LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS

Read in App
Business News » India News

Data storage within India to create market entry barrier: R Chandrasekhar

Government proposal to mandate storage of certain set of digital data within India is likely to create a market entry barrier and has potential to isolate the country in Internet space, Rajya Sabha MP Rajeev Chandrasekhar said Monday.  

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Data storage within India to create market entry barrier: R Chandrasekhar
Government proposal to mandate storage of certain set of digital data within India is likely to create a market entry barrier. Image source: Pixabay
Written By: PTI
Updated: Tue, Sep 25, 2018
09:01 am
PTI
RELATED NEWS
How industry-grade hosted solutions lull start-ups into false sense of security How industry-grade hosted solutions lull start-ups into false sense of security
Data localisation row in India: This is why global companies oppose proposal Data localisation row in India: This is why global companies oppose proposal
Data protection penalty: Fine up to 4% of erring firms turnover, jail term proposed Data protection penalty: Fine up to 4% of erring firms turnover, jail term proposed

Government proposal to mandate storage of certain set of digital data within India is likely to create a market entry barrier and has potential to isolate the country in Internet space, Rajya Sabha MP Rajeev Chandrasekhar said Monday.

"The draft bill requires that certain categories of data be stored in data centres located within India. These categories will be notified by the Data Protection Authority later. This requirement is likely to create a huge barrier to market entry given the enormous costs," Chandrasekhar said in a letter to Law and IT Minister Ravi Shankar Prasad.

The Rajya Sabha MP said that India at present does not have the physical infrastructure to host large-scale data centre.

"In addition to localisation, the bill requires contractual and inter-group cross-border transfer arrangements be approved by the Authority. This will significantly harm the ease of doing business given the dynamic business environment corporations function in today," Chandrasekhar said.

The Ministry of Electronics and IT (Meity) has floated draft Personal Data Protection Bill, 2018 on the recommendation by a panel chaired by former Supreme Court justice B N Srikrishna.

The panel was set up under the Meity after the apex court judgement ruled that the right to privacy is a fundamental right.

The government in its draft framework for data protection has proposed that entity that processes personal information connected over internet shall ensure the storage of that data, on a server or data centre located in India.

According to the draft proposal, the central government shall notify categories of personal data as critical personal data that shall only be processed in a server or data centre located in India.

"The restriction on cross-border data transfers has the potential to create a case for isolating the Indian market. It is highly likely that countries such as the United States, under the (Donald) Trump administration, will respond kindly, in line with its terse stance on free trade," Chandrasekhar said.

He said that the restrictions appear to be motivated only to facilitate law enforcement and Security agencies access to data and do not lead to any meaningful bolstering of privacy rights while it can be argued that the impact of such restrictions is also far-reaching and disproportionate to the benefits.

Early this month, Google CEO Sundar Pichai too had written to Prasad saying that the "Free flow of data across borders - with a focus on user privacy and security - will encourage startups to innovate and expand globally and encourage global companies to contribute to India's digital economy."

Chandrasekhar also criticised proposal of creating Data Protection Authority saying that as envisioned in the draft bill the authority is likely to be the most powerful regulator in India till date.

"The Authority has sweeping rulemaking powers which make the whole framework subject to the whims of the man on the wheel...The present proposals, therefore, are at the peril of establishing a vague and capricious regulatory regime," he said.

Industry body IAMAI, which represents Google, Facebook, Mobikwik, Paytm, Policy Bazaar etc raised concerns over the definition of data fiduciary that covers any agency dealing with personal data and the multiple consent mechanism suggested under the proposed Bill.

"If each agency is considered as a data fiduciary and has to take consent for using data, there will be numerous consent requirements that will inundate consumers with requests and significantly slow-down functioning of the present seamless digital services," IAMAI said.

The Internet and Mobile Association of India (IAMAI) said that with various stakeholders involved in the handling of data it becomes difficult to identify on whom the liability would lie in case of any lapse in adhering to the bill.

IAMAI said that its members also raised concerns over the penalty mechanisms suggested in the Bill as they suggest flat rates of penalties based on revenues of the fiduciary and do not consider the severity of damage.   

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
data protection
RELATED NEWS
How industry-grade hosted solutions lull start-ups into false sense of security How industry-grade hosted solutions lull start-ups into false sense of security
Data localisation row in India: This is why global companies oppose proposal Data localisation row in India: This is why global companies oppose proposal
Data protection penalty: Fine up to 4% of erring firms turnover, jail term proposed Data protection penalty: Fine up to 4% of erring firms turnover, jail term proposed

LATEST NEWS

Stock Market Outlook with Anil Singhvi: On Nifty, Bank Nifty, Market Guru reveals what will be critical for investors to watch out for

Anand Mahindra to gift THAR-SUV to Natarajan, Mohammed Siraj, Thakur, Washington Sundar, Shubman Gill and Navdeep Saini

Employees Provident Fund (EPF) wage ceiling: PF deduction on Rs 21,000 instead of Rs 15,000 likely soon

Climate change chalenges! Boeing to deliver commercial planes on sustainable fuels by 2030

7th Pay Commission: Don't Miss! What government employees should know about salary hike, DA release, arrears clearance

Microsoft roll back Xbox Live Gold price hike after backlash from gaming community

Republic Day 2021: Full-dress rehearsal today, these metro stations to remain closed till noon; check Delhi Police traffic advisory here

MahaDAO's ARTH goes live in India; over 5000 investors foresee a solution to currency depreciation

Traffic violations fine: NEVER EVER drive on wrong side of the road in this city, you may lose your driving licence permanently

Just 42 pct girls allowed access to mobile phone for less than an hour a day: Survey

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved