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In an in-depth conversation at News18 Rising Bharat Summit, Union Minister Ashwini Vaishnaw laid out the government’s ambitious trajectory for India’s technological and industrial transformation, spanning artificial intelligence, semiconductor manufacturing, digital regulations, and the modernization of Indian Railways.

Vaishnaw affirmed that India’s foundational artificial intelligence (AI) model is firmly on track. “Absolutely, we are on track,” he said. “We have already got 14,000 GPUs empaneled and another round getting soon. Combine these with our talent, and it gives a very good edge to developers and startups.”

The minister highlighted the global recognition India is receiving in the AI space, referencing a tweet by OpenAI CEO Sam Altman, noting the country’s enthusiastic adoption of AI. “It’s phenomenal,” Vaishnaw added.

On the semiconductor front, Vaishnaw confirmed that India’s first Made-in-India chip is expected to roll out by September or October. “All the five units’ construction is going on very well... validation of the machinery is happening,” he assured.

India's tech space 

Responding to concerns about India being late to the AI race compared to countries like China, Vaishnaw disagreed. “This is just the first chapter of the AI book... We are very much in the race,” he said. He emphasized the need for India to build its own large language models (LLMs) for two critical reasons—technological sovereignty and the elimination of cultural bias. “We must have the LLM within our ecosystem,” he asserted.

Discussing the Digital Personal Data Protection (DPDP) Act, the minister emphasized a principles-based, consultative approach. “We had more than 35,000 inputs from various stakeholders,” Vaishnaw shared, adding that the rule-making process is now in its final stages.

He also touched on the growing responsibility of digital influencers and content creators in the wake of controversial online content. “We must understand that we are living in a society,” he said. “Whether we are content creators or consumers... we should understand our responsibility.”

On Starlink’s entry into India and the legal dispute between Elon Musk’s X (formerly Twitter) and the Indian government, Vaishnaw was firm: “Ultimately, every company... has to work within the framework of the Constitution and laws passed by the Parliament.”

India’s startup landscape, the minister noted, has exploded from a few hundred to over 1.5 lakh in the last decade. While acknowledging criticisms about the lack of deep tech, he defended the ecosystem's diversity. “There are more than 100 deep tech startups in IIT Madras alone,” he said. “There is a space for all.”

Addressing the Production-Linked Incentive (PLI) scheme and critiques by economists like Raghuram Rajan, Vaishnaw stood by the policy. “Every country... started the same process,” he explained, citing Japan, China, South Korea, and Vietnam. He also stressed the scheme’s social impact: “Electronics manufacturing is giving meaningful employment to 25 lakh people... especially young women from rural areas.”

Amid global supply chain shifts, Vaishnaw highlighted India’s growing stature. “In 10 years, electronics manufacturing has grown five times... exports have grown six times,” he noted. India is now attracting major global players, including Chinese smartphone companies, which are encouraged to form joint ventures with Indian firms.

Modernizing Indian Railways

Turning to Indian Railways, the minister detailed a sweeping modernization plan. The upcoming inauguration of the Katra-Srinagar Vande Bharat by Prime Minister Modi is “a symbol of national unity and engineering tenacity.” Vaishnaw noted that 136 Vande Bharat services are already operational and the manufacturing continues apace.

He also underscored railway safety improvements and the rollout of the indigenous Kavach collision avoidance system. “Incidents have reduced by almost 80%,” he said, adding that Kavach deployment across 15,000 km of track is underway.

Looking to the future, Vaishnaw painted a vision of “Viksit Bharat” in 2047. “Safety will improve further... capacity will increase significantly... and new technology trains like Vande Bharat, Namo Bharat, Amrit Bharat, and the bullet train will redefine travel,” he stated. Additionally, a massive station redevelopment program covering 1,200 stations is in progress, with 100 set to be inaugurated soon.

When asked about his long working hours and the debate around a 90-hour workweek, Vaishnaw simply remarked, “Our Prime Minister has set a very good example. When we have to take our country to a totally new level, there is no option.”

