Small biz may gain from government’s data plan

Micro, small and medium enterprises (MSMEs) as well as small startups will benefit more than larger companies from the government’s new plan to allow sharing of non-personal data, according to the expert committee looking into its governance framework.

Kris Gopalakrishnan, the former Infosys vice chairman who heads the committee that released its report last week, said data sharing will not only create economic value but also will be a win-win for the government and multinational companies.

While some experts have criticized the plan over expectations that big, data-rich companies will share data with small businesses to help them innovate, Gopalakrishnan said companies could also get data from the government.

He cited the example of firms building or working on smart cities. “These MNCs can also get data from the government, on smart cities, location, housing data, weather data to implement smart city projects. To increase economic value, they need to have access to as much (data) as possible. Everyone will benefit.”

He said the panel had submitted the report after consultations with relevant stakeholders, multinational companies and government authorities in several countries.

According to experts, while sharing of non-personal data—information that cannot identify a person—is a good idea in principle, the final recommendation can do with some tweaks.

“In its current shape and form, the proposed law will help small firms, but will not be sustainable. Data sharing should become an enabler for small businesses and startups, who can tie up with big techs and come up with a win-win formula,” Sachin Taparia, founder and chairman, LocalCircles said.

The panel has sought feedback by 13 August.