Importance of Online Data Localization in India
Data localization is the act of storing data on any device that is physically present within the borders of a specific country where the data was generated. The framework for protection of personal data in India is contained within the Personal Data Protection Bill, 2018 as well as the Data Protection Committee’s Report (released on 27 July 2018). The benefits of Data Localization include:
(1) Reduced Costs: Availability of data is very easy and reduction in time and costs due to interaction and co-ordination with foreign entities to acquire data, would also lead to a direct reduction in costs involved in the enforcement of Indian Laws.
(2) Reduced Security Risk: Cross border transfers involve security risk due to the use of fiber optic cable which make networks vulnerable to various attacks. Localization can reduced this rick.
(3) Boost to Digital Infrastructure: Data collection would lead to a huge boost in the nation’s Digital Infrastructure systems which would further lead us to see innovations in artificial intelligence as well.
(4) Sovereignty: Data localization would disable any foreign entity to keep surveillance over India’s affairs.
The personal data protection bill governs the processing of personal data by: (1) government, (2) companies incorporated in India, and (3) foreign companies dealing with personal data of individuals in India. Personal data is data which pertains to characteristics, traits or attributes of identity, which can be used to identify an individual. The bill categorizes certain personal data as sensitive personal data. This includes financial data, biometric data, caste, religious or political beliefs, or any other category of data specified by the government, in consultation with the authority and the concerned sectoral regulator.
“India’s data must be controlled and owned by Indian people and not by corporate’s, especially global corporations”.
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