If the proposed Data Protection bill of Justice Srikrishna committee’s is accepted by the government, companies will have to keep one copy of the personal data within the country. The committee has left the decision in the hands of the government to differentiate which kind of personal data can be as “critical” and only be stored in India.
The Issue of data localization has already created extensive rifts within the country’s businesses in which huge companies like Microsoft, Amazon, Web Service and Google have been aggressively expanding their operation and have witnessed growth in their business. Not only this, companies such as Bharti Airtel and Reliance Jio Infocomm also strongly entering the data center space.
Knock on Startup Ecosystem
The proposed bill will no doubt prove to be ruinous to the country’s start-up and innovation ecosystem because smaller companies and foreign companies are not able to manage the additional cost and compliance burden. There also chances of fallout in the country’s IT industry.
Venkatesh Krishnamurthy, Country Manager India at Business Software Alliance, said “data localisation requirements were contrary to the goals of promoting a Digital India, as global data transfers were critical to cloud computing and data analytics. “BSA recommends that India’s Personal Data Protection Bill avoid imposing undue restrictions on the ability to securely transfer personal data outside of India.”
The latest controversy of the Facebook – Cambridge Analytical on the privacy have made the Indian Government to consider the data localisation issue very seriously. The Bill will provide a strong foundation of protection for Indian’s privacy and without any kind of gap in the system. The proposed bill contains a clause like a store one copy of all personal data within India and creating broad permission for the government use of data and the Independence of the regulator’s adjudicatory authority.
It is a great initiative by the government to think about the importance of Data Protection and taking steps to initiate this bill.