Data Localisation: Advantages and Challenges_00.1
UPSC Exam   »   Data Localisation: Advantages and Challenges

Data Localisation: Advantages and Challenges

 

Relevance

  • GS 3: Awareness in the fields of IT, Space, Computers.

 

Context

  • Visa becomes the first global financial services company to comply with RBI’s data localisation mandate.

 

Data Localisation: What is it?

  • Data localisation is the act of storing data on any device physically present within the borders of a country. As of now, most of these data are stored, in a cloud, outside India.

 

Developments around the world

  • Data localization comes in various forms. Where some countries enact blanket bans on data transfers, many are sector specific, covering personal, health, accounting, tax, financial, mapping, government, telecommunications, e-commerce and online publishing data.
  • According to European Union GDPR (General Data Protection Regulation), companies have to keep the data secure inside the EU and if the data is to be transferred outside of the EU, then it can only be transferred to countries that have signed up to equivalent privacy protection.
  • While Australia mandates data localisation for health sectors, Canada and Russia mandates the same for all personal data.
  • Similarly, while China mandates data localisation for personal, business and financial data, South Korea does it for geospatial and map data.

 

Data Localisation: Advantages and Challenges_40.1

Get free video for UPSC CSE preparation and make your dream of becoming an IAS/IPS/IRS a reality

 

Developments in India

  • Srikrishna Committee recommended that at least one copy of personal data will be stored within the Indian territory. Moreover, critical personal data will be stored in India only.
  • Data Protection Bill 2018 has a provision where the Central Government shall notify the critical personal data that shall only be processed in a date centre located in India.
  • Draft National E-Commerce Policy recommends that 2-year sunset period will be given to the companies to adjust with the data localisation.

 

Advantages

  • Protection of personal and financial information of the country’s citizens and residents from foreign surveillance and giving local governments and regulators the jurisdiction to call for the data when required.
  • This aspect has gained importance after a spate of lynching across states in India was linked to WhatsApp rumour.
  • Facebook sharing user data with Cambridge Analytica, which is alleged to have influenced voting outcomes.
  • It is essential for national security. Storing of data locally is expected to help law-enforcement agencies to access information that is needed for the detection of a crime or to gather evidence.
  • Where data is not localised, the agencies need to rely on mutual legal assistance treaties (MLATs) to obtain access, delaying investigations.
  • On-shoring global data could also create domestic jobs and skills in data storage and analytics.

 

Digital Rupee: India’s National Digital Currency

 

Challenges

  • Maintaining multiple local data centres may entail significant investments in infrastructure and higher costs for global companies, which is why they seem to be up in arms against these rules.
  • India lacks efficient infrastructure for data collection and their management.
  • These protectionist policies have a spill-over effect on the other countries and every country will try to follow suit, making it difficult for the companies to manage data.
  • The geographical location of data centres provides no guarantee that the encryption keys will also be placed within the national boundaries.
  • Strict data localisation norms can be seen as a trade barrier and lead to retaliatory measures.

 

 

Way forward

  • We need an integrated, long-term strategy for data localisation policies.
  • Data localisation should integrate a range of perspectives—social, political and economic.
  • An optimal regulatory and legislative framework need to be developed for data processors in the country.
  • Adequate attention needs to be given to the interests of India’s Information Technology enabled Services (ITeS) and Business Process Outsourcing (BPO) industries, which are thriving on cross border data flow.

Sharing is caring!

×

Download success!

Thanks for downloading the guide. For similar guides, free study material, quizzes, videos and job alerts you can download the Adda247 app from play store.

Thank You, Your details have been submitted we will get back to you.

Leave a comment

Your email address will not be published. Required fields are marked *

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Login

OR

Forgot Password?

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Sign Up

OR
Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Forgot Password

Enter the email address associated with your account, and we'll email you an OTP to verify it's you.


Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Enter OTP

Please enter the OTP sent to
/6


Did not recive OTP?

Resend in 60s

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Change Password



Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Almost there

Please enter your phone no. to proceed
+91

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Enter OTP

Please enter the OTP sent to Edit Number


Did not recive OTP?

Resend 60

By skipping this step you will not recieve any free content avalaible on adda247, also you will miss onto notification and job alerts

Are you sure you want to skip this step?

By skipping this step you will not recieve any free content avalaible on adda247, also you will miss onto notification and job alerts

Are you sure you want to skip this step?