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Public Policy
Monthly Mailer |
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| June 2025 |
Volume 7, Issue 6 |
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| Karnataka Government Enacts Ordinance to Protect Platform-Based Gig Workers |
| On 27 May 2025, the Government of Karnataka published the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025. This makes Karnataka the second Indian state—after Rajasthan—to introduce statutory safeguards for the gig economy. Although the Ordinance is in-force, it must be ratified by the Karnataka Legislative Assembly and Council within six weeks of their next session; otherwise, it will lapse. |
| Last year, nasscom provided detailed, clause-by-clause feedback on the draft Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024, drawing attention to several areas of concern. The new Ordinance does address some of our earlier observations: it exempts platforms from a minimum notice period for termination, ties the welfare fee to workers’ payouts (with a cap and tiered rates for different aggregator models), removes the government-prescribed contract template, and relaxes certain algorithmic-disclosure requirements. |
| However, significant issues remain. The Ordinance still lacks a sunset clause, and its definition of “gig worker” is not aligned with the Code on Social Security, 2020, which may undermine the very concept of gig work. Further, the Payment and Welfare Fee Verification System imposes an intrusive, real-time mechanism for monitoring every transaction occurring within the state. |
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| Tamil Nadu | Stakeholder Consultation on the Deep Tech Startup Policy (03 May 2025) |
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| Nasscom attended a stakeholder consultation convened by the Government of Tamil Nadu to discuss its proposed Deep Tech Startup Policy. The pre-consultation identified five priority areas; one of the most critical was funding and investment acceleration, an area where we have actively promoted patient capital and accelerator ecosystems for deep-tech ventures. |
| In our preliminary feedback, we recommended that the policy explicitly distinguish deep-tech start-ups by (a) the nature of advanced technology or function involved, and (b) the necessity of intellectual‐property rights. We also urged a fund-of-funds structure dedicated to deep-tech, where the State Government would act as anchor investor. For effective scale, we proposed an investment ticket size of ₹50–200 crore, aligned with global norms. To identify and evaluate eligible start-ups, we suggested using the Techno-Commercial Readiness & Market Maturity Matrix developed by NITI Aayog. Finally, we proposed categorising deep-tech companies into “commercial” and “strategic” tracks, depending on the State’s strengths and use cases. |
| Nasscom will continue to engage with the Tamil Nadu government as the policy evolves—contact swapnil@nasscom.in for further details. |
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| Tax | Meeting with the Revenue Secretary (21 May 2025) |
Nasscom met the Revenue Secretary, Ministry of Finance, to discuss current tax challenges affecting the technology and e-commerce sectors. Key issues raised included:
- GST
- The need to remove the “intermediary” classification, as prior circulars have failed to prevent IT services from being wrongly treated as intermediary transactions.
- Complexities faced by IT/ITeS companies operating via overseas branch offices.
- Disputes over the tax treatment of delivery charges for food-delivery platforms.
- Recognition of the seller’s “home state” (principal place of business) for e-commerce operators in other States with the warehouse address in each State registered as an additional place of business.
- International Taxation
- Navigating tax implications for data-centre operations.
- Rationalisation of the safe-harbour regime and refinement of Advance Pricing Agreements under transfer-pricing rules.
- Corporate Tax
- Difficulties faced by start-ups and the broader tech sector under ESOP regulations.
- Concerns with the faceless assessment regime, appeals, and litigation processes.
- The need to overhaul the TDS framework for greater clarity.
We will follow up with the government on these issues; for further information, please contact vertika@nasscom.in. |
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| Global Data Protection Dialogues | Key Takeaways for India’s Industry and Policymakers |
Nasscom was invited to two major global events on personal data protection: the IAPP Global Privacy Summit (Washington DC, 23–24 April 2025) and the Global CBPR Workshop (Singapore, 26–28 May 2025).
- IAPP Global Privacy Summit
In Washington DC, our Vice-President and Head of Government Policy, Ashish Aggarwal, presented nasscom’s analysis of India’s DPDPA (2023), its draft Rules, and operational implications. He also met with senior US government officials, trade bodies, and think tanks to exchange views on global data and AI policy.
