As part of New Data Bill , the Government is likely to propose the concept of ‘data embassies’ on the lines of diplomatic embassy enjoying immunity from the host country’s jurisdiction. The concerns of foreign data centres about the application of domestic law thus will be mostly addressed. India could become an attractive destination for such data centres.

The data embassy concept is a reciprocal concept. There would be investment from tech infra firms and cloud storage companies. Some countries could shift their entire data processing to India. Data embassies could be set up in GIFT IFSC. Data embassies, would create ‘bubbles of trust’. In future, these corridors of trust could store Indian users data in foreign cloud, as long as they are subject to Indian laws.