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Public Policy
Monthly Mailer |
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| August 2024 |
Vol 6, Issue 8 |
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| CBPR | Technical Workshop on Cross Border Privacy Rules |
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| Nasscom and DSCI, together with the MEITY and MEA organised an in-person, closed-door discussion on "Global Cross Border Privacy Rules (CBPR) Forum: Considerations for India” on 28th August, 2024 in New Delhi. The event was attended by senior government representatives of SEBI, MHA, RBI, Department of Commerce, and others, as well as leaders from industry. The discussion was designed to develop a shared understanding of key considerations and mechanisms to strengthen cross-border personal data protection and international trade for India. |
| This event is a precursor to an international technical workshop on the Global CBPR Rules that we are conducting in Delhi from 19th -21st September 2024. The upcoming workshop will feature participation from foreign governments and regulators, Indian government officials and industry. The objective of the workshop is to deep dive into the CBPR framework and understand its relevance for India. |
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| MoF | Submission of Post Budget Memorandum 2024-25 |
| Based on feedback from industry, we submitted a detailed post budget memorandum to MoF highlighting our concerns and recommendations to strengthen the Budget proposals. As part of our suggestions, we have requested MoF to abolish S. 56(2)(viib) of Income Tax Act, 1961 (IT Act) from retrospective effect (i.e., w.e.f AY 2013-14) and align the language of proposed sub-clause (f) of S. 2(22) with other sub-clauses of S. 2(22) by including a reference to accumulated profits. We suggested that the Budget proposal to include unlisted bonds and unlisted debentures as per the Finance Bill, 2024, as an amendment to S. 50AA of the IT Act, should be omitted. We also suggested introducing an enabling provision under the IT Act such that any equalization levy (EL) paid in excess of the actual EL liability can be adjusted against income tax liability, if any, for that year. (Read more) |
| RBI | Feedback on the draft regulations and directions on export and import under FEMA |
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| Our suggestions to the RBI focused on easing regulations for small and medium e-commerce sellers by proposing exemptions for low-value shipments and allowing periodic consolidated filings. Additionally, to improve overall ease of doing business, we recommended integrating the EDPMS and eBRC portals and enabling API access for sellers and their third-party systems. |
| The draft guidelines to rationalise export and import regulations under the FEMA were released for public feedback on July 2, 2024. These guidelines form a part of the Statement on Developmental and Regulatory Policies released earlier this year in June 2024. The key objective of the draft guidelines was to simplify export and import regulations to boost ease of doing business, particularly for small exporters and importers. (Read more) |
| UP Government | Representation on Granting 'Industry Status' to IT-BPM sector in UP |
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| Presently, IT units in Uttar Pradesh (UP) fall under the services sector and do not have the benefit of being classified as an industry. This can limit the IT sector's access to various benefits, impede competitiveness, and hinder its overall growth and development. Recent media reports have highlighted that the government is in the process of framing a new policy, which will only be applicable to new or expanding units. In our representation to the UP government, we suggested that the new policy to grant industry status to IT-BPM sector should not be restrictive and should include existing players along with new or expanding IT/ITES units. Granting industry status to IT-BPM will enable IT/ITeS companies to avail incentives on land and electricity, attract investments and spur growth of the sector in the state. |
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| TRAI | Consultation Paper on the Framework for Service Authorisations to be Granted Under the Tele-communications Act, 2023 |
| We highlighted that the new Telecommunication Act, 2023 uses the term 'authorisation' instead of 'license' (the Telegraph Act and other telecom laws used the term 'license'). Such use provides scope or flexibility to make different terms and conditions of authorisation in the drafting of rules. Given this progressive legislative development and citing our principal position, we stated that authorisation regime should be based on activity-led and risk-based approach where obligations should be proportionate to the harms and risks associated with it. Building on these principles, we recommended rationalising the existing regulatory frameworks with respect to dark fiber, HCCPs, audiotex, IXP, CDNs, nationwide internet telephony license, and allowing captive use authorisation for enterprises. (Read more) |
