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United States Businesses Technology

US Senators Urge India To Soften Data Localization Stance (reuters.com) 136

Two U.S. senators have called on Indian Prime Minister Narendra Modi to soften India's stance on data localization, warning that measures requiring it represent "key trade barriers" between the two nations. From a report: In a letter to Modi dated Friday and seen by Reuters, U.S. Senators John Cornyn and Mark Warner -- co-chairs of the Senate's India caucus that comprises over 30 senators -- urged India to instead adopt a "light touch" regulatory framework that would allow data to flow freely across borders. The letter comes as relations between Washington and New Delhi are strained over multiple issues, including an Indo-Russian defense contract, India's new tariffs on electronics and other items, and its moves to buy oil from Iran despite upcoming U.S. sanctions.

Global payments companies including Mastercard, Visa and American Express have been lobbying India's finance ministry and the Reserve Bank of India to relax proposed rules that require all payment data on domestic transactions in India be stored inside the country by October 15. The letter is most likely a last-ditch effort after the RBI told officials at top payment firms this week that the central bank would implement, in full, its data localization directive without extending the deadline, or allowing data to be stored both offshore as well as locally -- a practice known as data mirroring. "We see this (data localization) as a fundamental issue to the further development of digital trade and one that is crucial to our economic partnership," the U.S. senators said in the letter that has not been previously reported.

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US Senators Urge India To Soften Data Localization Stance

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  • Kind of ironic... (Score:4, Insightful)

    by Anonymous Coward on Sunday October 14, 2018 @07:23PM (#57477810)

    US Government once again trying to do the exact opposite of what you'd expect. Why is it other countries recognizes the threat of storing data about their own citizens outside their borders, EXCEPT the "5 eyes"? Could it be India ALSO wants to backdoor encryption which would at least in theory prohibit them from storing OUR data?

    Which would also make it very difficult if not impossible for companies to outsource to India. That isn't such a bad idea.

    • by Anonymous Coward

      Seriously, fuck this. I have a lot of problems with India, mostly because of their tolerance of rampant cheating in education and certifications and the resulting H1-B problems in the US...but this is an area they are spot on correct about.

      More nations, including the US, need to be protective of their own borders, people, and national interests. These US senators are absolutely in the wrong here.

      • Re: (Score:2, Insightful)

        by Anonymous Coward

        More nations, including the US, need to be protective of their own borders, people, and national interests.

        But unless those nations happen to be populated by black/brown people, doing this will get them branded as RACISS!!

        Among the global population whites are a 14% minority. Yet only white nations need diversity. No hard evidence is ever submitted that diversity is a good thing. It is an article of faith. Those who question it are treated as heretics when they are merely asking for substantiation, something celebrated when any other claim is made. It covers many diverse cultures living together and how/w [blogspot.com]

        • I have to agree with you. However distasteful it might be. Fact is India canâ(TM)t diversify even internally, forget external. Citizens from north India find it difficult to settle down in south or fast east India.
  • by bogaboga ( 793279 ) on Sunday October 14, 2018 @07:26PM (#57477818)

    Two U.S. senators have called on Indian Prime Minister Narendra Modi to soften India's stance on data localization...

    Question is, how about nations minding their own business?

    Is that too much to ask?

    • by Anonymous Coward

      Two U.S. senators have called on Indian Prime Minister Narendra Modi to soften India's stance on data localization...

      Question is, how about nations minding their own business?

      Is that too much to ask?

      India's data is India's data, it has *NOTHING* to do with USA.

      India never tells how or what to do with USA's data. US should BUTT OUT of India's rights !!

      • Re: (Score:2, Insightful)

        by Anonymous Coward

        Did you even read the summary?

        Global payments companies including Mastercard, Visa and American Express have been lobbying India's finance ministry and the Reserve Bank of India to relax proposed rules that require all payment data on domestic transactions in India be stored inside the country by October 15.

        That's what this is all about. They don't want to have to setup more infrastructure in India. They are trying to save money.

        India's data is India's data

        This is about money. Not India, specifically.

        • by PPH ( 736903 ) on Sunday October 14, 2018 @08:39PM (#57478028)

          How about India demand reciprocity for FATCA [wikipedia.org] and just start auditing any US financial institutions suspected of holding suspected Indian citizens' financial records? Yes, it's about money. But it's also about foreign institutions and governments digging around in the records of its citizens.

          • by AmiMoJo ( 196126 )

            Indeed, after the US tried to get access to data held in the EU (Ireland specifically) because the parent company was based in the US (Microsoft) countries are tightening up their laws around this sort of thing.

    • by alvinrod ( 889928 ) on Sunday October 14, 2018 @07:38PM (#57477856)
      Close, but I think this is a case of the U.S. minding its own businesses.
      • by rtb61 ( 674572 ) on Sunday October 14, 2018 @11:15PM (#57478404) Homepage

        Well, no, a countries economy is it's business, so they are trying to mind India's economic business, to exploit Indians and favour US corporations, so they are trying to mind someone eles's business against that countries citizens interests.

