When The Rulebook Writes Its Own Rules: Nasscom Draws A Line In The Sand On IT Amendments

India's tech sector has seen its share of regulatory curveballs, but this one cuts deep. Nasscom isn't just flagging inconvenient rules. It's questioning whether the rules are even legal in the first place, and that's a conversation the government cannot afford to sidestep.

Where The Law Ends And The Rules Begin

Nasscom's central argument is a constitutional one. Rules and amendments are supposed to operationalise a law, not silently expand it. When delegated legislation starts manufacturing obligations that the parent statute, in this case the Information Technology Act, never envisioned, it crosses a line that courts and legal scholars take very seriously. That's precisely what the industry body believes is happening here.

The Quiet Burden On India's Tech Ecosystem

For platforms already juggling data protection compliance, intermediary liability norms, and content moderation obligations, adding legally dubious requirements only deepens the uncertainty. Startups and mid-sized platforms are in the toughest spot, since ambiguous liability standards and rising compliance costs tend to hit smaller players far harder than the tech giants who can afford armies of lawyers.

What Nasscom Is Actually Asking For

The industry body isn't demanding a rollback. It's asking for something far more reasonable: a structured, transparent consultation process that ensures every proposed obligation has a clear, direct anchor in the IT Act. That's not anti-regulation. That's just good governance.

Why This Matters For India's Digital Ambitions

India wants to be a global digital powerhouse. Regulatory overreach, even when unintentional, sends the wrong signal to investors, founders, and foreign technology companies weighing India as an operating base. Getting the rule-making process right is as important as getting the rules right.

Tech Regulation Watch

• Nasscom flags IT rules amendments for creating obligations beyond the IT Act's scope
• Proposed changes risk exposing tech firms to legally ambiguous compliance requirements
• Startups and mid-sized platforms face disproportionate burden from unclear liability norms
• Industry body urges structured consultation before amendments are formally notified
• Core concern centres on delegated legislation overstepping its statutory mandate
• Legal validity, due process, and investor confidence cited as key issues at stake

Sources: Nasscom Statement, Economic Times, Ministry Of Electronics And Information Technology, IT Act 2000 Framework, LiveMint