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The Union Cabinet India has approved amendments to legislations governing the information technology (IT) and communications sectors such as Information Technology Act, to accommodate the changes in the business environment and technology which will address the industry's concerns about data protection and associated privacy laws.

The original purpose of the Information Technology Act, enacted in 2000, was to boost e-commerce and create an enabling environment for e-governance. It also provides a legal framework for transactions carried out using computers and Internet technologies. In the case of the communications sector, an Ordinance will be promulgated to make the mobile industry eligible for funding for providing connectivity in remote and rural areas.

It was recently felt that a fresh look into the technology driven law should be given after concerns were raised regarding inadequacy of legislation pertaining to data protection and privacy.

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