On behalf of international NGO the Global Network Initiative (GNI), Copenhagen Economics published a report in March 2014 on the value to India of internet intermediaries.

The report found that online platforms that support user-generated content could increase their contribution to Indian GDP to more than 1.3 percent, provided that the intermediary liability (safe harbour) provisions in the Indian IT Act were reformed and enhanced.

This week, the Supreme Court of India reviewed the IT Act, struck down a section restricting freedom of expression online and strengthened the safe harbour provisions for internet intermediaries.

This landmark judgment acknowledges that the safe harbour regime and its implementation should serve the purpose of removing the liability of online intermediaries without undue burden: intermediaries should not have to evaluate the nature and lawfulness of third party content.

The judgment clarifies that for the intermediary safe harbour to hold, it is sufficient that an intermediary intervenes to block third party content only when instructed via a court order or governmental decision.

In summary, removing legal uncertainty and restrictions that hamper freedom of expression and enterprise online is excellent news for India as a whole: citizen freedom of expression and economic contribution go hand in hand.

Download the report

For further information, please see the GNI’s commentary and the March 24th ruling of the Supreme Court of India.