/bmi/media/media_files/2025/01/17/wiOjImcalWY01kiryaAa.jpg)
Rajesh Magow
New Delhi: Customers today want to be served with personalized ads but dislike it when advertisements become extremely precise, as it feels intrusive. With the DPDP Act soon to be implemented, marketers will find it challenging to serve personalized ads, as the act includes the right to data erasure.
Esteemed guests gathered at the India Digital Summit to discuss the drivers of digital innovation in India. Among them was Rajesh Magow, Co-founder & Group CEO of MakeMyTrip, who addressed the DPDP Act and its potential impact on personalized advertising, raising the question of whether its implementation should have been delayed to allow the digital ad space to mature further.
Magow addressed this by saying, "At a fundamental level, the core issue receiving attention and the need to address it are not wrong. If we encounter a pressing issue, we must address it. However, we should approach it with a deep understanding of the issue and by carefully considering the right kind of solution.
The best approach is through consultation with all industry stakeholders, addressing their concerns to arrive at the most effective solution. When we engage in open dialogue and value each other's perspectives, we invariably arrive at the optimal outcome."
Diving deeper, a key question that emerged during the discussion was whether the DPDP Act could act as a barrier to entry for new players and potentially lead to anti-competitive practices.
Magow offered his perspective, stating, "There may be a need for enhancements or upgrades to address potential anti-competitive practices. Historically, we had the MRTP Act (Monopolistic and Restrictive Trade Practices Act), and now we have the Competition Law of India. Our current efforts might be seen as another form of such legislation. Instead of focusing excessively on the form, we should remain focused on the core issue we are trying to address. Anti-competitive activity could occur in any sector or region. If the existing law can be upgraded to effectively address the issue, that should be the preferred course of action. If further reforms or amendments are necessary, they should always be considered in light of the core issue."
He further emphasized the importance of timing, stating, "In rapidly evolving industries, it's crucial to either revisit regulations frequently or allow sufficient time for the industry to mature before implementing significant changes. The core issue must be addressed without digressing from it."
Thanks to low data prices in the country, the Indian digital economy is booming, businesses are flourishing, and customers are finding value in digital products as the barriers to entry for new businesses have been lowered.
Calling India a hub of innovation, Magow attributed the advancements in the digital space to the low cost of data in the country.
However, the inclusivity of this growth is crucial. India still has approximately 250 million people who primarily use feature phones. These individuals may not be able to fully benefit from the digital sphere to the same extent as smartphone users. Thus, a critical question arises: How can we make digital growth more inclusive?
Responding to this query, Magow stated, "The initial beneficiaries of India's tech revolution and digital evolution were primarily urban and semi-urban populations. However, the next wave of growth is expected to significantly benefit rural India. This optimism stems from the strong foundation laid by initiatives like the UID program, launched in 2010 by Nandan Nilekani, which provides a unique identification number for every individual.
This unique ID is crucial for leveraging technology and ensuring that benefits reach rural areas effectively. Another significant foundation is the UPI system, which democratizes payments and enables peer-to-peer transfers. Linking Aadhaar cards to bank accounts ensures that benefits reach the intended recipients without leakage, significantly benefiting rural economies."
"I am not overly concerned about the device itself," said Magow, acknowledging that while 250 million people may not use smartphones, the government and private sector are actively working to address this. He noted that some features like UPI are already available on feature phones.
"By 2030, India is projected to have 1 billion smartphones, presenting a massive opportunity for digital businesses to expand their services. The COVID-19 pandemic has accelerated the shift to remote work, providing significant advantages in terms of access to the right technology, tools, and information, even in rural areas," he further added.
Later in the session, Magow was asked, "While the government of India has consistently played a significant role in facilitating the digital ecosystem, what further steps can the government take to propel Digital India forward?"
In response, he stated, "To be honest, the government has already undertaken numerous initiatives. The digitization drive in India is spearheaded from the highest levels, with a strong focus on the startup community and the initiation of various startup programs that have gained significant visibility. I believe it is crucial to maintain this momentum. We do not necessarily need to explore entirely new areas as the current focus is already on the right ones. The key is for all stakeholders to sustain this momentum.
The outlook for the Indian economy is positive, and what we need now is to maintain our focus and momentum. We must continue executing our plans, investing in the right areas, and not cutting back on investments. Technology evolves rapidly, and in the private sector, we are very aware of this. We keep looking ahead to embrace new technology and determine the necessary investments and resources. So, I would say, let's just keep the momentum going.”
In conclusion, Magow said he views smartphones and inexpensive data to drive digital innovation in the country and feels that consultation is the way to go when it comes to the DPDP Act.