Responsible use of data can further innovation driven profitability, growth in India: Report

Stressing the need for collective action on part of all stakeholders towards data privacy and protection, a report has said that a responsible use of big data may push innovation-driven profitability and growth in India.

The country is seeing revolution with regard to personal data usage, even as it is adding value to common life, new risks such as loss of privacy, financial losses as well as unethical use which can negatively impact the enterprises and investors are also emerging, said the report 'Unlocking the potential of India's Data Economy: Practices, Privacy and Governance' released on Thursday.

The report, jointly released by Omidyar Network India and Monitor Deloitte, also highlighted that personal data proliferation means that behavioral data is used to create detailed personal profiles but many may find this unsettling.

"India is at a nascent stage of evolution on privacy issues. Consumers do not yet fully recognise the need for data privacy. Even as the personal data protection bill is waited, enterprises primarily adopt a 'tick the box' compliance lens to data privacy and protection.

"However, a responsible approaches to big data can lead to innovation driven profitability and growth," the report said.

The issue need not be one of a tug-of-war between business opportunity and social acceptability. Looking at ethical and societal aspects of data collection and usage can lead to sustainable success in the marketplace, the report said.

Among others, the report emphasised that there is need for collective action towards data privacy and protection and all the stakeholders -- enterprises, investors, regulators and civil society -- must collectively join hands and work towards pursuing data privacy and protection.

Also, the roadmap for data privacy in India will evolve.

From 'privacy as compliance', businesses will focus on privacy to build trust with their customers; eventually new business models will emerge to help individuals assume greater control of their data and narratives, it said.

"As tech-led investors focused on impact, we believe that technology can drive massive impact in ways that were not possible earlier and have invested in a unique portfolio of enterprises that accelerate the digital journey of India's 'Next Half Billion' to access aspirational services," said Roopa Kudva, Managing Director, Omidyar Network India.

Omidyar Network India is an investment firm focused on social impact.