6 min readJul 20, 2022 04:30 PM IST
First published on: Jul 20, 2022 at 04:10 AM IST
There are those who say that India’s digital economy has been operating in a regulatory vacuum. Perhaps a more appropriate formulation would be of a regulatory roller coaster. In 2022 itself, the Ministry of Electronics and Information Technology (MeitY) has announced the draft amendment to the IT Rules 2021 (June 2022), the draft India Data Accessibility and Use Policy (February 2022), National Data Governance Framework Policy (May 2022) and the new cyber security directions (April 2022). Besides these, the most awaited and critical e-commerce policy and the Data Protection Bill, both of which have been in the making for at least a few years now, are likely to be announced soon. This hyperactivity signals the accelerated growth of the digital ecosystem which needs regulatory nurturing. With due credit to the policymakers, all these proposals have been put out for consultation. In fact, the government has recently invited stakeholders to an open house discussion on the proposed changes to the IT Rules. This piece, however, is about those missing from these discussions.
There has been an enormous backlash against the growing power and influence of internet giants They do bring benefits to consumers, businesses and governments, but then they also enjoy dominant positions, engender misinformation and at the extreme, undermine democratic processes. Governments have been pushed to respond to myriad aspects of the digital economy — from financial sector regulation to anti-trust to data privacy. With so much at stake, Big Tech platforms have upped their advocacy by hiring qualified professionals and funding empirical research, not only in India but also across the world. A sceptic would view this as another way to influence the government. The balance is somewhere in the middle. But I am digressing. The point is Google, Amazon, Facebook, Twitter and the likes are all actively engaged in policy discussions, either directly or through third parties to put forth a point of view. Similarly, start-ups, think tanks, civil society organisations and academics invested in the issues of the digital economy either as users or as observers contribute to the policy discourse. Then who is missing?
Indian origin multinational corporations — the Tatas, Reliance, Aditya Birla Group, Godrej, ITC, Bajaj, and Hero — have collectively contributed to the country’s development. They cut across infrastructure, appliances and consumer electronics, automobiles, food processing, fashion, pharmaceuticals and energy. While these may not be quintessential digital companies, except for Reliance Jio, many are working towards adopting digital technologies for manufacturing, distribution, and client service. While it may be difficult to predict when the Indian industry will become digital-first, it is near certain that it will do so. Many companies now have online distribution channels that retail through intermediary platforms or their own websites. The Tatas have taken the plunge into e-commerce, first with Tata Cliq and recently with Neu. Others will follow. If so, one wonders why they are distant from conversations on these landmark policies that will determine the future of Indian commerce. Reports have quoted the group as acknowledging data governance as one of their biggest challenges. The issue is also at the centre of the current policy debate. Tata is not alone in dealing with the challenges of data integration across group companies. But most of them have been mute.
Government relations and outreach functions have always been important to big businesses. Indian juggernauts that pushed back on the opening up of the economy after the new order was implemented in 1991, came to be popularly known as the Bombay Club. The government did heed their plea, and the opportunities for foreign businesses remained diluted to allow Indian businesses to compete in the domestic market. Though a separate debate, some fear that the advocacy of inward-looking protectionist policies in recent times, rekindles such opposition — a Bombay Club 2.0 version. At what point and in what manner MNCs interact with the government will of course vary. Using a sector-specific example, all telecom companies in India committedly participate in TRAI’s open houses, industry deliberations and written submissions so that they can nudge policymakers toward industry-friendly decision-making that sits well with overall growth objectives. On general concerns such as infrastructure and the ease of doing business, intervention from the industry is much more indirect and often an ex-post phenomenon, that is, after the policy has been announced. To be fair, this is also because the government does not always consult businesses before announcing a new policy or regulation.
The case of the digital economy is different. The practice of multi-stakeholderism in policy formulation is present in letter, if not always in spirit. There are multiple opportunities and avenues for participating in dialogue, even if the final policy document is the same as the first draft. The policy teams of Big Tech make the most use of these channels to present their point of view and hope for reconciliation on issues, with the final policy document attempting to strike a balance between business viability and government objectives. Over the last few years of active debate on critical digital policies including those on data governance, privacy, anti-trust, and intermediary liability, there has been an overwhelming presence of the Big Tech Indian start-ups competing in this space, as well as their affiliated associations. Indian MNCs, for reasons unclear, has been mostly absent. What this has resulted in is a disproportionate policy focus on keeping Big Tech in check as against creating an enabling, secure and trusted digital ecosystem in India. As many issues highlighted by Big Tech are likely to be pain points for Indian businesses as well, participation of Indian MNCs could break the “us versus them” problem plaguing policy making in India today.
The writer is Senior Fellow, ICRIER. Views are personal
Mansi Kedia writes: Indian origin multinational corporations — the Tatas, Reliance, Aditya Birla Group, Godrej, ITC, Bajaj, and Hero — have collectively contributed to the country’s development. (Representational Photo) 
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