Two months after withdrawing a draft data privacy law, the Indian government has published a new proposal that could impact how tech giants such as Facebook and Google process and transfer data in one of the world's most populated nations. 

If approved, the new law would allow companies to transfer some users' data abroad, while giving the federal government powers to exempt state agencies from the law in the interests of national security.

The government will “notify such countries or territories outside India to which a data fiduciary may transfer personal data”, according to the draft law. 

The proposed legislation stipulates that consent is necessary before collecting personal data and establishes harsher penalties for persons and companies that fail to prevent data breaches, including accidental disclosures, sharing, altering or destroying personal data.

The draft also gives powers to the central government to exempt state agencies from provisions...