Why this question?

Data is said to be the new currency in the digital age. The article discusses why data localization is important for a country and the issues with data localization policies. Because of the debates sparked by the Sri Krishna committee, such issues have gained prominence.

The question’s main demand

Write about what data localization means and what it entails. The advantages that result from data localization (esp. for internal security and sovereignty of the country). The issues and challenges encountered as a result of data localization policies, both current and proposed.

The commanding phrase

Analyze – When asked to analyse, you must examine the structure or nature of the topic methodically by breaking it down into component parts and presenting them as a whole in a summary.

The answer’s structure:


Explain what data localisation means in the introduction.


Highlight the benefits of data localization, such as security, data as a resource, and socioeconomic benefits. How data localization assists security agencies in gaining control of the flow and scope of data.

Then demonstrate how too much control and government interference may be detrimental to Indian business and investment. Consider the case of China, where businesses are hesitant due to government regulations.

Highlight the Indian policies relating to data localization – Sri Krishna Committee Recommendations The RBI issues guidelines, for example.


Share your thoughts on current data localisation policies and the way forward.

Legacy Editor Changed status to publish November 16, 2022