Do you think that the country should adopt the policy of comprehensive data localization? Critically examine (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· The JPC report has also recommended formulation of a comprehensive data localisation policy.
· It gives a flavour of retrospectivity to the provision, and has recommended that concrete steps be taken by the government to ensure that a mirror copy of the sensitive personal data (SPD) and critical personal data (CPD) already with foreign entities be mandatorily brought to India timely.
· Under Clause 33, the 2021 Bill specifies that SPD may be transferred outside India subject to fulfilment of certain conditions; however, they will be stored in India itself. CPD can be processed only in India, however, the term still awaits definition.
· The primary argument against data localisation is that it will increase cost of business. According to a report from the Leviathan Security Group, data localisation procedures increase the cost of hosting data by 30-60% at the business level.
· The 2018 Justice Srikrishna Committee Report emphasised harnessing of data and propelling the growth of AI and technology through localisation of data.
· While sectoral regulators like RBI have mandated it, the arguments from both camps deserve consideration. It will be interesting to see how the government accommodates their concerns as well as the industry’s interests.