        US tech companies are going to get kicked out of the rest of the world, because security letters out of a corrupt US government that compromise other countries digital security are entirely too easy. It does not help that moronic US government officials, keep pushing control on other countries against those countries citizens interests, keep demanding dominance, talk about first strikes from cyber warfare to nuclear strikes, routinely interfere with other countries politics in the most horrendous fashion and practically declare war on a made up instance of Russia's interference, yet routinely ignore the UKs, Israel's and even Saudi Arabia's interference (at least that one is coming to and end).

        They are really lucky India politicians just no simply tell them to go fuck themselves publicly, after being fucked over by the UK purposefully splitting the country to create a civil war and keep them divided and weak and the US treating them obedient dogs, well, come to expect NO as the routine answer and yeah, everyone wants to buy Russian S400s to keep the US out because they now NATO supplied anti-air systems will not shot down US aircraft, there are some really interesting back doors in there to find and exploit. I mean, nothing would benefit Russian fighter sales, like US supplied aircraft falling out of the sky when their engines are turned off.

        • Re: (Score:2, Interesting)

          US companies won't be kicked out of anywhere. The world absolutely requires the gigantic US market to sell to. Without it, the global economy would collapse. Even without this, the US is able to use measures from sanctions to bombings to enforce the global rules based liberal order. India would quickly cave to any serious pressure. The neoconservatives in the US government like it this way.
          • The gigantic US market is based on debt and that debt is cheap because everyone in the world has a lot of dollars and nothing to do with it but invest it in US. Why does everyone have so many dollars? Because they need dollars to buy oil so just to be safe they keep their reserves in dollars. If the Khasshogi incident leads to Saudi pricing oil in Yuan, say bye bye to the US market and then noone needs to listen to the US.

            • You're only partially correct. The US market is vast and swallows up anything you throw at it. It's responsible for world prosperity. Without it, many countries would collapse. Who they going to sell their junk to in such quantity? Not Europeans, they protect their important industries. The petrodollar is increasingly irrelevant in a world with shale oil. The US is nearly self sufficient if not already. We simply can do without Middle East oil these days. Let them choke on sand. We've had enough being allie
              • by ghoul ( 157158 )

                Its not that US buys oil in dollars that is important or if whether US even buys oil. Its that other countries like India have to buy Oil in Dollars and hence they need to stockpile dollars and hence they buy up US debt at cheap rates. If India could pay for oil in Rupees they wouldnt be holding billions of US govt debt and then the US would have trouble raising funds to run a deficit and then would have trouble funding a 600 billion military and also New York would no longer be the ventral nervous system o

    • It is the job of the USA to enforce the global rules based liberal order. This means cracking down on violators with sanctions or all the way to bombings. It's basic neoconservativism. People don't know this?
    • Don't ask us, ask the senators.

    • Comment removed based on user account deletion
  • by rsilvergun ( 571051 ) on Sunday October 14, 2018 @07:59PM (#57477908)
    they know damn well how outsourcing works and they'll be damned if you're gonna do it to them. Wanna do business in our country? Then you damn well better hire our people.
  • by Anonymous Coward on Sunday October 14, 2018 @08:01PM (#57477914)

    In the US, you can only buy senators and above.

    In India you can buy any one.

    True democracy.

    • by b0s0z0ku ( 752509 ) on Sunday October 14, 2018 @08:29PM (#57477986)
      Yep: corruption being available to the average person is actually a huge democratizing force. Being able to pay an officious cop to go piss off is better than being excessively fined for minor things like in the US.
      • by ghoul ( 157158 )

        Yeah it doesn't work in the US as we pay our cops too much. Need to get rid of the police unions if we want to have a decent pay 2 play police service.

      • by nasch ( 598556 )

        Are you under the impression that people in the US regularly pay fines for normal activities? Other than those who get frequent traffic or parking tickets, this is not the case. There are occasional (and generally modest) fees for paperwork, but otherwise my impression is most people rarely pay the government in any way other than taxes.

        • Yes. Try bringing a bottle of wine to a park, normal in most civilized countries. Try dealing with parking in a major US city. Cops in other countries tend to give a bit more slack than Americans. Try driving through a rich white area while black, or being a rich white man in a poor black area. Pig harassment city. Try planting a garden instead of grass in some Chichi communities. Yep, a couple in Florida was fined for just that.
          • by nasch ( 598556 )

            OK you have a point. I would categorize the problem of being black in a white neighborhood as a totally different issue than putting up with fines for ordinary behavior, and it's a really serious problem in this country IMO. Being a white man in a poor black area? Are the cops going to hassle you for that? I don't think I've ever heard of such a thing and surely Fox News would make it the top story for weeks on end if it happens.

