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Data Localisation & Indian SMEs & Startups


Data Localisation – The Global data protection wave is approaching the Indian shores also. Completely different steps within the previous few months indicate that the country is adopting the necessary local process and storing of crucial personal information.

As India is keen on introducing data protection laws, it comes as a no surprise that the government is trying to promote data localization and contour crucial areas like digital payments and e-commerce, among others. The need for localization comes at some extent once there’s a worldwide discussion happening around the world security and how firms store user data. whereas the necessity of for data localization has been there for an extended time, it got intense after the RBI suggested payment system operators within the country to store client data locally to forestall attainable foreign surveillance.

Kris Gopalakrishnan, the co-founder of Infosys, is heading a panel that might soon release a policy recommending to mandate on data localization within the country. Later in September, it’s already caught the eye of the tech community from across the world, because it may prove to be an enormous blow to tech giants like Amazon and Microsoft, who are providing these services for Indian firms for a while now.

Paytm has to return up with its own build In India version of the AI cloud for storing data locally. It’s launched a cloud computing platform in partnership with Alibaba that is aimed at developers, startups, and enterprises. The Paytm AI Cloud processes and stores all client data locally in servers placed in India whereas conforming to the safety and privacy standards.

Impact On global Players & AI Development:

With this move, global cloud service suppliers like Google, Amazon, and Microsoft are drastically affected, due to their vital presence within the country. While most specialists believe that there would be no long-run negative impact on the large cloud players, Mozilla in a very blog post had written that an information localization mandate would undermine user security, damage the expansion and competitiveness of Indian trade.
Apart from the impact on local and global cloud providers, the larger impact of restricted cloud market may be seen on alternative firms, particularly those startups that rely on client datasets to power their AI models. Data-driven technologies like AI and therefore the internet of things may notice it hard to go with data localization needs.

Therefore, Having local control of data has its own benefits and challenges. Despite the shortfalls, it might nevertheless offer Indian firms and government an simple access to data, if it’s placed locally.