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“Data localization policies, while allowing government agencies to regulate the data efficiently, hinder the growth of the global trade and investments”.  In this context, analyze the pros and cons of data localization for India.

Topic- Challenges to internal security through communication networks, the role of media and social networking sites in internal security challenges

6. “Data localization policies, while allowing government agencies to regulate the data efficiently, hinder the growth of the global trade and investments”.  In this context, analyze the pros and cons of data localization for India. (250 words)

Reference: The Hindu: “Are data localization requirements necessary and proportionate”

Why this question

Data, it is said, is the new capital in the 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 the Sri Krishna committee.

Key demand of the question

Write about the meaning of data localization and what it entails. The benefits that get accrued out of data localization (esp. for internal security and sovereignty of the country). The issues and challenges faced as a result of policies – present and proposed, related to data localization.

Directive word

Analyze – When asked to analyze, you have to examine methodically the structure or nature of the topic by separating it into component parts and presenting 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. How data localization helps security agencies gain control over the flow and extent of data.

Then show how too much control and government interference may not be good for business and investment in India. Point out the case of China, where companies are shying away due to governmental regulations.

Highlight the Indian policies related to data localisation – Recommendations of Sri Krishna Committee. Guidelines are given by RBI etc.

Conclusion –

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