5) What do you understand by data localisation? Discuss the importance of data localisation for India and analyze India’s present and proposed policies related to data localisation with respect to their effectiveness?(250 words)

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5) What do you understand by data localisation? Discuss the importance of data localisation for India and analyze India’s present and proposed policies related to data localisation with respect to their effectiveness?(250 words)

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Why this question

Data, it is said, is the new capital in digital age. The article discusses why the issue of data localization is important for a country and the issues with the policies related to data localization. Such issues have become important, because of the debates raised by Srikrishna committee. The article would help us prepare the issue of data localisation which has been an issue of debate.

Key demand of the question

The question expects us to answer the following points

  • The meaning of data localization and what it entails
  • The benefits that get accrued out of data localization
  • The issues and challenges faced as a result of policies – present and proposed, related to data localization. We have to bring out how the provisions related to data localisation be made more effective.

Directive word

Discuss – Here the importance of data localization for a country is to be brought out.

Analyze – When asked to analyze, you  have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.

Structure of the answer

Introduction – In the introduction, explain what is meant by data localisation.

Body

  • Bring out the reasons why data localization is important – security, data as a resource, socio economic benefits. The reasons have to brought out in detail. Mention that reports suggest that cross-border data flows contributed $2.8 trillion to the global economy in 2014, which is expected to touch $11 trillion by 2025. Data has often been referred to as the new oil, an economic resource, that is fuelling the fourth industrial revolution.
  • Thereafter, we need to analyse the policies related to data localisation. Mention that like in many other countries, the political narrative in India also seems to be tilting towards data localisation. This may be gauged from recent developments in the regulatory and policy frameworks on data governance, which may compel companies to set up their data centres within Indian shores.
  • Highlight the indian policies related to data localisation – Goals set in the Draft National Digital Communications Policy 2018, along with various government notifications and guidelines such as Reserve Bank of India’s notification on Payment Data Storage 2018, and the Guidelines for Government Departments for Contractual Terms related to Cloud Storage 2017, show signs of data localisation. Discuss the rationale behind them and also analyze whether they help in furtherance of the objective of data localization. Also mention Srikrishna committee recommendations related to data localisation

Conclusion – Give your view on the present policies related to data localisation and the way forward.