{"id":50060,"date":"2019-07-17T16:15:04","date_gmt":"2019-07-17T10:45:04","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=50060"},"modified":"2019-07-17T16:21:31","modified_gmt":"2019-07-17T10:51:31","slug":"answered-governments-existing-technology-vision-for-the-digital-economy-hinges-on-data-localisation-to-solve-multiple-problems-unfortunately-it-misses-a-number-of-issues-and-hidd","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-governments-existing-technology-vision-for-the-digital-economy-hinges-on-data-localisation-to-solve-multiple-problems-unfortunately-it-misses-a-number-of-issues-and-hidd\/","title":{"rendered":"[Answered] \u201cGovernment\u2019s existing technology vision for the digital economy, hinges on data localisation to solve multiple problems, unfortunately it misses a number of issues and hidden costs\u201d. Critically examine. Suggest some measures to resolve these issues."},"content":{"rendered":"\n<table class=\"wp-block-table\"><tbody><tr><td><strong>Demand of the question<\/strong> <br><strong>Introduction. <\/strong>Contextual introduction. <br><strong>Body. <\/strong>Need of data localisation and various issues related to it. <br><strong>Conclusion. <\/strong>Way forward and solution. <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p>Data localisation means collection, and storage nations&#8217; citizens or residents data inside the country. It enables governments to secure privacy of their citizens and secure their rights. India has recently promulgated a number of <strong>data localisation requirements <\/strong>that need companies to localise all data processing related to payment transactions in India. This is in line with the government\u2019s existing technology vision for the <strong>digital economy.<\/strong><\/p>\n\n\n\n<p><strong>Why data localisation is\nnecessary for India?<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Data localisation is necessary to <strong>secure\ncitizen\u2019s data and their privacy<\/strong>. It will not only enhance nation\u2019s\nsecurity but would also lead to economic and technological advancement of the\ncountry.<\/li><li>Indian users\u2019 data is stored outside the country. This\ncould lead to a situation of <strong>conflict of jurisdiction<\/strong> in case of any\ndispute. Thus Data localisation would help Indian judiciary to deal with\nsituation of conflict according to Data norms.<\/li><li>Digital technologies like machine learning (ML),\nartificial intelligence (AI) and Internet of Things (IoT) can generate\ntremendous value out of various data. Data localisation would enable India to <strong>en-cash\nupon the data generated<\/strong> through these technologies.<\/li><li>This will benefit India by <strong>creating a local\necosystem<\/strong> of data and data centres. It will provide jobs and livelihood to\nmany.<\/li><li>International companies by entering Indian market <strong>will\ncarry technology and experience <\/strong>with it. Data localisation is an\nopportunity for Indian technology companies to grow. <\/li><li>It will enhance <strong>cyber security framework <\/strong>of\nIndia by providing valuable inputs and experience.<\/li><\/ol>\n\n\n\n<p><strong>Various issues India facing\nwrt digital regulation:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Anti-competition<\/strong>: Foreign companies have an <strong>advantage<\/strong> over all other Indian firms. They have large social base which provide them with an edge over Indian companies. E.g. Facebook, WhatsApp have a large social media and messaging base that enable them to influence their users. Providing <strong>a level playing field <\/strong>to the local firms is difficult.<\/li><li><strong>Privacy Concerns<\/strong>: The larger concern is related to the of privacy of the citizens. Even if companies agrees to set up data localisation in India, companies will still have access to data on all transactions, which <strong>could be misused<\/strong>. E.g Facebook can use its social media data linking it with transactions made through WhatsApp.<\/li><li><strong>Short term solution:<\/strong> Having data in India does not mean that domestic companies will be able to access this data. Localisation may help in the growth of the local data centres and the cloud computing industry in India, but such an approach is a short term measure as major of data will be with outside companies.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Against e-commerce sector<\/strong>: Mandating localisation will be <strong>against\ngovernment policy to promote e-commerce<\/strong>. Further mandating a strict data localisation\nregime could be perceived as a <strong>trade barrier<\/strong> and will adversely impact\nIndia\u2019s economic growth.<\/li><li><strong>Would impact industry<\/strong>: Data localisation will lead to rise in prices of\nforeign company services. They may increase cost of their services like cloud\ncomputing. It will impact industries as well as start-ups relying on these\nservices.<\/li><li><strong>Burden on judiciary-<\/strong> Due to Data localisation conflicts will increase\nleading to litigations. This will put extra burden on judiciary which is\nalready overburdened.<\/li><\/ul>\n\n\n\n<p><strong>What should be done?<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>We need a set of clear guidelines on digital transactions,\nalong with requirements for storing and processing payments. Elaborate and\nclear definitions would make rules simpler and will help in better\nimplementation.<\/li><li>Detailed study and analysis is needed on how\ndigital technologies will impact different sectors, especially finance and\npayments. Efforts should be made to promote competition, enabling local firms.\nAlso studies on protecting consumer data and promoting data sovereignty is\nneeded.<\/li><li>Domestic enterprises should be encouraged and supported\nto use the local market to emerge as global champions. Local firms will need\nmuch more support and incentives in the digital payments market. <\/li><li>There must be clarity on how citizens\u2019 data will be\nstored, and for how long. This will remove confusions and will also aware\ncitizens about their rights. Any violation of rule can help Indian firms and\ncitizens to sue the companies.<\/li><li>There is an urgent need to have an integrated,\nlong-term strategy for policy creation for data localisation. Data localisation\nneeds to integrate a wide range of social, political and economic perspectives.<\/li><li>Adequate infrastructure in terms of energy, real\nestate, and internet connectivity also need to be made available for India to\nbecome a global hub for data centres.<\/li><\/ol>\n\n\n\n<p>India\u2019s digital vision talks about data sovereignty and giving domestic firms an advantage. With the right policy incentives, local firms could capture large shares of the digital payments market to become e-commerce players on a global scale. These are crucial to guarantee the rights of all Indians as we move from a cash-based to a cashless economy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Demand of the question Introduction. Contextual introduction. Body. Need of data localisation and various issues related to it. Conclusion. Way forward and solution. Data localisation means collection, and storage nations&#8217; citizens or residents data inside the country. It enables governments to secure privacy of their citizens and secure their rights. India has recently promulgated a&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/answered-governments-existing-technology-vision-for-the-digital-economy-hinges-on-data-localisation-to-solve-multiple-problems-unfortunately-it-misses-a-number-of-issues-and-hidd\/\">Continue reading <span class=\"screen-reader-text\">[Answered] \u201cGovernment\u2019s existing technology vision for the digital economy, hinges on data localisation to solve multiple problems, unfortunately it misses a number of issues and hidden costs\u201d. Critically examine. Suggest some measures to resolve these issues.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49132,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-50060","page","type-page","status-publish","has-post-thumbnail","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/50060","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=50060"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/50060\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49132"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=50060"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}