“Not late, just starting strong”: IT Minister Ashwini Vaishnaw on India’s AI leap

To support the growth of artificial intelligence (AI) in India, the Ministry of Electronics and Information Technology (MeitY) will launch AI Kosha, a non-personal data platform, on 6th March. The India Datasets Platform, a key pillar of the ₹10,738-crore IndiaAI Mission, aims to make high-quality, non-personal datasets more accessible to entrepreneurs and startups. These datasets are crucial for developing AI technologies, including foundational models. The platform has been in development for several months and has already undergone internal testing within various government agencies to ensure its efficiency.

Alongside AI Kosha, MeitY will also introduce the IndiaAI Compute Portal, which will allow startups and researchers to access high-performance graphics processing units (GPUs) acquired under the IndiaAI Mission. Of the 18,693 GPUs allocated, 12,896 are Nvidia H100 GPUs, while 1,480 are Nvidia H200 GPUs. The remaining units include high-performance AI chips from AMD, Intel, and AWS. To ensure seamless integration, the government is working closely with GPU providers to establish API linkages, which will facilitate connectivity between the service providers and the portal.

The launch of the GPU access portal and the IndiaAI Datasets Platform has been highly anticipated by the industry, as these initiatives are expected to significantly accelerate AI research and development in India. Alongside these announcements, the government will also unveil the top 30 applications from the IndiaAI Innovation Challenge, introduce an AI Competency Framework for public sector officials, and launch the IndiaAI Startups Acceleration Programme in collaboration with Station F. Additionally, MeitY will present the IGoT-AI recommendation engine for the iGOT platform, aimed at enhancing AI-driven decision-making in governance.

With these efforts, the IndiaAI Mission aims to strengthen India’s AI ecosystem, making AI development more accessible and efficient for startups and researchers. By improving access to quality datasets and advanced computing power, these initiatives are set to play a vital role in positioning India as a global leader in artificial intelligence.

<a href="https://www.storyboard18.com/how-it-works/only-meity-can-regulate-vpn-app-trai-informs-dot-58122.htm">Read More: Only MeitY can regulate VPN app: TRAI informs DoT</a>

MeitY to launch AI dataset platform and GPU access portal to boost AI development

The Ministry of Electronics and Information Technology (MeitY) will meet with the Parliamentary Standing Committee on Communications and Information Technology on March 5 to present evidence on the subject of the “Impact of Artificial Intelligence and Related Issues.” The meeting was originally scheduled for March 7.

Additionally, MeitY will discuss the potential adoption of two draft reports on new AI laws. The Ministry is drafting a new AI law that would require social media platforms such as Facebook, Instagram, YouTube, and X to include watermarks and labels on AI-generated content.

Furthermore, the Indian Computer Emergency Response Team (CERT-In), a division of MeitY, is currently testing anti-deepfake technology to combat the malicious use of AI in scams targeting unsuspecting individuals.

The Parliamentary Standing Committee will be chaired by Member of Parliament Nishikant Dubey. Other participants will include representatives from the Ministry of Home Affairs, the Ministry of Defense, the Department of Financial Services, the Department of Revenue, the Ministry of Commerce and Industry, the Ministry of New and Renewable Energy, the Ministry of Power, and the Ministry of Health & Family Welfare.

Representatives from MeitY had previously briefed the Parliamentary Standing Committee on January 9 to discuss the impact of artificial intelligence-related issues. The topic of discussion was the “Impact of the Emergence of Artificial Intelligence and Related Issues.” The committee examined the regulation and monitoring of digital and cybercrimes.

During Storyboard18 DNPA conclave, MeitY Secretary S Krishnan discussed the need of effective monitoring of AI regulation and how India's stance on AI balances innovation with safeguards against potential harms.

According to him, MeitY too is closely studying regulations in other jurisdictions, including the European Union, to determine appropriate measures. India already has legal frameworks under the IT Act and the Bharatiya Nyaya Sanhita (BNS) that address misrepresentation and misinformation.

Krishnan said, "The advisory committee issued guidelines on March 15, 2024, addressing some concerns. If needed, the government may introduce stronger legislation, but this will be an extensive process involving stakeholder discussions. Our emphasis is on enabling AI-driven innovation while ensuring accountability through clear liability provisions."

