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DAILY NEWS ANALYSIS
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03 February, 2020
2 Min Read
Syllabus subtopic: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.
Prelims and Mains focus: about the move: Challenges and benefits; about Personal Data Protection (PDP) Bill 2019
News: The Union budget proposal to enable private firms to build data centre parks could help India become a major global data centre, but only with a supportive policy and infrastructure framework.
Background
The budget proposal follows the requirement for data localization for most companies under the Personal Data Protection (PDP) Bill 2019, which is expected to be made into law soon. However, data localization won’t be the only driving principle for the data centre policy, as such parks can generate business worth billions of dollars each year.
Current scenario
Currently there is no large-scale foreign investment in data centres in the country. There is no policy or framework right now on how these global data centres hubs can be created in India. If the government has a clear cut policy around it, India could essentially become a data centre hub for global enterprises.
Data Centre Market: Key figures
Challenges in setting up data centres in India
Benefits of the new policy
Source: Livemint
21 Sep,2021
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Geography And Environment