India’s insistence on data localization is a “major stumbling block" to a planned free trade agreement with the UK, a report tabled in House of Commons said on Friday, signalling continuing differences on cross-border data flow issues.
In the negotiations on the deal, the UK has demanded free cross-border data flow and a ban on data localization. The UK opposes India’s demand for mandatory transfer of source codes, algorithms and encryption keys.
“The UK and India appear to be very far apart on these issues. A major potential stumbling block in this regard has been the Indian government’s pursuit of legislation that could have the effect of requiring data localization," the International Trade Committee report said.
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