The United Nations Conference on Trade and Development (UNCTAD) has expressed some support for India’s push on mandatory data localisation that has been contested by developed nations. In a report on digital economy, the UN body observes that governments may decide to restrict data flow for reasons like privacy and protection, security and economic development.
“The only way for developing countries to exercise effective economic ‘ownership’ of and control over the data generated in their territories may be to restrict cross-border flows of important personal and community data,” the report said.The United Nations Conference on Trade and Development has expressed some support for India's push on mandatory data localisation that has been contested by developed nations. In a report on digital economy, the UN body observes that governments may decide to restrict data flow for reasons like privacy and protection, security and economic development.#
This was necessary due to the lack of any global agreement for recognising ownership of community data—once the data leaves the home jurisdiction, the notion of ownership becomes largely meaningless, the report, titled ‘Digital Economy Report 2019’, argued.
India generated the ninth-highest e-commerce sales globally in 2017, by generating a total business of $400 billion. This included goods and services sold online, transactions via platform-based companies like ride-hailing apps and room-sharing platforms. The contribution to GDP was 15 per cent, according to the report.
India is facing huge pressure from countries like the United States and European Union (EU) members to give up its insistence on data localisation.
The UNCTAD report has nullified the argument that data localisation impedes digital trade. The report said that cross-border data flows in themselves may not involve either trade or e-commerce. (DS)
Fibre2Fashion News Desk – India