Data localisation clause may hurt trade pacts between European Union and India, says Ralf Sauer
Ralf Sauer, deputy head of unit – International Data Flows and Protection (Directorate – General for Justice and Consumers), European commission, said that the data protection bill and the clauses over data localisation were discussed during meetings with the ministry of external affairs and ministry of electronics and IT over the last two days.
He added that due to its insistence on data localisation, India could be at a position of “certain risk” since companies which are dependent on Indian market might turn to other markets referring to the country’s huge outsourcing industry.
“From the Indian perspective one of the things one should think about is one of the potential consequences. The EU-India trade relationships are very strong, a lot of data in financial, also business goes from Europe to India and this is not necessarily going to make it easier.”