A major concern about the bill is the amendment to the Right to Information Act.
Junior IT minister Rajeev Chandrashekhar defended the government's access to citizens' data as "lawful and legitimate in national security and emergencies" as opposition parties rallied to oppose a new digital rights law that was presented in parliament on Thursday.
"The Digital Personal Data Protection Bill, 2023 was introduced in parliament is a very significant milestone in Prime Minister Narendra Modi ji's vision of Global Standard Cyber Laws for India's $1 trillion digital economy," he said on Twitter.
"Ministry of Information Technology has developed this bill after extensive consultations which I personally led with all stakeholders," Mr Chandrashekhar said, attaching a video explainer.
"This new bill after it is passed by parliament, will protect the rights of ALL citizens, allow innovation economy to expand and permit government's lawful and legitimate access in national security and emergencies like pandemics and earthquakes etc," he wrote.
The clarification came amid criticism from opposition MPs, privacy activists, and various stakeholders who have red-flagged the bill's exemptions for the central government and its agencies, calling them a "sinister move" to "trample" citizens' right to privacy and access to information.
For critics of the bill, one major issue is its allowance for the processing of personal data without consent in nine broad instances, which could have serious implications for the fundamental right to privacy of citizens.
Another major concern is the amendment to the Right to Information Act, 2005. The change exempts personal information from being provided, even if it is related to public activity or a larger public interest, which could be used for refusing transparency information.
Exemptions to the state, which pose risks to the fundamental right to privacy of Indian citizens, and a contentious clause providing broad exemptions from the applicability of some or all provisions for some companies, have also sparked concerns.
Opposition members called for further scrutiny of the bill by a parliamentary panel with Congress MPs Gaurav Gogoi, Manish Tewari, Shashi Tharoor, Adhir Ranjan Chowdhury, Nationalist Congress Party (NCP) MP Supriya Sule, Trinamool Congress's Saugata Roy, and RSP MP NK Premachandran, vehemently opposing the introduction of the legislation, and raising concerns about potential dilutions of the Right to Information Act, 2005, and the autonomy of states.
Hyderabad MP Asaduddin Owaisi said the bill risked turning India into a "surveillance state" by allowing the government the right to access people's data.
Despite the opposition's vociferous objections, the Lok Sabha permitted the bill's introduction via a voice vote. This marks India's second attempt at framing privacy legislation, after three previous versions were considered and ultimately abandoned by the government.
In response to opposition demands for the bill to be referred to a parliamentary panel for further deliberation, IT minister Ashwini Vaishnaw assured the house that the government was ready to engage in a detailed discussion on the bill, including addressing allegations made by opposition MPs.