New Delhi has demanded that the European Union lift restrictions on flow of sophisticated outsourcing business to India by designating it as a data secure country. Currently, India is among the countries not considered data secure by the EU, which prevents flow of sensitive data, such as patient information for telemedicine, to India under data protection laws. “Recognition as a data secure country is vital for India to ensure meaningful access in cross border supply,” a government official told ET, adding, “We have made adequate changes in our domestic data protection laws to ensure high security of data that flows in.” The EU Data Protection Directive requires member countries to ban transfer of personal data to a non-EU country unless the nation ensures adequate privacy protection. Lifting of data flow restrictions can boost trade manifold for India’s $100-billion IT-BPO industry, 30% of whose exports are to the European market.