- Global CBPR Workshop
In Singapore, Ashish Aggarwal shared insights on nasscom’s work with Indian industry and government to evaluate the Global CBPR framework. He examined compatibility with DPDPA requirements, cost–benefit for Indian entities, and potential enhancements to law-enforcement cooperation via the CAPE membership for cross-border privacy enforcement.
Both events underscored the rapid evolution of data-protection norms worldwide, reinforcing the urgency for India to finalise DPDPA operationalisation and explore interoperability with key trading partners’ data-privacy regimes. (Read More) |
| Roundtable | India’s Roadmap for AI, Competition & IP (26 May 2025) |
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Nasscom participated in a high-level roundtable in Delhi on India’s strategic roadmap for AI, competition law and intellectual property. Nasscom’s Sudipto Banerjee joined:
- Professor Unnat P Pandit, Controller General of Patents, Designs & Trademarks & Registrar of Copyright
- Professor Christopher S Yoo, University of Pennsylvania
- Ameet Datta, ADP Law Offices
- Meghna Bal, Director, Esya Centre
Sudipto stressed the critical need for India’s copyright law to enable the legal training of AI models, while preserving creators’ legitimate rights. He urged the establishment of clear guardrails to balance innovation acceleration with robust IP protection. |
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| REGULATORY CONSULTATIONS |
| BIS | Draft Standard for E-Commerce Self-Governance (27 May 2025) |
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Nasscom participated in a BIS consultation on the draft Principles and Guidelines for Self-Governance in E-Commerce. We emphasised the need to balance consumer protection with a practical industry roadmap aligned to existing regulations. Our primary concerns included:
- Exclusion of sellers and technical service providers from the standard’s scope.
- The burden of mandatory product verification on e-commerce platforms.
- Requirements for disclosing material composition and environmental impact.
- Proposed API-integration mandates and express-consent obligations, which could create operational bottlenecks.
- Overreach regarding prohibitions on “related, associated, or affiliated” sellers.
Given the significantly altered scope post-discussion, we have requested a fresh consultation and urged BIS to clarify whether the standard should focus exclusively on platforms or expand to include sellers and service providers. (Read More) |
| We will follow up with BIS as appropriate; for details, please write to swapnil@nasscom.in. |
| DoCA | Stakeholder Meeting on Dark Patterns (28 May 2025) |
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| Vertika Misra from nasscom took part in a DoCA consultation on Guidelines for Dark Patterns. The meeting showcased thirteen identified “dark pattern” practices and highlighted ongoing consumer-awareness campaigns. The Hon’ble Minister, Shri Prahlad Joshi, encouraged all e-commerce and digital platforms to fully comply with the guidelines and integrate them within their governance and consumer-protection frameworks. |
| MoWCD | Consultation on SHe-Box Portal (13 May 2025) |
Nasscom attended a MoWCD consultation on the roll-out of the SHe-Box Portal, a government initiative to record and address workplace sexual-harassment complaints. We expressed support for voluntary industry adoption and requested an official government communication outlining:
- Portal features and objectives.
- Operational guidelines for ICs.
- Data-confidentiality assurances.
This will help disseminate accurate information to the industry. For feedback, please contact sudipto@nasscom.in. |
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| REGIONAL ENGAGEMENTS |
| Karnataka Government | Stakeholder Consultation on the State’s IT Framework (23 May 2025) |
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Nasscom and the membership team hosted a pivotal consultation in Bengaluru with the EITBT, Government of Karnataka. Industry leaders and government officials convened to chart a future-ready, industry-aligned IT framework for the State.
Key takeaways:
- Identified policy interventions to unlock emerging technologies’ potential.
- Discussed strategies to reskill and future-proof Karnataka’s digital workforce.
- Emphasised extending IT infrastructure beyond Bengaluru into Tier II and III cities.
- Reviewed regulatory reforms to enhance ease of doing business in the State.
- Encouraged multi-stakeholder collaboration to foster a resilient, innovation-driven IT ecosystem.
