The motive for different governments to store data locally is not only to protect the privacy of their citizens but also to exercise their control on the data.
Nikhil Naren, Assistant Professor, Jindal Global Law School, O.P. Jindal Global University, Sonipat, Haryana, India.
The importance and use of data in today’s technology-driven world is immense. This is understood by both governments and businesses alike. The cross-border data flow has proven to be an important pillar of strength for established as well as growing businesses.
The United Nations Conference on Trade and Development in their Digital Economy Report found that businesses using the internet for global trade have a higher survival rate than those who do not. Therefore, it becomes essential for economies [especially growing economies] to protect data during cross-border transfers. Countries mandate data that are created within their borders to remain stored within its territorial boundaries.
This process of storing data locally is referred to as data localisation. The emphasis on the requirement of data localisation has been pressing under the data protection laws of various countries, however with a varying magnitude.
Published in: The Hindu
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