            For the rest of it, it's a matter of not breaking the rules. Some people l

            • Theres a happy medium between Puritania...I mean the US... and India. Czech Republic, Netherlands, or even Canada are better at not making idiotic rules, to be enforced by bullying scum in uniform.
              • by nasch ( 598556 )

                That sounds about right. Scandinavia comes to mind as well though I like a little more sunlight in winter.

    • No, true capitalism.

      I have no idea why people think democracy and capitalism go hand in hand. If anything, they're polar opposites.

    • The Republican party has been on a decades long campaign to buy out the state legislatures (spearheaded by the Koch Bros) with the goal of calling a Constitutional Convention and amending the Constitution to their liking. I assure you they're not doing this out of the kindness of their hearts.

      And you'd be shocked how much power your State Attorney General and Corporate Commissioner have. They're definitely being bought. Hell, the Sherrif

      In America our oligarchs buy out everybody above dog catcher. N
    • Everything that is called corruption and illegal in India is called Lobbying and perfectly legal in USA. There are no criminals if nothing is a crime.

  • Trump... (Score:3, Informative)

    by Anonymous Coward on Sunday October 14, 2018 @08:02PM (#57477916)

    They have learned India First...... as has much of the world.
    They have also learned no deal is better than a bad deal.

    Oh, they have learned that the USA treats is "friends" pretty much the same as it treats is enemies and that the USA will interfere with local elections, trade, etc , etc.

  • What would happen in the Indian economy if USA-based credit card issuers stopped honoring their cards issued to Indian citizens in that country?

    Perhaps some local outcry to the Indian government, but I doubt that outcry would change things.

    The Indian government might counter the likes of Mastercard and Visa with something like their own Rupee-Card that is good everywhere in India...and nowhere else.

    • It's called Rupay and has been in place for more than 6 years now

      https://en.m.wikipedia.org/wiki/RuPay

    • Why nowhere else? It's actually likely good in one more country than MC and Visa.

  • Americans are lobbying for the right to steal/mine a foreign country's citizens' personal data. India should tell the US to go piss off, and take its Microsoft/Google lobbying home with it.
  • First, we try the carrot:
    " Two U.S. senators have called on Indian Prime Minister Narendra Modi to soften India's stance on data localization "

    if that doesn't produce the expected result, the stick is used:
    " That's a nice H-1B visa program many of your citizens are currently utilizing. Would be a shame if something happened to it. "

    Want to take a guess which way India will go in the end ?

    • by Miles_O'Toole ( 5152533 ) on Sunday October 14, 2018 @10:55PM (#57478366)

      I'm somehow not surprised that as an American, you would get that exactly backwards. The end of that program would mean the best students India just spent time and money educating will no longer have the option of taking all that government-paid expertise and leaving India for the United States with it.

      So yes, by all means threaten to cancel the H-1B program...then watch Indian officials laugh in your face and invite you to kiss their ass.

      • by eth1 ( 94901 )

        I'm somehow not surprised that as an American, you would get that exactly backwards. The end of that program would mean the best students India just spent time and money educating will no longer have the option of taking all that government-paid expertise and leaving India for the United States with it.

        So yes, by all means threaten to cancel the H-1B program...then watch Indian officials laugh in your face and invite you to kiss their ass.

        It would probably be more effective to just implement a similar law in the US. What percentage of the Indian upper/middle class' positions are dependent upon outsourced high-tech jobs that would become illegal to outsource?

      • Actually, H1B does not help America NOR does it help the individual Indians. It helps Indian businesses.
        The best thing that America can do is kill the H1B and grow the greencard visa with another 25K / year, but for tech ppl.
    • It will go: f**k you US, as H-1B visa holders don't pay taxes in India.

      Oh .... you did not know that?

    • by Luckyo ( 1726890 )

      They'll tell US to get fucked, again, just like they did so many times during last half a century?

      Remember, India is the only major state in the world that still hasn't signed up to things like medical patents, which had so much force behind it when it was pushed, even China bent over, and that was when China didn't yet have catastrophic demographics of today.

      • by PPH ( 736903 )

        Remember, India is the only major state in the world that still hasn't signed up to things like

        the Nuclear Non-Proliferation Treaty [wikipedia.org].

        • by ghoul ( 157158 )

          The NPT was a racist treaty. It was created right after India's first nuclear test in 1974 and specifically excluded India from NWS status. No way can we have the brown man have nukes.
          If the NPT had banned nukes for all India would have been the first to sign.

    • by ghoul ( 157158 )

      No H1B means that the work gets completely offshored and the houses Indians are buying in Silicon Valley get bought in Bangalore.

      And the reason Indians use H1B so much is because of the major educated nations , only China and India are barred from the E3 visa. All other countries just use the E3 visa which has no quota limit or waiting periods.

