Data localisation should form integral part of e-commerce policy: CAIT to Goyal

Traders' body CAIT Wednesday said data localisation provisions should form an integral part of the proposed national e-commerce policy In a communication to Commerce Minister Piyush Goyal, the Confederation of All India Traders (CAIT) said data localisation in the proposed e-commerce policy should be adhered to without any compromise.

The provision of data localisation is fairly spelt out in the draft of an e-commerce policy and, therefore, it should essentially be made an integral part of the e-commerce policy, CAIT Secretary General Praveen Khandelwal said. The government might unveil a national e-commerce policy within 12 months to facilitate achieving holistic growth of the sector, officials said.

Commerce and Industry Minister Piyush Goyal held his second marathon meeting with stakeholders, including e-commerce companies earlier this week. The government, in February, had released the draft national e-commerce policy proposing setting up of a legal and technological framework for restrictions on cross-border data flow and also laid out conditions for businesses regarding collection or processing of sensitive data locally and storing it abroad.

Several foreign e-commerce firms have raised concerns over some points in the draft pertaining to data. An inter-ministerial panel under the Department of Promotion of Industry and Internal Trade will be formed to address stakeholders' grievances on foreign direct investment and draft e-commerce policy.