In September of last year, MeitY issued an advisory to social media platforms instructing them to take prompt action in removing fake content. The Ministry also required platforms to seek government approval before releasing any untested or unreliable AI models for Indian users.

In a written response to a question in the Lok Sabha on July 31, 2024, Jitin Prasada, Minister of State for Electronics and Information Technology, emphasized that the Ministry has been engaging with the public and stakeholders to gather input on necessary changes to existing legislation and the potential need for new laws related to deepfakes.

In November 2023 and again in March 2024, the Ministry issued advisories to social media companies, urging them to comply with the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. These advisories aimed to ensure that social media firms took stronger action against AI-generated deepfake videos.

MeitY had also issued an advisory requiring AI models under development to be labelled and prohibiting the dissemination of unlawful content.

MeitY to present AI impact report to Parliamentary Committee on March 5

On Monday, Real Money Gaming operator A23 parent firm Head Digital Works, Games 24x7 and Junglee Games filed a writ petition in Madras High Court seeking injunction on the newly enforced Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025. Storyboard18 had earlier reported that the RMG industry was preparing to take legal action against the Tamil Nadu government over its “blank hour” regulations, which would prohibit gaming between midnight and 5 AM. 

As per the petition, the RMG operators have prayed to declare provisions Section 5 read with Sections 14 of Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022 and Tamil Nadu Online Gaming Authority (Real Money Games) Regulation 2025 as ultra vires discriminatory arbitrary void illegal and unconstitutional in so far as its application to online real money online games of skill i.e. online games of skills when played with money and pass. The matter is yet to be listed. 

The respondents include State of Tamil Nadu, Director General of police of Tamil Nadu, TNOGA and MeitY. Interestingly, all the RMG taking the legal action are members of E-Gaming Federation. All India Gaming Federation members will likely not file a case against the government, sources say. 

A source close to the development said, "The RMG companies have filed the writ petition. The matter is yet to be listed. The date of hearing will be announced soon." 

Last week, on Friday, AIGF met with Tamil Nadu Online Gaming Authority (TNOGA) officials, only to receive instructions on implementation. A source close to the development stated that the E-Gaming Federation (EGF) was reprimanded before being provided clarity on the newly enforced Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025.

While on Tuesday, EGF representatives met with TNOGA officials, including Md. Nasimuddin and Dr. M.C. Sarangan, to discuss concerns related to Tamil Nadu's RMG regulations.

Non-compliance with the regulations will lead to legal action against RMG operators under Section 16(3) of the Tamil Nadu Prohibition of Online Gambling & Regulation of Online Games Act, 2022.

It’s worth noting that in November 2023, the Madras High Court struck down the law banning online money games such as Rummy and Poker, declaring it "unconstitutional."

A bench comprising Chief Justice SV Gangapurwala and Justice PD Audikesavalu ruled that while the state government has the authority to regulate online gaming by imposing time limits or age restrictions on both games of skill and chance, it cannot ban games of skill, such as Rummy and Poker. The court clarified that the Act could only be used to prohibit games of chance, not games based on skill.


EXCLUSIVE: A23, Games 24x7, Junglee Games take Tamil Nadu govt to court

The New Indian Consumer Initiative (NICI) and a coalition of leading consumer interest organizations have submitted a joint representation to the Ministry of Consumer Affairs, Ministry of Information & Broadcasting, Ministry of Finance, Ministry of Electronics & Information Technology, the Securities and Exchange Board of India, the Advertising Standards Council of India, and the Parliamentary Standing Committee on Consumer Affairs, urging a ban on Opinion Trading platforms in India.

According to the representation, these platforms operate as pure betting services that mislead consumers through deceptive advertising, enticing them to engage in illegal and unauthorized activities while exposing them to financial and psychological risks.

The signatories of the representation, including Ramjibai Mavani, Former Member of Parliament and Founder of Rajkot Jilla Grahak Suraksha Mandal, and Prof. Dr. Duraisingam, Chairman of Consumer Research, Education, Action, Training & Empowerment (CREATE), highlight the significant consumer harm posed by these betting platforms, particularly due to misleading advertisements that portray Opinion Trading Platforms as investment opportunities.

