Remember the Facebook- Cambridge Analytica data scandal which as per reports leaked personal information of over 87 million Facebook users. Post the fiasco, rules, and regulations were changed and chopped across the globe. Data theft is massive and countries don't want the sovereignty of their citizens to be compromised.
In a bid to have the data of their citizens safe, within the country, the European Union launched GDPR policy which restricts companies have the data in local data centres. Now, after the EU, as per a report in Reuters, In India, a panel has been created to create a cloud policy which allows the data of the users in the country itself. The explanation for which is that this will help them investigate and their national security won't be compromised.
As per the details, IT giant Infosys’ co-founder Kris Gopalakrishnan is heading the panel who is working on a draft report which will be released soon. Notably, the Indian government had recently drafted another similar policy called National Digital Communications Policy which said that data sovereignty is their biggest concerns. In the policy, the Indian government aimed to "Establish a comprehensive data protection regime for digital communications that safeguard the privacy, autonomy, and choice of individuals and facilitates India’s effective participation in the global digital economy" by 2022.
Interestingly, apart from EU, even the Chinese government made strict rules for the cloud-based services, one of which was that they forced Apple to keep the iCloud data of Chinese citizen within the local data centres.
Wonder how the US will react to the Indian government working on something similar which restricts the movement of the US companies.