In the wake of the Indian government’s new data protection initiative, global tech giants such as Facebook, PayPal, and others are now in a fix.
The new directive mandates that technology companies store and process critical personal data within India’s boundaries.
Since Facebook, Mastercard, and PayPal are already bogged down by such laws in China and Vietnam, the C-level executives fear that this law is going to significantly increase the overall infrastructure and compliance cost.
The global tech leaders are vying to take up the issue with lobby groups in order to coerce New Delhi to rethink.
“The potential fear of restricting cross-border data flow would impact the business models of several Indian as well as global companies,” said the letter addressed to India’s information technology minister.
While the localization of data safeguards personal data from theft and other cybercrimes, it is bound to impact FDI negatively, if implemented.