Average Indian workers may lose out on 11% of his/her monthly salary if the proposed data protection laws come into effect.
A study conducted by Europeans for the international political economy has found that the data protection bill could result in a welfare loss of anywhere between $3.1 billion to $ 14.5 billion.
If economy-wide data localization is enforced. India's projected growth could be affected by about 20%. Investment, exports and long-term growth may drop by 1.9 percent.
"Data localization means the data collected on Indian Territory should be stored within India. A copy of personal data must be stored in India. Data notified as critical personal data by the government can only be processed in India".
India has no separate law to protect personal data in this era of digital services.
Members of the drafting committee like Rama Vedashree, Heads of DCSI, wrote notes of dissent against the bill's provisions for data localization.
The report says that the data protection and localization laws may hurt Indians hard-fought rise up the World Bank's ease of doing business rankings.
"The narrative that localization enhances growth is likely mistaken".
"The assumption that data localization will drive AI growth is mistaken….because many of these data flows is directly or indirectly associated with a commercial transaction, they are essentially traded".
"The price consumers have to pay will increases. I don't think this is something Indians are not used to. Price rise more and more every day it's not like the numbers of billionaires in the country has gone down".
"(Developed) countries were the first kids on the block. And they are sitting on large reserves of data. I don't see why we (Indians) should be bereft on data, why do our boys and girls have to go and sit in California to work on data".
There is speculation that a select committee may deliberate on the bill, in which case it wo n't become law anytime soon.
.
