Analyze the concerns related with the concept of Data localization. What importance does it hold in context of Indian society?

Data localization is the process of�storing data on any device that is physically present within the borders of a specific country where the data was generated. It is the process which tells us how data on a nation�s citizens is collected, processed and stored inside the country.

  • Negative economic impact of data localization
  • It will not protect data to the extent it is supposed to do
  • Having data in India does not mean that domestic companies will be able to access this data
  • Rise in prices of foreign cloud computing services
  • Growth will be restricted�if data cannot be aggregated internationally
  • Lack of infrastructure in India for efficient data collection and management
  • It is a very costly solution for data protection

Importance for India:

  • It will help in maintaining Data privacy and national security
  • It will stop the unregulated and arbitrary use of personal data
  • It will help Indian technology companies to grow
  • It will stop monetization of Indian data outside the country
  • Digital technologies like machine learning (ML), artificial intelligence (AI) and Internet of Things (IoT)�can generate tremendous information out of various data. It will bound the data inside the country
  • Data localisation could boost India�s renewable energy
  • It will create�an opportunity for local data centres all over the country.

There is an urgent need to have�an integrated, long-term strategy for policy creation for data localisation. We can learn from other countries such as China which has recently announced the setting up of an independent data protection authority, while Argentina is currently reforming its privacy legislation.


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