India Govt To Relax Data Storage Rules in Boost For Business By CIOTechOutlook Team

India Govt To Relax Data Storage Rules in Boost For Business

CIOTechOutlook Team | Tuesday, 18 July 2023, 08:44 IST

India intends to further loosen its stance on data storage, processing, and transfer outside of its borders, which will be beneficial for both Indian businesses looking to expand internationally and large corporations like Alphabet Inc.'s Google. People with knowledge of the situation who asked not to be identified because the law has not yet been made public stated that a draft of a new privacy bill allows corporations to export data to any countries other from those that are specifically named by New Delhi. Contrarily, a prior draft made public in November limited the export of data to all locations outside those specified by the government.

India's government, like governments everywhere else, is attempting to strike a balance between the demands of industry and the privacy rights of individual citizens. With 1.4 billion people, the nation is a desirable growth opportunity for international internet firms, but businesses frequently conflict with government agencies tasked with safeguarding the interests of consumers and supporting domestic businesses.

According to the people, the Digital Personal Data Protection Bill 2023 mandates that businesses obtain consent before collecting personal data and forbids them from using it for any reasons other than those specified in the parties' agreement. They claimed that this meant businesses couldn't anonymize personal data and use it for things like AI models.

The measure expands the amount of control sector-specific regulators, including the central bank, have on the data policies governing the companies they regulate. Companies can export and store data as needed for mergers, acquisitions, or spinoffs. A request for comment was not answered by the Indian ministry of technology. The updated measure was given the go light by Prime Minister Narendra Modi's cabinet earlier this month, and it will now be submitted to the parliament for consideration during a session that starts on July 20.