Mains- Answer writing practice: Data localization
What is data localization and discuss its significance? (200 words)
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. In case of India, most of these data are stored, in a cloud, outside India.
Significance of data localization for India:
“Data is the new oil” provides a backbone to much of the localisation drive. In the home of the largest open Internet market in the world, national wealth creation relies on in-house data storage.
On-shoring global data may champion the cause of domestic innovation, and ability to harness India’s digital economy by creating domestic jobs and skills in data storage and analytics.
Global companies will become more accountable in India. The Indian government is of the view that if data is stored outside the sovereign boundaries of the country, its ability to monitor and regulate online activity is curtailed as the agencies need to rely on mutual legal assistance treaties (MLATs) to obtain access, delaying investigations.
It will ensure national security by providing ease of investigation to India’s law enforcement agencies as the incidences of data breaches and frauds are increasing.
It will also minimize conflict of jurisdiction due to cross border data sharing.
On the reccomendation of B.N. Srikrishna committee the government introduced the data protection bill 2019.
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