Abhishek Kumar, Convenor of NICI, stated, “Through this joint representation, we urge the government to prohibit opinion trading in India and take decisive action, including issuing interim measures to prevent consumer harm, banning digital and social media advertisements, and prohibiting app stores, cloud service providers, and payment gateways from supporting these platforms. We also urge the Central Consumer Protection Authorities to investigate misleading claims and call on law enforcement agencies to freeze assets linked to these platforms."

According to NICI, Opinion trading platforms allow users to wager money on real-world event outcomes, mimicking financial markets while fundamentally operating as gambling and betting services. With an estimated trading volume exceeding ₹50,000 crore annually and more than five crore Indian users, these platforms misrepresent themselves as skill-based games or investment platforms. However, the binary nature of these wagers makes them predominantly chance-based, raising concerns about their legality under the Bharatiya Nyaya Sanhita, 2023, which prohibits unauthorized betting and gambling.

The representation further raised a major concern on the misleading advertising used by these platforms, which often implies regulatory oversight and employs financial terms like “Auto Profits” and “Stop Loss” to create the illusion of structured investments. Many advertisements, including influencer promotions, falsely portray earnings as risk-free, potentially violating ASCI and CCPA guidelines on deceptive promotions. Beyond financial losses, these platforms can harm users' well-being, leading to stress, compulsive behavior, and the normalization of gambling culture—especially among economically vulnerable groups.

With several countries now enforcing strict regulations or outright bans on opinion trading, the coalition urges the ministries to take swift action to protect consumer rights, including the right to be informed, heard, educated, and safeguarded.

Consumer advocacy groups demand ban on opinion trading platforms in India

The Ministry of Electronics and Information Technology (MeitY) has launched an updated version of its website, aligning it with the new Digital Brand Identity Manual (DBIM)—a set of guidelines designed to create a uniform and user-friendly digital presence across government platforms.

The websites of five other ministries, including the Ministry of Commerce and Industry, are also set to go live under these new standards, ensuring a consistent and seamless experience for users, MeitY announced on Tuesday.

Speaking at the DBIM launch event, Jitin Prasada, Minister of State for Electronics and IT, highlighted the challenge of designing digital platforms that cater to India’s vast and diverse population.

"It is always a challenge to serve such a large and varied audience in a smooth, uniform, and impactful way—especially considering different levels of digital literacy, socioeconomic backgrounds, and age groups," he said.

MeitY Secretary S. Krishnan stressed the need for government websites to match the usability and efficiency of private-sector platforms.

“The government recognises the importance of the National Informatics Centre (NIC) as the original technology provider. It is essential that we carry forward its legacy and trust while ensuring that it evolves to meet modern demands,” he stated.

He also urged NIC officials to stay ahead of competition, both within and outside the government, by continually improving their service delivery.

With a rise in fraudulent websites impersonating government portals, standardisation is more critical than ever, said Alka Misra, Deputy Director General of NIC.

She emphasised the importance of keeping information up to date and ensuring that outdated content is archived. The new digital identity guidelines will apply not only to websites but also to government applications and other digital interfaces.

Under the new framework, chief information officers (CIOs) of various government departments will be responsible for ensuring compliance with DBIM. They will also be required to submit key performance indicators to a centralised dashboard, allowing for better monitoring and continuous improvement.

<a href="https://www.storyboard18.com/how-it-works/meity-secretary-s-krishnan-to-elucidate-on-ai-and-accountability-at-storyboard18-dnpa-conclave-2025-56842.htm">Read More: MeitY Secretary S Krishnan to elucidate on AI and accountability at Storyboard18 DNPA Conclave 2025</a>

MeitY revamps government websites for a standardised digital identity

Recently, the Minister of State for Electronics and Information Technology responded to a query from Rajya Sabha lawmaker S. Niranjan Reddy regarding the web scraping of publicly available user data by social media companies for training Artificial Intelligence (AI) models.

The Andhra Pradesh MP asked the Ministry of Electronics and Information Technology (MeitY) about the measures taken by the government to regulate and prevent the misuse of web scraping by social media companies for AI training purposes.

