Data Localization – benefits & challenges
                     DATA 
LOCALIZATION 
– BENEFITS & 
CHALLENGES
INTRODUCTION
Data Localization refers to the various policies that require 
data pertaining to a nation's citizens to be stored within the 
country's border. It also includes the measures that encumber 
the cross-border movement of data.
Source: byjusexamprep.com
BENEFI
TS
ECONOMIC 
GCompanies use data to analyze customer behaviour and persoRnalizOe theWir prodTuctsH and services accordingly. 
New product development becomes easier when businesses 
understand customer requirements. So data has enormous 
economic importance today.
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NATIONAL SECURITY 
AND EFFECTIVE LAW 
ENFORCEMENT
Access to payment data is crucial while solving crimes. 
However, when data is stored abroad, it isn't easy to gain 
permission to access it. Holding the data locally will give law 
enforcement agencies 24*7 access to it. It will help avoid 
delays in solving crimes.
Source: byjusexamprep.com
DATA SOVEREIGNTY
Localizing data also protects it from foreign surveillance. 
When the foreign country storing data turns hostile, it 
becomes a matter of concern.
Source: byjusexamprep.com
BOOST IN 
EIndMia nePedsL toO seYt uMp muEltiplNe daTta centres for Data 
Localization to be successful. This will give rise to job 
opportunities for locals. Besides, it will also fuel innovation for 
bringing out cost-effective solutions.
Source: byjusexamprep.com
CHALLENGES
HIGH INVESTMENTS
Maintaining multiple local data centres may entail significant 
investments in infrastructure and higher costs for global 
companies, which is why they seem to be up in arms against 
these rules.
Source: www.adda247.com
LACKS 
IInNdia FlackRs efAficienSt infTrastRructuUre foCr daTta cUollecRtion Eand their 
management.
Source: www.adda247.com
PROTECTIONIST 
PTheOse pLrotIecCtioniIst EpolSicies have a spill-over effect on the 
other countries and every country will try to follow suit, making 
it difficult for the companies to manage data.
Source: www.adda247.com
TRADE BARRIER
Strict data localization norms can be seen as a trade barrier 
and lead to retaliatory measures.
Source: www.adda247.com