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US lobby opposes India’s data localisation bid

Information Technology Industry (ITI) Council, held that India’s mandate on data localization could prove detrimental to tech companies. The US-based global lobby body for technology companies also opposed the government’s bid to force social media apps such as WhatsApp to allow traceability of the origin of certain messages.

“When forced data localization is implemented it can cost companies 30-60 per cent more. A lot of big global companies can probably absorb that but can Indian start-ups afford that? It’s likely that start-ups and small businesses will struggle to absorb the increased costs for data services when data is forced to be stored locally,” opined Cody Ankeny, senior manager of policy, ITI.