Tech firms to fight India’s new data law

New legislation from India’s government will require the world’s biggest tech companies operating the country to store they customer or user data in India.

Many of these tech companies are planning fight the decision, arguing that it will affect investment, their business model and business that use their platforms. The Indian government in July made a recommendation data which is critical to cyber security.  According to the recommendation citizen’s private information should be processed and stored in India.

Global tech firms have warned that this new law which follows similar laws passed in China could expand compliance and infrastructure expenditure affect future investments and financing strategies. Tech companies are now in joint lobbing to put pressure on the government to reconsider.

US-India Strategic Partnership Forum, the Washington-based Information Technology Industry Council (ITI), London-based techUK, and India’s NASSCOM said that closing cross-border data flow would affect the business of several Indian and global tech companies. The organisations said this in a letter written to the Indian information technology minister.

The Indian government said that the localizing data is needed to allow the government to properly investigate and guard against cyber breaches which are growing across the world.