Telangana threatened by investment hit, raises concern over Data protection bill


The youngest state of India, Telangana raises its concern over the draft of data protection bill. It was tabled by Justice BN Srikrishna Committee. The state is worried about the execution of some clauses, especially localisation which will hamper the investments in the region by isolating Indian startups.

As per a media report by Economic Times, IT minister KT Rama Rao is likely to write a letter to Union minister for electronic and IT Ravi Shankar illustrating his concerns over the bill’s notice requirements. The excessive notice needs and limited processing along with tough cross-border transfer rules can intimidate initiatives taken by startups.

The proposed Data protection bill makes data mirroring or localisation mandatory. At least one copy of all user data has to be stored in India by data fiduciary (organisation collecting or processing data). This will shoot the operating cost of the company.

Telangana’s fear of investment fall

As per a top official quoted by ET, there are some portions in the draft of data protection bill which can raise operation expense and hamper business growth. Data localisation will certainly hike the cost of business operations making foreign investors lose interest.

Telangana, founded in 2014, is the youngest state in India. The state has managed to attract investment worth ₹ 1150 crore, standing at position second in IT exports. It has back-offices of global IT companies like Facebook, Google, and Microsoft.


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