- Recently,the government has consulted with the industry representatives to understand the potential need for government-led ‘cloud economic zones’.
- Cloud economic zone are the geographical areas identified for the creation of data storage centres.
- However, Some industry representatives have expressed security concerns with placing sensitive data in restricted economic zones as this will allow for single attacks to threaten the high-risk areas.
- In April 2018,Reserve Bank of India(RBI) had asked payment firms to ensure their data are stored exclusively on local server in India.Further, the draft e-commerce policy has also recommended strict data localisation.
- Indian government is also under increasing pressure from the US government and foreign industry players not to restrict data storage.
- At the G20 summit in Osaka,Indian Prime Minister did not sign onto a declaration of data free flow with trust proposed by Japan and heavily championed by the US.India has also refused to join negotiations about e-commerce at the World Trade Organization.
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