has established the India Urban Data Exchange. Coordination between state and central initiatives is essential for effective data governance.
• Blueprint for Governance: Formulating a comprehensive blueprint for governing data exchanges in India is crucial. This will supplement existing efforts by MeiTY and expert committees, providing actionable pathways for NPD governance and fostering a forward-thinking framework for data exchange regulation.