The query focused on ensuring that social media companies provide full transparency, obtain informed user consent before scraping data, and implement accountability mechanisms to prevent the unethical use of scraped user data.

In response, Jitin Prasada, Minister of State for Electronics and Information Technology, stated, "Web scraping of any publicly available user data by any intermediary, including social media companies, for training AI models or any other purpose is regulated under the Information Technology Act, 2000 (IT Act) and its rules."

He further explained, "Section 43 of the IT Act imposes penalties for unauthorized access to computer systems and provides compensation for damages to affected parties. Additionally, the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, require intermediaries, including social media platforms, to prevent users from hosting, displaying, uploading, or sharing content that violates any law. These companies must also implement measures to ensure data protection and prevent unauthorized data access."

Expanding on the issue, Prasada added, "The Digital Personal Data Protection Act, 2023 (DPDP Act), mandates that organizations involved in digital personal data processing, including web scraping of publicly available user data, implement robust compliance measures. This includes obtaining consent for specified purposes before processing digital personal data and respecting individual rights."

Furthermore, the DPDP Act establishes a strong accountability framework to ensure the lawful processing of digital personal data. The Data Protection Board of India serves as an independent adjudicatory body empowered to investigate complaints, conduct inquiries, and impose penalties of up to ₹250 crore for non-compliance with the Act's provisions, Prasada stated.

MeitY reiterates its stance on web scrapping of personal data

Who will win the Delhi assembly elections? Will India secure the Border-Gavaskar Trophy? Will Akshay Kumar’s film Sky Force cross Rs100 crore at the box office? These are some of the questions posed to users on various real-money gaming apps and websites that allow users to wager on the outcomes of future events.

The unchecked rise of such games on real-money gaming platforms has drawn the attention of the Ministry of Electronics and Information Technology (MeitY). Globally, in countries like the United States, the United Kingdom, and Australia, opinion trading apps and websites are classified as wagering platforms and are regulated. In India, however, there is still a lack of specific legislation to govern these activities.

A senior official from MeitY, speaking on condition of anonymity, told Storyboard18: "We are well aware of certain apps and websites engaging in opinion trading. They exploit loopholes in the system to expand their business. We will soon issue an advisory on this matter."

A representative from the real-money gaming (RMG) industry stated: "Opinion trading is essentially betting. Wagering on future outcomes is akin to making money through predictions. Unfortunately, a handful of people involved in these activities tarnish the reputation of the entire RMG industry, casting us in a poor light with regulatory bodies like MeitY."

Interestingly, opinion-based games are thriving on these platforms, often at the expense of skill-based games like poker and rummy. "Many organizations affected by the Goods and Services Tax (GST) regime have started offering opinion-based games on their platforms to generate revenue. However, in the long run, this trend could hinder the growth of these platforms if left unchecked," said a senior counsel from a prominent law firm.

Legal precedent offers some clarity on the issue. In Manoranjithan Manamyil Mandram v. State of Tamil Nadu (2005), the Madras High Court ruled that determining whether a game is one of skill or chance depends on the specific circumstances of each case. The Court further held that even if a game involves elements of chance, it will not be classified as gambling if skill is the dominant factor in determining the outcome.

Similarly, in R.M.D. Chamarbaugwala v. Union of India (1957), the Supreme Court of India upheld this principle, ruling that games primarily based on skill are considered "mere skill" games and are protected as legitimate trade and business activities under the Indian Constitution. The Court also noted that games where chance outweighs skill are classified as gambling and are subject to regulatory prohibitions. These rulings form the foundation of the legal framework governing skill-based games in India and have been applied to both offline and online gaming.

Another industry stakeholder commented: "Advocacy bodies and federations have distanced themselves from opinion-based games and apps. They are aware that such games are more chance-based than skill-based. We are hoping the government provides a clear regulatory framework for these types of platforms."

The absence of clear regulations for opinion-based gaming leaves a grey area that both players and platforms continue to exploit. Opinion based games appeal to a wide audience and generate substantial revenue, their similarity to wagering and gambling creates challenges for the broader RMG industry. It is imperative for the government, especially MeitY, to establish comprehensive guidelines to address these challenges.