      USA treats India (supposedly a friedn) on par with China (supposedly an adversary).
      Indians are not blind. They make sure to have alternates to USA like Russia and Ira

    • Modi will not be stupid. He will not drop this. He knows that America will simply crack this data in the same way that India helps Russia crack ours.
  • This move by India will make it harder to pump all that information straight to the NSA's ginormous server farm in Utah. After the Snowden and Vault 7 leaks plus the revelation that the US was tapping Angela Merkle's personal cell phone, every country should be treating the US as the hostile foreign power that Russia has been accused of being.

    • by Luckyo ( 1726890 )

      If you think Russia isn't trying to do at least as much, I have bridge on the Moon to sell you.

      As for being allied, that's about alignment of interests first and foremost. And for the time being, US interests remain firmly aligned with those in Western countries. Trump's election didn't change that. The only thing that it changed in equation is the opportunity costs of the others, increasing them, while still keeping them well below the benefits.

      • by Uberbah ( 647458 )

        If you think Russia isn't trying to do at least as much, I have bridge on the Moon to sell you.

        Yeah, you do "own" a bridge on the moon if you believe that baseless tautology. Russia's entire defense budget is a fraction of the last increase to Pentagon spending. They have an economy smaller than austerity-wrecked Spain. The United States has a thousand military bases around the world - can you name one of Russia's outside of Syria or Sevastopol? Little computer tech is made in Russia, and Russia had not

        • by Luckyo ( 1726890 )

          You know, sometimes people tell me that Russian trolls aren't a thing.

          Then I get someone like you, who is trying to pretend that things like budgets are the primary defining features, rather than results. When was the last time you remember US pulling something like Crimea? If anything, we know that Russians have capabilities that even US lacks, such as ability to enact bloodless coups. As we have seen with Ukraine, US led coup went bloody real fast.

          And as for the rest, "illegal wars", etc irrelevant morali

          • by ghoul ( 157158 )

            Lets talk about the outrage over the Saudis kidnapping the Lebanese PM. Who did they learn from? The US kidnapping the Panamian President.

            • by Luckyo ( 1726890 )

              This is the second reply you make to me on this topic where you clearly don't read my original post.

              Let me repeat it.

              >And as for the rest, "illegal wars", etc irrelevant moralizing, vae victus.

              Strong do what they can. Weak suffer what they must. Which is why Russia try to do what US does and more as to not have to suffer as weak do. And US does what it can to stay strong to achieve the same effect. Moralizing doesn't work in geopolitics because of its utter irrelevance. Which is why most people on the pl

              • by ghoul ( 157158 )

                I agree the strong do what they wish and the fact that US prosperity is built on the largess of the Saudis (if Saudis sold oil in anything other than USD the whole US economy comes crashing down), the Saudis will do what they wish and the US will take it like a good boy.

                • by Luckyo ( 1726890 )

                  I've no idea why you think that "US prosperity is built on largess of the Saudis". US prosperity is built on the fact that it's the only major state in the world that doesn't have to invest significant amount of resources into border defence against peer competitors, coupled with the fact that it has more navigable interconnected rivers than entire rest of the world combined.

                  Or did you forget that US became a major power before Saudi Arabian oil was ever discovered?

                  • by ghoul ( 157158 )

                    The US was a middling country till WW1 its primary export being crude oil. After WW1 and 2 US got a lead as the rest of the world was destroyed. Around the same time Saudi oil started coming online. The period of US being a Superpower has coincided with the period of Saudi-US alliance.

          • by Uberbah ( 647458 )

            You know, sometimes people tell me that Russian trolls aren't a thing.

            Probably by the same sort of people that told you that Saddam really didn't have WMD's or planned 911. You know....people that aren't gullible fools. [youtube.com]

            Then I get someone like you, who is trying to pretend that things like budgets are the primary defining features

            Budgets are a measure of capacity and intent. Stephen Hawking may have always wanted to be a professional boxer, but really wasn't in a position to be one. Putin could be evil J

            • by Luckyo ( 1726890 )

              Thank you for successfully reinforcing my point above. I couldn't have done it better myself.

      • by ghoul ( 157158 )

        Russia has nowhere near the scope of the US to be an asshole. The Ruble is not the international reserve currency so all trade goes through New York not Moscow hence the US has opportunity to spy on all world trade transactions. India is demanding that at least domestic trade transactions not be spied on by not having the data go through New York

  • Seriously, they are being smart about this. Most Indian companies KNOW that a number of their own are cracking American systems for the Russians. For this to happen, they need access to either source code (i.e. a software engineer) or more often, handling production sys. admin. Then they leave a nice back door on the foolish American companies computers. Said indian individual walks away with $100K (10x what the Americans pay), and the Russians either walk away with millions or with loads of new intelligen

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