Affordable Internet and the Digital Economy: New Challenges for Consumers

Affordable Internet and Consumer Interests

• The expansion of affordable internet has transformed daily life in India by making education, banking, digital payments, entertainment and online shopping more accessible.
• The entry of Jio in 2016 intensified competition in the telecom sector and significantly reduced data prices. The growth of digital payments after demonetisation and the COVID-19 pandemic further accelerated online education, work and shopping.
• India’s digital economy was estimated at ₹31.64 lakh crore in 2022–23, accounting for 11.74% of national income.
• Digital payments have also expanded rapidly. In September 2026, UPI recorded 24.07 billion transactions, worth about ₹29.37 lakh crore.
• However, the growth of digital transactions does not necessarily mean that household income or savings have increased. Easy purchasing, personalised advertising and limited-period offers may encourage unplanned consumption.
• Digital platforms also collect valuable information about users, including their searches, purchases, content preferences and responses to advertisements.
• This raises concerns about data privacy, transparency and informed consent. Consumers should know what data is collected, why it is used and whether it is shared with other businesses.
• The issue is therefore not limited to privacy. User data has significant economic value, and questions arise over who benefits from that value and whether digital markets could deepen economic inequality.
• The proposed Jio IPO has added another dimension to the debate. Its evaluation should consider the company’s future earnings, valuation, risks and transparency rather than popularity alone.
• The next stage of India’s digital growth should focus not only on more transactions and profits but also on stronger consumer rights, data protection and greater transparency.

Government Initiatives for Internet Connectivity and Digital Inclusion in India

• Digital India
  • Launched in 2015 to build a digitally empowered society and knowledge economy.
  • Focuses on digital infrastructure, online public services and citizen empowerment. 
• BharatNet
  • Expands high-speed internet connectivity to rural areas through optical fibre.
  • By early 2026, more than 2.15 lakh Gram Panchayats were connected.
  • Optical fibre network increased from 19.35 lakh route km in 2019 to 42.36 lakh route km in 2025. 
• 5G Connectivity
  • By December 2025, 5G services covered 99.9% of districts, supported by more than 5.18 lakh Base Transceiver Stations.
  • The Telecommunications Act, 2023 and National Broadband Mission support faster infrastructure development. 
• Affordable Internet
  • Data prices declined sharply from around ₹269 per GB in 2014 to ₹8–10 per GB in 2025–26.
  • Broadband subscriptions crossed 1 billion in November 2025, significantly expanding internet access. 
• Digital Public Infrastructure (DPI)
  • Platforms such as Aadhaar, UPI and DigiLocker convert internet access into practical public and financial services.
  • Aadhaar enables welfare delivery and access to government and financial services.
  • UPI supports low-cost, real-time digital payments.
  • DigiLocker provides secure, paperless access to official documents. 
• High-Performance Computing
  • Under the National Supercomputing Mission, 38 supercomputers with a combined capacity of 44 Petaflops have been deployed.
  • This supports research and innovation in areas such as AI, climate modelling, biotechnology and advanced manufacturing. 
• PMGDISHA
  • Focuses on improving digital literacy in rural India.
  • By March 2024, 6.39 crore people had been trained under the programme. 
• DIKSHA and SWAYAM
  • DIKSHA provides digital educational content and teacher-training resources.
  • SWAYAM expands access to higher education through online courses and certifications. 
• Common Service Centres (CSCs)
  • Act as last-mile digital access points, particularly for citizens who lack devices, reliable connectivity or digital skills.
  • More than 6.5 lakh Village Level Entrepreneurs operate these centres. 
• PM-WANI
  • Launched in December 2020 to provide affordable public Wi-Fi, especially in rural and remote areas.
  • Uses a decentralised model involving Public Data Offices.
  • More than 4.09 lakh Wi-Fi hotspots had been deployed by February 2026. 
• Digital Skilling and Innovation
  • Atal Innovation Mission promotes innovation through Atal Tinkering Labs.
  • FutureSkills Prime develops skills in AI, cloud computing, cybersecurity and data analytics.
  • IndiaAI Mission supports AI infrastructure, datasets and computing capacity.
  • Startup India promotes entrepreneurship and employment, including in Tier-II and Tier-III cities. 

Digital Personal Data Protection (DPDP) Rules, 2025

What are the DPDP Rules, 2025?

