India’s data localisation bid sees opposition from US-based tech body

NEW DELHI: Information Technology Industry (ITI) Council, a US-based global lobby body for technology companies, said that India’s mandate on data localization could prove detrimental to tech companies in more than one way, and also opposed the government’s bid to force social media apps such as WhatsApp to allow traceability of the origin of certain messages.
“When forced data localization is implemented it can cost companies 30-60 per cent more. A lot of big global companies can probably absorb that but can Indian start-ups afford that? It’s likely that start-ups and small businesses will struggle to absorb the increased costs for data services when data is forced to be stored locally,” said Cody Ankeny, senior manager of policy, ITI at a press briefing.
The Draft Personal Data Protection Bill, 2018, which mandates storing of critical personal user data within the territory of India, or data localization, is likely to be tabled in the winter session of Parliament. Multinational companies have previously also opposed India’s moves on data localisation, saying it will drive up costs and restrict cross border information flow.