| Further, our counter comments stated that OTTs are not under the ambit of Telecommunications Act 2023 and hence should not be brought under service authorisation. We reiterated our position that OTTs and TSPs complement each other, wherein both make substantial investments, and they are subject to adequate regulatory frameworks, respectively. (Read more) |
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| DOT | Draft Telecommunication ROW Rules, 2024 |
| Nasscom provided its feedback on the draft ROW Rules issued by DOT under the Telecommunications Act 2023. Our submission highlighted that in addition to telcos, DCs also need access to RoW for provision of dark fiber connectivity to expand their facility beyond one building or campus to a nearby location which is across a 'public road'. Given the rapid growth in cloud adoption, increased usage of time/latency-sensitive applications, and for scalability of inter-DC traffic, we urged DOT to examine the need for specific reference to dark fiber within the scope of ROW Rules and further issue a clarification allowing UL access/UL-VNO access/NLD license holders to provide dark fiber to DC customers. (Read more) |
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| ASCI x nasscom | Webinar on Conscious Patterns |
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| Nasscom collaborated with the ASCI and Parallel HQ, a design thinking organisation, on the release of an insightful report titled 'Conscious Patterns: Enabling Informed Consumer Choices Online', which explores dark patterns in India based on research of the 53 most downloaded Indian apps. |
| Ashish Aggarwal from nasscom highlighted the importance of conscious design practices extending beyond the interface level to the core operational level of business models and the role that technology such as AI and PET's can play in developing ethical consumer facing solutions. |
| Haryana Government | Industry meeting with Haryana Government |
| On August 14, 2024, nasscom led an industry delegation to Chandigarh to meet Shri Anand Mohan Saran, Additional Chief Secretary, Labour Department, Haryana and Shri Arun Kumar Gupta, Additional Chief Secretary, Industry, Haryana. During these interactions we discussed some of the ongoing industry concerns of the IT-BPM sector in Haryana and possible options to address them. We also explored future avenues to further strengthen the ease of doing business in the state. |
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| RBI | Draft Framework on Alternate Authentication Mechanisms for Digital Payment Transactions |
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| The aim of the proposed framework is to enable the payments ecosystem to adopt alternative authentication mechanisms. This will widen the choice of authentication factors available to Payment System Operators and users. The proposed framework provides the broad principles which will have to be complied with by all the participants in the payment chain while using various forms of authentication. All Payment System Providers and Payment System Participants (banks and non-banks) will have to ensure compliance with this framework within three months from the date of issue of these directions by the RBI. Please share your inputs and suggestions before September 10, 2024, to ananya@nasscom.in. (Read more) |
| MOF | Request for Inputs on Pre-Budget Memorandum 2025-26 |
| We have started the process of preparing nasscom's Pre-Budget Memorandum 2025-26 (PBM) to be submitted to the Ministry of Finance. Based on our last submission, we plan to structure this year's PBM to suggest measures to boost Indian economy and to sustain global competitiveness of the Indian IT-BPM sector. The aim is to create a balanced approach that not only fosters economic growth but also ensures that the tech sector, a significant contributor to India's economy, remains at the forefront of global competition. Please share your inputs and suggestions before September 15, 2024, to tejasvi@nasscom.in. (Read more) |
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| DOT | Draft Telecom Rules |
| Pursuant to Telecommunications Act 2023, DOT has been issuing draft Rules under various sections. The recent set of these draft rules are: |
a) Procedures and Safeguards for Lawful Interception of Messages Rules, 2024
b) Telecommunications (Critical Telecommunication Infrastructure) Rules, 2024
c) Telecommunications (Telecom Cyber Security) Rules, 2024
d) Temporary Suspension of Telecommunication Services Rules, 2024 |