Opinion trading apps, games now under MeitY's scanner

The Ministry of Electronics and Technology (MeitY) recently released draft rules for the Digital Personal Data Protection Act (DPDPA) to solicit public feedback. Stakeholders have expressed concerns about the limited consultation period and are requesting an extension. Feedback is currently being accepted until February 18. Experts state that though the implementation timeline is of two years, be it MSME's or major companies, they are now a data fiduciary. 

The draft rules mandate the localization of personal data within India, except in cases where exemptions are granted by the central government. Additionally, the rules require parents and guardians to verify their identity before individuals under 18 can register on online platforms or social media.

Minister of Electronics and IT Ashwini Vaishnaw has expressed his intent to avoid overly complex regulations akin to Europe’s General Data Protection Regulation (GDPR). Instead, India seeks a simpler framework that encourages innovation while upholding user privacy.

S. Krishnan, Secretary of the IT Ministry, who assumed office at MeitY shortly after the passage of the DPDP Act, highlighted the extensive consultations involved in drafting the rules. He emphasized the effort to balance data privacy with business needs.

Vinay Butani, Partner at Economic Laws Practice, remarked, "The limited public consultation period is a concern. The short timeframe for feedback could hinder comprehensive stakeholder engagement and the inclusion of diverse perspectives in the final rules."

Butani also noted ambiguities in the DPDPA rules, particularly regarding breach notification procedures and specifics of security safeguards. These gaps, he said, could pose challenges to implementation and lead to inconsistencies in compliance, including difficulties with verifiable consent mechanisms.

The DPDP Act, passed by Parliament on August 9, 2023, followed the Supreme Court's recognition of privacy as a fundamental right six years earlier. However, the Act has yet to come into effect as its rules and regulations are still being finalized.

Akshayy Nanda, Partner at Saraf and Partners, urged organizations to begin compliance efforts without delay. "Compliance is a complex, time-consuming process that often requires a thorough overhaul of business practices," Nanda said. "Organizations that delay risk falling behind, facing legal penalties, and damaging their reputations. The time to act is now."

In addition to concerns about the consultation process, the Internet Freedom Foundation (IFF) raised preliminary issues regarding five key areas in the draft rules: vagueness, excessive reliance on discretionary powers, weak oversight and accountability mechanisms, broad exemptions for state processing, and a move toward universal and mandatory registrations.

The IFF highlighted problems with the requirement for Verifiable Parental Consent (VPC) for children’s data under Rule 10. It argued that without internet-wide age-gating, only users identified as children would need VPC, potentially paving the way for mandatory age verification for all users via government-issued credentials. This could lead to mass surveillance, violate data minimization principles, and result in over-collection and prolonged storage of personal data.

Siddharth Chandrashekhar, advocate & counsel, Bombay High Court pointed out, "Granting government agencies unfettered access to personal data in the name of national security is like giving a wolf the keys to the sheep pen. While national security is paramount, the absence of robust safeguards invites misuse and could erode public trust. When the gatekeepers themselves are unchecked, privacy becomes an illusion, and liberty is the silent casualty. Those wary of digital snooping, are will within their rights to question if this provision sacrifices privacy at the altar of surveillance."

Jaspreet Singh, Partner at Grant Thornton Bharat, noted, "The draft rules leave certain areas open to interpretation and require further refinement. For example, the designation of organizations as Significant Data Fiduciaries (SDF) by an officer appointed by the MeitY Secretary raises important questions about compliance and operations."

The limited consultation period, coupled with ambiguities in critical provisions, has raised concerns among stakeholders. Experts emphasize the need for detailed guidelines and a more inclusive approach to ensure effective implementation.

DPDP Rules: Stakeholders seek extension of consultation period

The Ministry of Electronics and Technology (MeitY) on Friday released draft rules of Data Digital Personal Data Protection Act (DPDPA) for public consultation. The policy think tanks and civil society members are raising concerns over multiple aspects of the draft rules. The government will seek feedback from stakeholders till February 18. 