• The DPDP Rules, 2025 provide the operational framework for implementing the Digital Personal Data Protection Act, 2023.
• Their main aim is to:
  • Strengthen citizens’ control over their personal data.
  • Ensure organisations use personal data responsibly.
  • Prevent unauthorised use and reduce digital harms.
  • Promote a secure and trustworthy digital economy.

Key Provisions

• Phased implementation
  • Organisations get an 18-month compliance period to modify their systems and meet the requirements.
  • Data Fiduciaries must provide simple and purpose-specific consent notices.
  • Consent Managers must be India-based entities.
• Data breach notification
  • Individuals affected by a data breach must be informed without delay.
  • The notice should explain the nature of the breach, possible consequences, corrective steps and contact details.
• Transparency and accountability
  • Data Fiduciaries must provide clear contact details for data-related concerns.
  • Significant Data Fiduciaries face stricter requirements, including independent audits and impact assessments.
• Digital Data Protection Board
  • The Rules provide for a fully digital Data Protection Board with four members.
  • Citizens can submit and track complaints through an online portal and app.
  • Appeals against Board decisions will be handled by TDSAT.
• Rights of individuals
  • Individuals, called Data Principals, can:
    • Access their personal data.
    • Correct or update inaccurate information.
    • Request deletion of their data.
    • Nominate another person to exercise their rights on their behalf.
  • Requests are required to be addressed within 90 days.

Digital Personal Data Protection Act, 2023

About the Act

• The DPDP Act, 2023, enacted in August 2023, establishes India's framework for protecting digital personal data.
• It lays down responsibilities for organisations that collect or process personal data.
• It follows a SARAL approach - Simple, Accessible, Rational and Actionable - aimed at keeping the data protection framework easy to understand and implement.

Seven Core Principles

The framework is based on:

• Consent and transparency
• Purpose limitation
• Data minimisation
• Accuracy
• Storage limitation
• Security safeguards
• Accountability

These principles seek to ensure that personal data is collected and processed lawfully and only for specified purposes.

Important Terms

• Data Fiduciary: Entity that determines the purpose and means of processing personal data.
• Data Principal: Individual to whom the personal data relates.
  • For children, this includes the parent or legal guardian.
  • For persons with disabilities who cannot act independently, it includes the lawful guardian.
• Data Processor: Entity that processes personal data on behalf of a Data Fiduciary.
• Consent Manager: Provides a platform through which individuals can give, manage, review or withdraw consent.
• Data Protection Board: Body responsible for overseeing compliance and dealing with data protection violations.
• Appellate Tribunal: TDSAT hears appeals against decisions of the Data Protection Board.

Penalties

• Failure to maintain adequate security safeguards can attract penalties of up to ₹250 crore.
• Failure to report data breaches or violations involving children can attract penalties of up to ₹200 crore.
• Other violations can attract penalties of up to ₹50 crore.

DPDP and RTI

• The DPDP framework also addresses the relationship between privacy and the Right to Information (RTI).
• It seeks to balance an individual's right to privacy with the public interest in accessing information.
• The Justice K.S. Puttaswamy v. Union of India (2017) judgment recognised privacy as a fundamental right.
• At the same time, Section 8(2) of the RTI Act continues to allow disclosure where public interest outweighs the potential harm to privacy.
• Thus, the framework attempts to maintain both privacy protection and transparency in public life.

Practice Question

Q: With reference to the Digital Personal Data Protection (DPDP) Act, 2023 and the DPDP Rules, 2025, consider the following statements:

1. A Data Principal has the right to access, correct and request deletion of their personal data. 
2. A Data Fiduciary merely processes personal data, while the Data Processor determines the purpose and means of processing. 
3. The DPDP framework is based on principles such as purpose limitation, data minimisation and accountability. 
4. Appeals against decisions of the Data Protection Board can be made to the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

Which of the statements given above are correct?

A. 1 and 2 only

B. 1, 3 and 4 only

C. 2, 3 and 4 only

D. 1, 2, 3 and 4

Answer: B. 1, 3 and 4 only

Explanation:

• Statement 1 is correct. A Data Principal has the right to access, correct or update personal data and request its deletion. 
• Statement 2 is incorrect. The Data Fiduciary determines the purpose and means of processing personal data, while the Data Processor processes data on behalf of the Data Fiduciary. Hence, the roles have been reversed in the statement.
• Statement 3 is correct. The framework includes purpose limitation, data minimisation, accuracy, storage limitation, security safeguards and accountability among its core principles. 
• Statement 4 is correct. Appeals against decisions of the Data Protection Board can be heard by TDSAT.