India not in position to accept uninhibited cross border data flows: Piyush Goyal

NEW DELHI: India is not in a position to accept a concept that promotes uninhibited cross border flow of data, commerce and industry minister Piyush Goyal has said. Speaking at the G-20 Trade and Investment Ministers' meet on Tuesday, he said there is a need for policy space for developing countries who still have to finalize laws around digital trade and data, and inhibited flow can further aggravate the digital divide.

Referring to the concept of Data Free Flow with Trust (DFFT), he said it is "grossly inadequate to address our concerns on data access".

DFFT seeks to eliminate restrictions on cross-border transfer of information by electronic means, including personal information, and storing data in foreign servers. The idea was proposed by Japan at the World Economic Forum’s annual meeting last year. It goes against India’s draft national e-commerce policy which has proposed regulating cross border data flows, locating computing facilities within India to ensure job creation and setting up a dedicated ‘data authority’ for issues related to sharing of community data.


“Moreover, in view of the huge digital divide among countries, there is a need for policy space for developing countries who still have to finalize laws around digital trade and data,” Goyal said, emphasising that data is a potent tool for development and equitable access of data is a critical aspect for India.

Explaining that India, like many other developing countries, is still in the phase of preparing a framework for its data protection and e-commerce laws, he said: “Moreover, the existing regulations on which DFFT is sought to be premised, such as uninhibited cross border flow of data, are grossly inadequate to address our concerns on data access. This could further aggravate the digital divide”.

India along with some other G-20 members, did not participate in the Osaka track last year due to its reservations on the issue.

G20 and WTO
Goyal told the grouping that though India stands ready to engage constructively with all G-20 Members to push an agenda that is inclusive and development oriented, G-20 must not seem to be intrusive and driving the agenda for the multilateral trading system at the World Trade Organization (WTO).

“However, we must recognise that WTO is a member-led organization, and the G-20 must not seem to be intrusive and driving the agenda for the multilateral trading system. Rather, our priority should be to correct the asymmetry and imbalance in the existing trading system”, Goyal said, adding that WTO reforms must preserve core values and fundamental principles like non-discrimination, inclusiveness, recognition of including Special and Differential treatment, and consensus based decision making.

He said that India is supportive of the Riyadh Initiative which seeks to provide support to this reform process.

Goyal also suggested the employment intensive services sector to be in the future agenda of the G-20 and also said that it is important to recognise the role of small retailers in sustaining food chains and essential supplies to help sustain lives and economic activity through the Covid-19 pandemic and in future.