As India advances toward its ambitious $5 trillion economic goal, the role of non-personal data (NPD) has become increasingly crucial. In March 2024, the government announced plans to collect non-personal data for training AI models, marking a significant shift in data governance. Leading business lawyers suggest this move could reshape India's digital landscape while raising important considerations about data protection and utilisation.
According to business lawyer Vaneesa Agrawal, in her 2020 article "Regulation of Non-Personal Data," the framework for NPD governance requires careful consideration of multiple stakeholders. "The collection and utilization of non-personal data must balance innovation with privacy concerns, ensuring that data sharing mechanisms benefit the broader ecosystem while protecting individual rights," Vaneesa Agrawal, founder of Thinking Legal emphasises.
Understanding the Current Landscape
Business lawyers note that non-personal data encompasses three distinct categories: public, community, and private. As Vaneesa Agrawal explained in her comprehensive analysis, "Non-Personal data includes data that is not 'personal data' and data that is without any personally identifiable information." Business lawyers highlight how this classification is crucial for determining applicable regulations and usage rights.
Business lawyers point out that the Expert Committee on Non-Personal Data Governance Framework, led by Kris Gopalakrishnan, introduced several key concepts that remain relevant today. According to Vaneesa Agrawal's analysis, "The Report defines the roles of a Data Principal, being the corresponding entity to whom the data relates, and Data Custodian, being the entity that undertakes collection, storage, processing, use, etc. of data in a manner that is in the best interest of the data principal."
Industry-focused business lawyers emphasise that the framework also introduced the concept of Data Business as a new category, encompassing entities involved in the collection, processing, storage, and management of data. Business lawyers note that this categorisation would apply to existing businesses collecting data beyond certain thresholds, subjecting them to institutional oversight.
However, as Vaneesa Agrawal points out, "Despite these initiatives, significant gaps remain." Specialised business lawyers advise that the current regulatory framework, including the National Data Governance Framework Policy, lacks enforceability and operational clarity. This situation, business lawyers suggest, leaves NPD largely unregulated and hinders its potential benefits for AI development and public services.
The complexity is further amplified by what business lawyers identify as the "sensitivity factor" of non-personal data. As Vaneesa Agrawal notes, "Non-personal data can also be sensitive if it is related to national security or business information or anonymised data that could be used for re-identification." This consideration has become particularly relevant in the context of AI development and data-sharing mechanisms.
Regulatory Challenges and AI Concerns
Several business lawyers emphasise that the regulatory landscape for NPD will face significant challenges in 2024, particularly regarding AI applications. As Vaneesa Agrawal notes in her analysis, "The regulatory framework must address both the potential benefits of data sharing and the legitimate concerns about privacy and commercial interests."
According to experienced business lawyers, key challenges include:
Mixed Datasets: Business lawyers highlight the complexity of separating personal and non-personal data, especially when dealing with AI training data.
De-anonymization Risks: Leading business lawyers explain that advanced AI techniques could potentially compromise anonymised data.
Governance Gaps: Business lawyers note that the current framework lacks clear guidelines for AI model training using NPD.
Current State and Future Considerations
Vaneesa Agrawal's insights from her earlier analysis remain relevant as she points out, "The success of any NPD framework depends on creating clear guidelines for data sharing while protecting intellectual property rights." Business lawyers following recent developments note that while NPD holds promise as a 'public good', its unregulated status poses significant risks, particularly in the context of AI development.
Specialist business lawyers advise that key considerations include:
The need for comprehensive regulatory design for data exchanges
Clear protocols for AI model training using NPD
Balanced mechanisms for public-private partnerships
Looking Ahead: Impact and Opportunities
Business lawyers examining the current situation suggest that addressing these challenges requires a careful balance between innovation and protection. As Vaneesa Agrawal highlighted in her analysis, "A well-structured NPD framework can drive innovation and economic growth while ensuring appropriate protection of stakeholder interests."
Industry-focused business lawyers emphasise that organisations should prepare for:
Enhanced data protection requirements
Evolution of compliance standards
Emerging AI governance frameworks
Practical Implications for Businesses
Leading business lawyers suggest that organisations need to take proactive steps in anticipation of future regulatory developments. According to experienced business lawyers, this includes conducting thorough assessments of their data assets and developing robust data governance frameworks.
Business lawyers highlight several key areas requiring immediate attention:
Data Mapping and Classification
Business lawyers advise organisations to create comprehensive inventories of their data assets, clearly identifying and segregating personal and non-personal data where possible.
AI Model Development
Specialised business lawyers note that organisations developing AI models should establish clear protocols for data usage, particularly when dealing with mixed datasets.
Cross-Border Considerations
Business lawyers emphasise the importance of understanding international data governance frameworks, as many organisations operate across multiple jurisdictions with varying approaches to NPD regulation.
Stakeholder Engagement
Leading business lawyers suggest that organisations should actively participate in industry discussions and policy consultations to help shape the evolving regulatory landscape.
Conclusion
The current state of non-personal data governance presents both opportunities and significant challenges for India's digital transformation journey. As Vaneesa Agrawal observed in her 2020 explanation, "The future of data governance lies in creating balanced frameworks that promote innovation while protecting fundamental rights." Business lawyers continue to play a crucial role in helping organisations navigate these evolving requirements while addressing emerging concerns about AI and data protection.
The path forward requires careful consideration of both opportunities and challenges, with business lawyers suggesting that success will depend on effective regulation and stakeholder collaboration. As India grapples with these complex issues, the insights and guidance of experienced legal professionals will remain invaluable in shaping a robust and effective data governance framework that can address the unique challenges posed by AI and digital transformation.
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