Bhaskar Verma, Regional Head and Ashish Aggarwal, Vice-President and Head of Government Policy represented nasscom. We will continue to support Karnataka on these initiatives. Please share any inputs with vertika@nasscom.in. |
| North-Eastern State Governments | Panel Discussion: “Beyond Bits & Bytes into AI & 5G” (23 – 24 May 2025) |
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At the Rising North-East Investor Summit 2025 held in Delhi, nasscom’s Vertika Misra joined a panel with:
- Shri Manik Saha, Hon’ble Chief Minister of Tripura
- Shri Chandra Sekhar Pemmasani, Minister of State for Telecommunications
- Shri Prashant Kumar Singh, Chief Secretary, Manipur
- Other industry leaders
Vertika emphasised nasscom’s role in building a robust AI ecosystem in the North-East, covering:
- AI for social inclusion and sustainable regional development.
- Reskilling initiatives to prepare the workforce for AI and 5G.
- Promoting responsible and ethical AI deployment.
- Driving AI adoption within government and MSMEs.
- Nasscom’s dedicated programmes for North-Eastern states, including infrastructure support and targeted capacity building.
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| Uttar Pradesh Government | GCC Policy (Effective 07 May 2025) |
Uttar Pradesh has launched its new GCC Policy for a five-year period, aiming to attract and grow GCCs in the State. Nasscom’s suggestions on GCC terminology, skilling infrastructure, R&D incentives, and IP subsidies have been incorporated. The policy offers:
- Front-end land subsidies and 100 % stamp-duty exemptions/reimbursements.
- Capital and interest subsidies.
- Operational-expenses and payroll subsidies.
- Employer’s EPF contributions refunded.
- Talent-development and skilling grants.
- R&D and innovation incentives.
- Case-by-case project incentives.
To support implementation, the State will establish a dedicated Technical Support Group (TSG) within the Department of IT & Electronics, staffed by industry experts and global leaders. (Read more). |
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| TRAI | Adoption of “1600” Series for Government Outreach |
| TRAI has mandated the DoT assigned “1600” number series exclusively for official government outreach. This ensures citizens can distinguish authentic government calls from unsolicited or spam calls. Early adoption by all state and central ministries is essential so that critical information and citizen-services calls are not ignored or mis-classified as spam. (Read more). |
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| EPFO | Transfer Claims Update |
| Addressing a long-standing industry request, EPFO issued a circular on 20 May 2025 clarifying that PF transfer claims should no longer be automatically rejected due to overlapping employment dates. Going forward, EPFO regional offices will seek clarifications on overlaps only when genuinely necessary or suspicious. This measure will simplify and expedite PF transfers, greatly benefiting employees switching jobs.(Read more). |
| AI |
Artificial Intelligence |
| BIS |
Bureau of Indian Standards |
| CBPR |
Cross-Border Privacy Rules |
| COSS |
Code on Social Security, 2020 |
| CAPE |
Cross-Border Privacy Enforcement |
| DPDPA |
Digital Personal Data Protection Act, 2023 |
| DoCA |
Department of Consumer Affairs |
| DoT |
Department of Telecommunications |
| DSCI |
Data Security Council of India |
| EITBT |
Department of Electronics, Information Technology & Biotechnology |
| EPFO |
Employees’ Provident Fund Organisation |
| GCC |
Global Capability Centre / Centres |
| GST |
Goods and Services Tax |
| IC |
Internal Committee |
| IMDA |
Infocomm Media Development Authority |
| IT |
Information Technology |
| ITES |
Information Technology Enabled Services |
| MEA |
Ministry of External Affairs |
| MEITY |
Ministry of Electronics and Information Technology |
| MoWCD |
Ministry of Women and Child Development |
| MSME |
Micro, Small and Medium Enterprises |
| NITI |
National Institution for Transforming India (NITI Aayog) |
| PDPC |
Personal Data Protection Commission |
| PF |
Provident Fund |
| PRP |
Privacy Recognition for Processors |
| TDS |
Tax Deducted at Source |
| TRAI |
Telecom Regulatory Authority of India |
| UP |
Uttar Pradesh |
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| www.nasscom.in |
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