New Delhi, Singapore – December 16, 2021 – The Global Data Alliance commends the Joint Parliamentary Committee (Committee) for its consultative review of the Personal Data Protection Bill 2019. However, we remain concerned that the proposed data localization requirements and data transfer restrictions would ultimately undermine data protection and economic opportunity in India by impeding interoperability with emerging international norms and practices.

Data transfers support global supply chains, innovation, productivity, and environmental responsibility in every sector of the economy, and are critical to enabling companies of all sizes, including micro-, small-, and medium-sized enterprises (MSMEs), to create new jobs, boost efficiency and drive economic development. Data localization requirements could have the unintended consequences of undermining data protection and security as they would hinder the ability to enhance network resiliency and remediate in case of a data breach or outage. The importance of cross-border data transfers is also underscored in economic reports by the UNCTAD, World Bank, OECD and others, which estimate that data localization requirements and data transfer restrictions could reduce market opportunities, productivity and economic growth.

“Mandatory data localization and undue restrictions on cross-border data transfers in the final Bill would not advance data protection goals and would be detrimental to India’s digital revolution.” said Eunice Lim, Senior Manager — Policy, APAC at BSA | The Software Alliance. "The Global Data Alliance strongly supports Prime Minister Modi's vision of a USD 1 trillion digital economy by 2025 and urges India to reconsider its policy proposals so as to improve the prospects of achieving that vision.”