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Expert committee drafts data protection bill, may mandate localisation of data storage for MNCs

June 18, 2018

An expert committee headed by Justice B. N. Srikrishna has prepared the recommendations on the draft data protection bill and may submit the draft bill to the Ministry of Electronics and Information Technology soon. The Committee was instated in December 2017 to analyse data protection issues in India and make suggestions on data protection principles and to draft a Data Protection Bill.

According to the government, the bill aims to ensure growth of the digital economy while maintaining the safety and privacy of personal data of citizens. The committee’s recommendations come at a time of rising instances of data leakage and misuse of data by enterprises.

As per industry sources, the expert committee is considering mandating data localisation for multinational companies (MNC) such as Google and Facebook. The committee might recommend MNCs to store data of Indians within the country. However, such localisation of data storage will likely be restricted to sensitive personal information.

Although some members of the committee are advocating data localisation, others argue that such a move would adversely impact India’s software industry as well as innovation and economic growth.


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