India should ensure the growth of the digital economy while keeping personal data of citizens secure and protected. No one will innovate in a surveillance-oriented environment or in a place where an individual's personal information is compromised. The ultimate control of data must reside with the individuals who generate it; they should be enabled to use, restrict or monetise it as they wish. Therefore, data protection laws should enable the right kind of innovation - one that is user-centric and privacy protecting.

Correct Option (C)

Both assumptions 1 and 2 are valid based on the provided passage.

• Assumption 1: "Protection of privacy is not just a right, but it has value to the economy." The passage states that India should ensure the growth of the digital economy while keeping personal data secure. It also mentions that individuals should be enabled to "monetise" their data, implying that secure data handling and individual control (aspects of privacy protection) contribute to economic value and growth in the digital sector.

• Assumption 2: "There is a fundamental link between privacy and innovation." The passage explicitly states, "No one will innovate in a surveillance-oriented environment or in a place where an individual's personal information is compromised." This directly establishes a prerequisite relationship between a secure, privacy-respecting environment and the capacity for innovation.

Incorrect Options:

Options (A) "1 only", (B) "2 only", and (D) "Neither 1 nor 2" are incorrect because the passage provides clear support for both assumptions. The text articulates the economic benefits derived from data protection for the digital economy and explicitly links a privacy-centric environment with the fostering of innovation. Therefore, selecting only one assumption or neither would misrepresent the core arguments presented in the passage.