How data localisation limits possibilities for India's startups, consumers

When governments build barriers to protect companies, then consumers suffer, growth stagnates, and the entire country falls behind the rest of the world

India has a long history of drafting laws to protect its companies. In the process, Indians themselves often suffer. That’s precisely what will happen if the government proceeds with plans to force companies doing business in India to store all customer data locally.

The first salvo in this campaign was fired in April, when the Reserve Bank of India ordered companies to store the “the entire data relating to payment systems operated by them … in a system only in India.” The central bank claimed this was necessary to ensure its “unfettered supervisory access” for “better monitoring.” While India isn’t the