| The last date to provide inputs to DOT on these Rules is September 28, 2024. In case you are interested in the subject, kindly write to policy@nasscom.in to share your inputs latest by September 20, 2024. |
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| WTO JSI | WTO JSI on Electronic Commerce |
| On July 26, 2024, the Co-conveners of the WTO JSI on Electronic Commerce (including Australia, Japan, and Singapore) announced that after five years of negotiations, participants had achieved a stabilised text. The agreement is expected to benefit consumers and businesses involved in digital trade, especially MSMEs. It will also play a pivotal role in supporting digital transformation among participating members. The key provisions of the stabilised text include a) commitments for parties to establish legal frameworks for electronic transactions consistent with the UNCITRAL Model Laws on Electronic Commerce (1996) b) Legal commitments towards electronic authentication and electronic signatures, electronic contracts, electronic invoicing and paperless trading c) Single windows data exchange and system interoperability d) customs duties on electronic transmissions e) Open government data usage f) Online consumer protection, personal data protection and cybersecurity etc. |
| Nasscom is engaging with the government and industry on the JSI to contemplate the benefits offered by the agreement for growth and development of the sector. In case of any feedback on the impact of the agreement, please write to us at policy@nasscom.in. (Read more) |
| GSTAT | GST Appellate Tribunal Benches Notified |
| MoF issued a new notification dated 31 July 2024 superseding previous notifications to constitute the GSTAT with effect from September 1, 2023. The Principal Bench of the GSTAT would be at New Delhi with 31 State benches across various states and Union Territories. Some states will have multiple benches or additional circuit benches based on appeal volumes. (Read more) |
| DGFT | DGFT Issues draft Modalities for Pilot Launch of ECEH |
| The DGFT, Ministry of Commerce & Industry has issued the draft modalities for the pilot launch of ECEH and sought proposals for setting up the same. The draft covers issues like a) Movement of goods to ECEH b) Pre-screening of goods at ECEH c) Design of ECEH d) Fulfilment processes, and e) Process flow for customs clearance etc. |
| In Section B, Chapter 9 of the Foreign Trade Policy 2023, ECEH were proposed as designated areas, acting as a center for favorable business infrastructure and facilities for cross-border ecommerce activities. The major objectives of ECEH are to provide predictability and the shortest possible turnaround time for ecommerce exports, easy re-import for ecommerce returns or rejects and bringing various cross-border ecommerce stakeholders under one roof. |
| As a result of nasscom's persistent efforts in engaging DGFT towards improving the ecommerce export framework, these modalities address several key issues highlighted in our previous recommendations (Read here). It may be recalled that on January 4, 2021, nasscom had submitted a representation to the Commerce Secretary, towards the review of the previous Foreign Trade Policy 2015 - 2020 (FTP) that may significantly boost the performance of IT/ITeS industry in India. Additionally, nasscom had interacted with the Hon'ble Minister of Commerce and Industry regarding the review and had submitted detailed response to the DGFT on the review of the FTP (read details here). |
| In case of any feedback on the draft modalities, please write to us at policy@nasscom.in. |
| ASCI |
Advertising Standards Council of India |
| CBPR |
Cross Border Privacy Rules |
| DC |
Data Center |
| DGFT |
Directorate General of Foreign Trade |
| DOT |
Department of Telecommunications |
| DPDPA |
India's Digital Personal Data Protection Act, 2023 |
| eBRC |
Electronic Bank Realisation certificate |
| ECEH |
E-Commerce Export Hub |
| EDPMS |
Export Data Processing and Monitoring System |
| EL |
Equalisation Levy |
| FEMA |
Foreign Exchange Management Act |
| FTP |
Foreign Trade Policy |
| GST |
Goods and Services Tax |
| GSTAT |
Goods and Services Tax Appellate Tribunal |
| HCCPs |
Hosted Contact Center Service Providers |
| JSI |
Joint Statement Initiative |
| IT |
Information Technology |
| IXP |
Internet Exchange Point |
| BPM |
Business Process management |
| MEITY |
Ministry of Electronics and Information Technology |
| MHA |
Ministry of Home Affairs |
| MSME |
Micro Small and Medium Enterprise |
| MOF |
Ministry of Finance |
| PBM |
Pre Budget Memorandum |
| RBI |
Reserve Bank of India |
| ROW |
Right of Way |
| SEBI |
Securities and Exchange Board of India |
| TRAI |
Telecom Regulatory Authority of India |
| TSP |
Telecom Service Provider |
| UNCITRAL |
United Nations Commission on International Trade Law |
| WTO |
World Trade Organization |
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| www.nasscom.in |
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