In a move aimed at bolstering business growth and attracting foreign investments, India’s government is planning to relax data storage rules that have been in place to regulate the handling of personal and sensitive data within the country. The proposed changes signal a significant step forward in India’s efforts to foster a more conducive environment for businesses operating in the digital space.
The existing data storage rules, introduced as part of the Personal Data Protection Bill (PDPB), mandated that companies operating in India, including foreign entities, must store all personal and critical data of Indian citizens on servers physically located within the country. This requirement aimed to ensure data sovereignty and safeguard sensitive information from potential breaches or unauthorized access from foreign jurisdictions.
However, this stringent rule has been a source of concern for many international businesses, as compliance necessitated significant investments in data infrastructure within India, leading to increased operational costs and potential complications for multinational companies.
The move is expected to attract greater foreign direct investment (FDI) and promote India as an attractive destination for businesses, particularly in the technology and digital sectors. By easing compliance requirements, companies can focus more on innovation, expansion, and the delivery of high-quality services to their customers.
