Statement by India at the Sixth Session of the Intergovernmental Group of Experts on E-commerce and the Digital Economy of UNCTAD delivered by Ambassador Priyanka Chauhan, Deputy Permanent Representative

(Geneva, 11th May 2023)

Thank you, Mr. Chair

1. Since I am taking the floor for the first time, let me begin by congratulating the distinguished Chair and Vice-Chair for their election to steer the proceedings of this IGE. I would also like to thank Secretary General Grynspan for her opening remarks, the UNCTAD Secretariat for preparing the Background Note for discussion and the insightful presentations made by the panelists so far.

2. India aligns itself with the statement delivered by Indonesia on behalf of the G77 and China. We heard about the India Stackproject earlier today in the presentation by Mr. Sharma from i-Spirt. I will take this opportunity to speak on some of the Government’s perspectives and initiatives, especially in the context of our G20 Presidency.

Mr. Chair,

3. Exponential digitalization in the last half-century has led to an exponential rise in the production of data across countries and economic and social sectors. The increasing velocity, volume and variety of this data, if combined with veracity and vitality, can accelerate effective progress on SDGs. Data, thus, has the potential to boost productivity and help accelerate the achievement of the sustainable development goals through evidence-based decision making. Without an effective data empowerment and protection architecture which ensures privacy and data protection, governments will be unable to use data effectively to deliver better insights, policies and services.

4. For developing countries specifically, it can be challenging to pursue the double objective of becoming digital governments themselves, that is, to rethink and re-engineer government processes and public services to respond to users’ needs and expectations; and to cultivate appropriate enabling environments - legal, policy, regulatory, and technical - for harnessing data from public and private sources, which can in turn underpin economic and social development. Challenges arise from a lack of stable institutions, low digital maturity and literacy, and gaps in regulatory practices to protect individuals and organizations.

5. Despite the pandemic having catalyzed digital transformation and data generation and use in low- and middle-income economies alongside advanced economies, developing countries still lag across many policy dimensions. For example, managing cross-border data flows created by digital trade transactions raise new regulatory, security and policy issues for developing countries, but currently only 61% of countries in Africa have adopted legislation for the protection of personal data and privacy, only 33 of 54 countries in Africa have formal e-transaction legislation and capacity for data governance, protection, and security is low.

6. The need of the hour is to create the enablers for data for development, particularly in low and lower-middle-income countries. The inclusive, impactful, and responsible use of digital technology, including Big Data, Machine Learning and responsible Artificial Intelligence (AI) requires enabling policy and regulatory ecosystem and adequate financing mechanisms. This cannot be done without creating an effective base of “digital cooperation” and capacity, particularly on data. Without building national capacity to leverage and use data effectively, particularly within developing countries, we will not be able to capture effective national absorption and impact of SDG actions.

7. Decision-makers worldwide are increasingly recognizing that digitalization creates both opportunities and risks, and that there is a need for further exploring how development finance could best contribute to data -related capacity for development. Development finance for digitalization from bilateral and multilateral development finance institutions and finance from private philanthropic institutions increased from US$ 2 billion in 2015 to US$ 6.8 billion in 2019. Channelling some of these funds in data related capacity for development in countries that need it most and face the widest digital divides is an important challenge for multi-stakeholder dialogue around data for development.

8. Similarly, the Public Digital Platforms (PDPs) and Digital Public Infrastructure (DPIs) play a crucial role in enhancing government-citizen engagement by empowering citizens and ensuring ease of governance, business and living. When open, inter-operable, inclusive, and market-friendly PDPs are combined with the active participation of the industry and coordinated policy reforms, innovative and inclusive solutions emerge. These platforms also foster innovation for small businesses by building solutions on top of the existing PDPs. Individual PDPs on identity, payments, and consensual data sharing, when integrated, enable significant value creation through the network effect. While most countries have an identity system, only a few have truly digital systems. This limits their utility and the infrastructure's ability to yield desired results.

9. India’s national digital platforms are founded on four core principles: digital services should be “presence-less” or capable of being used from anywhere, “paperless” or solely reliant on digital records, “cashless” or truly universalizing the access and usage of digital payments, and “consent-based” or allowing movement of data only based on authorization by those to whom it pertains. This approach is based on the realization that digital technologies have the potential to impact all sectors of economy, be it education, health, agriculture or infrastructure. From the success of India’s Digital Inclusion program, it has been established that Governments have a key role to play in catalyzing such digital transformation for inclusive growth. The goals so identified are being further augmented to include bridging the digital gender divide, fostering the 4th Industrial revolution, promoting entrepreneurship, digital government and inclusion. India’s experience of utilizing the power of digital platforms is a case study where developing economies through embracing technologies will be able to leapfrog towards sustainable and inclusive growth.

10. In this regard, India is also working closely with other countries, both bilaterally and multilaterally. In March 2022, India and other countries including Australia, Comoros, Japan, Mauritius, New Zealand, ROK, Singapore, Sri Lanka and EU adopted a joint document on privacy and protection of personal data and strengthening trust in the digital environment.

11. The Report of UN Secretary General’s High-level Panel on Digital Cooperation (June 2019) and the Roadmap to Digital Cooperation (June 2020) have highlighted the importance of ‘common rails’ and ‘guard rails’ in the form of digital public goods for inclusive development based on evidence from success stories around the world.

12. With this background and India’s experience in data for development (D4D) and Digital Public Infrastructure (DPI), as the G20 Presidency this year, India has placed the Digital Transformation, D4D and DPIs as important priorities for G20, with a focus on the need for capacity-building in developing countries, thus, aligning harnessing and data usage with the SDGs.

13. We are working towards deliverables such as G20 Principles on Harnessing Data for Development in the G20 Development Working Group as well as deliverables related to Digital Public Infrastructure in the relevant G20 Working Group tracks. We intend for these efforts to come together at the Leaders level in a coherent narrative for a digital future for the developing world with the view of leaving no one behind.

14. Our G20 Secretariat has been working closely with UNCTAD on these priorities and we thank them for their continued support and expertise in this regard.

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