The Ministry of Electronics and Information Technology on Wednesday has clarified that the interim trade framework between India and the United States does not restrict India's regulatory autonomy in data governance, according to a written reply submitted in Parliament.
Minister of State for MeitY Jitin Prasada, in a written response to a question by Leader of Opposition Rahul Gandhi regarding the impact of the proposed India–US Bilateral Trade Agreement (BTA) on India's data governance framework, said that India has preserved its regulatory autonomy in this area.
"This interim framework charts a pathway toward achieving reciprocal and mutually beneficial digital trade guidelines as a vital component of the India-US BTA. India has preserved its regulatory autonomy in data governance, while striking a careful balance between advancing emerging technologies and promoting cross-border cooperation," Prasada said in a written reply.
Gandhi has asked about the manner in which the government reconciles its commitment under the United States– India Joint Statement to “reduce barriers to digital trade” with India's data localisation rules, cross-border data regulations and broader digital framework.
The leader of opposition in the lower house asked the minister whether any policy changes are proposed to protect the country's regulatory autonomy and if the commitments made under the pact could restrict India's ability to mandate local storage of critical data, limit foreign access to sensitive digital infrastructure or regulate artificial intelligence (AI) now or in the future.
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Prasada said that the India-US Bilateral Trade Agreement (BTA), currently under negotiations, seeks to foster a free, fair, and dynamic digital environment, enabling deeper collaboration in the field of Digital Trade.
"India has a vibrant IT ecosystem with revenues exceeding 280 billion US dollars and exports of 225 billion US dollars in FY 2024-25. It employs more than 60 lakh people. Therefore, digital trade is an important component of India's economy," the minister said.
He said that India and the United States have established a framework for an Interim Agreement that reflects both nations' shared commitment to fostering an open and equitable digital trade environment.
"In no way, such agreements restrict India's ability to take measures for managing India's own data within the established legal framework," Prasada said. The minister said that the government has notified the Digital Personal Data Protection (DPDP) Rules 2025 to provide a comprehensive framework for the processing of personal data, including cross-border transfers.
He said that the framework enables the central government to prescribe additional conditions, including restrictions on the transfer of certain categories of personal data under limited circumstances, where necessary.
"Similarly, sector regulators prescribe mandates by considering the criticality of the sector. E.g. Reserve Bank of India (RBI) mandates that all Payment System Data must be stored exclusively on systems located within India," Prasada said. He said that the government remains steadfast in its commitment to advancing India's digital economy, while ensuring that domestic regulatory autonomy is preserved and strengthened.
(With inputs From PTI)
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