PRELIMS SNIPPETS – November 16th 2022

Data Localisation

Why in News?

  • The United Nations Conference on Trade and Development (UNCTAD) has recently highlighted the importance of Data Localisation for economies to protect data during cross-border transfers.


  • Data Localisation is storing critical as well as non-critical data within the territorial boundaries of the country.
  • The most important aspect of data localisation is having control over our own data which makes the country more resistant to issues around privacy, information leaks, identity thefts, security etc.
  • It has also helped the countries develop their own startups, evolve locally and also thrive in their own language.
  • The UNCTAD in its report found that businesses using the internet for global trade have a higher survival rate than those who do not.
  • There is a need to have an integrated long-term strategy for policy creation for data localisation.
  • 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.
  • Access to data by Indian law agencies, in case of a breach or threat, cannot be dependent on the whims and fancies, nor on lengthy legal processes of another nation that hosts data generated in India.
  • According to the sources, lack of law enforcement is causing issues in the recent Free Trade Agreement (FTA) between India and UK.
  • All the players involved, including banks, telecom companies, financial service providers, technology platforms, social media platforms, e-commerce companies and the government, need to play a responsible role in ensuring innocent citizens do not undergo the trauma of suffering losses.
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