India’s demand on data localization is a “major stumbling block” to a proposed free trade agreement with the UK, according to a report presented in the House of Commons on Friday, reflecting ongoing disagreements about problems with cross-border data movement.
The UK has urged unrestricted cross-border data flow and a restriction on data localization in the negotiations over the agreement. India’s demand for the forced surrender of source codes, algorithms, and encryption keys is rejected by the UK.
“These concerns seem to be extremely diametrically opposed between the UK and India. The Indian government’s efforts to enact legislation that would have the effect of forcing data localisation have been a significant potential roadblock in this area, according to the International Trade Committee study.
It has yet to be determined how far The Digital Data Protection Bill, the most recent draught of Indian data legislation, will make it difficult for the UK to pursue its offensive interests in this area, according to the committee.
