India's data localisation rules to be a barrier to digital trade: US

'In the absence of any standalone trade secret legislation, there is little recourse for firms in the event of misappropriation of their sensitive information,' the report says

India’s proposed data localisation requirements under which firms need to store data within India “will serve as significant barriers to digital trade” between the two countries, says the US government.

In the recent National Trade Estimate Report on Foreign Trade Barriers, the US says it believes such requirements will act as “market access barriers, especially for smaller firms”. If implemented, the rules will “raise the costs for service suppliers that store and process personal information outside India” by forcing them to construct unnecessary and redundant local data centres here.  

The report, prepared by the United States Trade Representative, was released by Katherine