Priyank Kharge, Minister for IT and Biotechnology in Karnataka, emphasised the need for collaborative efforts between state governments and the Union government to develop progressive regulations that protect consumers without stifling industry growth.
During his conversation with Siddharth Zarabi, Editor of Business Today, at the Business Today-India Today AI Conclave 2024, Kharge stressed the importance of creating a regulatory framework that accounts for the global nature of industries like online gaming and cryptocurrency. He highlighted that these sectors often operate across borders, making global regulation essential for ensuring fair practices and minimising risks.
Addressing the issue of online gaming and its potential for addiction, which sometimes leads to tragic incidents, Kharge stressed the need for a global policy to determine who bears the primary responsibility for such issues. “A mobile phone is no longer a luxury; it’s in everyone’s hands, even in my constituency,” he remarked.
On the taxation of the gaming industry, Kharge emphasised the importance of collaboration. “You don’t cut off your nose just because you have a cold,” he said. He pointed out that various types of online games are contributing significantly to government revenue but are burdened with retrospective charges that amount to crores. Kharge mentioned that he had made recommendations to address these issues and was not solely placing the responsibility on the central government.
Criticising the government’s tax policies, Kharge questioned whether they have succeeded in curbing gaming activities. He also noted that it’s now harder to track the servers of online games, making it more difficult to regulate, and potentially exposing players to risks. “We don’t even know if these games are hosted on servers in China or Romania, and people are losing money and lives,” he said.
Kharge argued that challenges exist in every sector, but that doesn’t mean regulation should be stifling. He pointed out that both the gaming and cryptocurrency industries want regulation to ensure fair practices and security.
On the subject of the data protection bill, Kharge criticised the government’s lack of progressive data security laws. “What’s happening to privacy? The Shri Krishna commission’s report was supposed to lead to data privacy legislation, but now it’s in court because there was no consultation with the public or industry. If consultations had taken place, why would the courts be involved?” he asked.
He also critiqued the BJP-led central government, claiming that while it has been in power for a decade, it has failed to deliver effective policies. He dismissed slogans like Make in India, Digital India, and Skilled India, questioning their practical impact.
In response to rising cybercrime, Kharge argued that simply running advertisements in newspapers is not enough to address the issue. Awareness campaigns must reach the grassroots level, as frauds typically affect the most vulnerable. He pointed to Karnataka’s efforts in building skills and raising awareness.
The state government is running large-scale initiatives to train people, including a partnership with Meta to train one lakh teachers and ten lakh students on online safety. Karnataka has also partnered with Cisco to train around 20,000 cyber warriors and is creating regional centres of excellence to understand and combat various types of cybercrime. These initiatives aim to equip both government departments and the private sector with the necessary skills and knowledge to address cyber threats effectively.
Kharge also pointed out that the Centre should work more closely with states, as state ecosystems are often more vibrant and ahead of developments in Delhi. “A more collaborative approach will benefit the nation as a whole,” he said, adding, “Ultimately, what are we all working for?”
Referring to overly restrictive AI regulations in the European Union, Kharge argued that they were too stringent, with companies claiming that such regulations are hurting their growth. In contrast, the US has sector-specific regulations that allow more flexibility. He urged governments worldwide to engage in dialogue, as the internet has eliminated geographical boundaries. “A crime that happens in Singapore or the US affects us too,” he noted.