Ojaank IAS Academy

OJAANK IAS ACADEMY

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OJAANK IAS ACADEMY

Data Localization: Necessary and Proportionate

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The value and significance of data in today’s technologically driven world highlight the need for data localization. Data localisation refers to legislative measures that limit data transfers by limiting physical data storage and processing inside the borders of a single jurisdiction.

The requirement for data localization, Data localisation is preferred by governments all over the world. Increases the security of personal data: For example, the European Union’s General Data Protection Regulation (GDPR) requires firms in the EU to keep their data secure within EU borders. Citizens’ privacy should be protected. Control the data for the sake of law enforcement. Fuel their economy.

 Data localisation is crucial in India since it is one of the most powerful markets in terms of data generation and utilisation. The Government of India just withdrew the long-awaited Personal Data Protection (PDP) Bill, 2019, in order to be replaced by a new bill with a “complete framework” and “modern digital privacy regulations.” Due to the rising amount of digital payments in the nation, the Reserve Bank of India (RBI) has also directed that payment system data be kept in India for better monitoring and safety.

In comparison to the ease of conducting business, According to the UNCTAD’s Digital Economy Report, cross-border data flow is a key pillar for both existing and rising firms, and data localisation raises businesses’ operating expenses. Monopoly encourages the removal of small and medium-sized firms from the market, affecting everyday customers who would be denied of the ability to make choices.

Make data security more susceptible, especially in nations with limited IT infrastructure. Misuse by developed nations, Developed countries may deploy powerful data surveillance capabilities, which may contradict the goal of ensuring data security by relocation. The introduction of strong data localisation regulations has increased the possibility of local monitoring.

Distinct nations have diverse types of compliances, posing different sets of issues in different locations and company types. A multi-stakeholder strategy, It can aid in the investigation of not just data localisation but also other concerns such as privacy and governance. Rather than delocalization, data encryption is used. In this day and age of fast technological advancement, governments should adopt alternative data encryption protocols. Glocalization is a technique in which regulations may be harmonised worldwide while keeping local interests in mind. Examine the security of home systems used to store sensitive data.

Data is a corporate enabler, and digitization has proven critical to development and innovation. A compromise must be struck between the sovereignty-based approach for data localisation and the requirement for data independence and autonomy.


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