India's tech revolution: As Modi begins third term, new data laws and AI leadership can take centre stage

There has been speculation about India’s ability to produce high-quality hardware and software, and changes in key legislative decisions can cement the country’s position in global tech. In the road ahead, the IT ministry, with Ashwini Vaishnaw at the helm, will have to carefully plan and implement key bills to realise the full potential of the reforms.

Privacy Concerns

The Digital Personal Data Protection (DPDP) Act and the umbrella regulation—the proposed Digital India Bill—have been works in progress. As Indians gradually shift to the online world, the implementation of robust data protection laws is the need of the hour. The bill aims to safeguard citizens’ privacy while promoting the responsible use of data; it will tackle hate speech, misinformation, unfair trade practices, security and safety on the internet.

Jiten Jain, cybersecurity expert and Director at digital investigation services firm Voyager InfoSec, highlights the significant strides made in digital public services. “The government has aimed to put every single public service delivery online to eliminate bureaucracy. This shift has led to greater transparency,” Jain says. But he emphasises the need for enhanced measures to protect citizens from digital fraud and cybercrimes, especially in smaller towns.

There is also a need for a national security directive to prevent unapproved Chinese hardware in critical sectors like telecom and power and Jain feels there is a shortage of skilled labour in the cybersecurity sector.

The DPDP Act has, however, drawn criticism from data activists that it allows the government to use a citizen’s data indiscriminately.

'DIY'-ing It

Initiatives like Make in India and Atmanirbhar Bharat will continue to play a pivotal role in strengthening domestic tech manufacturing, particularly in critical sectors like semiconductors and electronics, especially if the government aims to reduce the dependency on imports and foster home-grown innovation.

Prabhu Ram, Head of Industry Intelligence Group at marketing research and consulting firm CyberMedia Research emphasises the importance of attracting upstream players to bolster the domestic electronics manufacturing value chain. “This will significantly strengthen electronics manufacturing, thereby enhancing the country’s competitiveness,” he says.

The government’s support in the past two terms has helped establish manufacturing capabilities and it needs to continue investing to reduce imports. Highlighting the requirements of the nascent drone sector, Ankit Mehta, CEO of drone maker ideaForge says, “Continued support for R&D with upfront investment and continued incentives for production and collaborations are needed.”

The emerging semiconductors space requires robust infrastructure and government support. Eswara Rao Nandam, CEO of chips manufacturer Polymatech Electronics, highlights the importance of a reliable gas supply infrastructure for the semiconductor industry. “Access to these resources is essential for a thriving semiconductor industry,” he says.

AI Foot Forward

To establish itself as a leader in emerging technologies, India needs a clear AI strategy, which should balance innovation with regulation, ensure ethical and secure AI development, say experts. Jaspreet Bindra, AI expert and founder of consulting firm Tech Whisperer Ltd, says India could adopt a unique approach, blending its success in digital public infrastructure with AI advancements. “We need a clear strategy that balances pro-innovation with regulation. Creating an AI agenda could bridge the digital divide,” Bindra proposes. He also emphasises the need for an AI ethics or AI regulation-oriented approach. “We need laws around issues like deepfakes and privacy,” Bindra says. He believes India should create its own laws. “The problems in India are unique, and so we should cater to [solving] those,” he adds.

Riding the EV Wave

Sustainability within the tech industry will be a priority, with initiatives aimed at promoting green tech and sustainable practices. This includes the adoption of energy-efficient solutions and reducing the carbon footprint of tech operations. The EV sector is poised for substantial growth, driven by government policies like the PLI scheme. However, further refinements are needed to keep up with technological advancements and market demands.

Maxson Lewis, CEO of EV solutions firm Magenta Mobility, underscores the importance of government policies in promoting green tech. The EV segment remains one of the fastest-growing in the green tech sector and the government can provide greater stability to electric mobility brands by releasing a longer term plan. “Policies on battery swapping need revisiting due to rapid technological advancements. Additionally, a five-year policy road map would provide greater clarity and stability for the industry,” says Lewis.

Niraj Rajmohan, CTO and Co-founder of Bengaluru-based EV start-up Ultraviolette says, “Recent discussions surrounding the implementation of FAME III present a notable opportunity to enhance EV adoption. In light of this, any extension of the FAME subsidy and removing caps on the ex-factory prices of EVs will be pivotal.”

To keep pace with tech advancements, enhancing digital literacy and technical skills among the workforce is crucial. This includes expanding tech-related courses and training programs in educational institutions. Jain flags the gap in this space. “The government needs to create a robust cybersecurity infrastructure to protect the most vulnerable individuals, ensuring they do not lose trust in the digital payment ecosystem,” he advises.

Reaching the Stars

The government’s supportive policies in the spacetech sector will be pivotal to fostering innovation, investment, and global collaboration.

Awais Ahmed, CEO of aerospace firm Pixxel, highlights the potential of spacetech start-ups in India. “The amendments to the FDI policy and initiatives like Mission DefSpace will serve as catalysts for innovation and growth in the space sector,” he says. Ahmed emphasises on the importance of new tech such as reusable launch vehicles and the use of AI in machine learning algorithms.

Cutting down on red tape, speeding up approval processes, protecting intellectual property, and promoting fair competition will be of importance to private companies that want to invest in space tech.

As the world wakes up to newer tech-related advancements, the new government will need to focus on setting new benchmarks for a tech-empowered India. A comprehensive approach that includes updates in data protection laws, continued support for domestic manufacturing, leadership in emerging technologies, and a commitment to sustainability can position India as a global leader, as tech’s the way forward.

@DannyDcruze1