Can data localization help protect national, economic interests?
Live MintIf data is likened to oil, it’s with good reason. Recent efforts towards creating a robust data protection framework in India focus on one aspect across various parts of the government machinery—data localization. Four key pronouncements in quick succession have hailed data localization as the solution to protect Indian consumers and safeguard India’s national and economic interests. The bad news, however, is that several of the above recommendations, including the draft e-commerce policy, falter on a key ground—they gloss over the negative economic impact of data localization. Given the comparative trade advantages enjoyed by one section of Indian industry in this context, mandating a strict data localization regime could be perceived as a restrictive trade barrier and spur retaliatory measures.