In an overview of the draft rules of DPDPA, personal data has been mandated to be localized in India, barring in cases and countries as exempted by the Centre. Further, the rules state that the parents and guardians will have to verify their identity before an individual under 18 years of age can sign up for online platform or on social media. 

Experts suggest that the parental consent rules are likely to add a heavy compliance burden on all parties involved. E-commerce, social media and gaming platforms will all come under the category of data fiduciaries.

The DPDP Act was passed by Parliament on August 9, 2023 — about six years after the Supreme Court upheld privacy as a fundamental right. Despite being announced last year, the Act has not yet taken effect since its rules and regulations are still have not been released or finalised.

Dhruv Garg, Partner - Indian Governance & Policy Project said, “The public consultation on draft DPDP rules is likely to see expansive and critical discussion on multiple aspects. Provisions relating to data localisation for certain specified personal data when being processed by significant data fiduciary will definitely take centre stage. Additionally, restrictions and requirements imposed on sharing of personal data with foreign state and their agencies will see concerns from data fiduciaries operating across jurisdictions.” 

The draft rules of DPDPA states that, "A Data Fiduciary shall adopt appropriate technical and organisational measures to ensure that verifiable consent of the parent is obtained before the processing of any personal data of a child and shall observe due diligence, for checking that the individual identifying herself as the parent is an adult who is identifiable if required in connection with compliance with any law for the time being in force in India."

This is in reference to reliable details of identity and age available with the Data Fiduciary. It further refers to the details voluntarily being provided identity and age or a virtual token mapped which is issued by an entity entrusted by law or the Central Government or a State Government. 

Garg said, “The language and intent of provisions in relation to verifiable parental consent and proof of adulthood of parents will need greater clarity in due course. Civil society may stress on the need to create balance between privacy and power of government to access data on ground of national security/state function.”

Multiple think tank policy consultants have raised concerns over the challenges posed by emerging technologies like Artificial Intelligence. Civil Society members have raised severe concerns over government's intent to demand and collect data of Indian citizens citing national security concerns. 

Aparajita Bharti, Founding Partner, The Quantum Hub Consulting said, “DPDP Rules have been much awaited and a draft gives broad direction to the industry to start preparing for compliance. However, from the rules it is still not clear what the implementation timelines are likely to be.” 

Bharti further said, “On Children’s data, while the government has left room for innovation on age estimation, there are more specific obligations for verifying parents identity. This may lead to a high compliance burden on platforms. There are also some positives around allowing tracking of children's data and behavioural monitoring for their safety and ensuring that they do not encounter inappropriate content. One key concern in the rules is potential room for bringing data localisation requirements for significant data fiduciaries as they mention that a committee may do so in the future. The draft rules also do not explicitly address exemptions, processing grounds, or other frameworks specifically tailored for AI model training purposes.” 

Experts argue that the central government retains the authority to restrict the cross-border transfer of specific personal data by significant data fiduciaries while Rule 15 does not explain the exemptions under Section 17(2)(B) related to research, archiving, or statistical purposes, leaving ambiguity around whether AI models trained on personal data for research are covered by these exemptions. 

Kazim Rizvi, Founding Director, The Dialogue – a thinktank – said, “The DPDP Rules provide essential guidance for implementing the legislation. However, advancing the framework requires multi-stakeholder discussions to offer deeper insights into its application, fostering innovation while safeguarding the rights of data principals. Key areas that demand further attention include verifiable consent mechanisms, cross-border data transfers, and breach notification processes."

<a href="https://www.storyboard18.com/digital/dpdp-act-meity-releases-draft-data-protection-rules-for-public-consultation-52286.htm" rel="noopener" target="_blank">DPDP Act: MeitY releases draft data protection rules for public consultation</a>

The DPDP Act has a provision to impose a penalty of up to ₹250 crore on data fiduciaries which are bodies responsible for determining the purpose and means of processing of personal data.

The DPDPA rules, which have been delayed for several months, will reinforce the existing data privacy law, while amendment to the IT rules will address crucial issues like artificial intelligence-driven misinformation and deepfakes until a comprehensive Digital India Act is formulated.

MEITY