Indian government has proposed a legal provision that puts the onus uniformly on companies such as Skype and Google to locate part of their information technology (IT) infrastructure within the country to enable investigative agencies ready access to encrypted data on their servers.
The government also wants these companies to host data of Indian citizen, government organizations on Indian servers (and not move them out of the country), as part of privacy measure.
Consequently, once the law is in place, companies found in violation of data leakage will be deemed as having committed a criminal offence and officials will face prosecution.
..a separate law will either be enacted or included under the proposed privacy Act, whose scope has already been expanded from mere data security to lawful interception, surveillance and illegal commercial communication. there will be provisions under which the service providers will have to nominate a person in India who will be responsible for ensuring data security. If data is leaked outside the country, the nominated person will be prosecuted with sentences ranging from a heavy fine to imprisonment [source]
Couple of years back (2009), Indian government asked Google, Yahoo and Microsoft to host email accounts ending with .IN domains in India based servers and over the last few years, Indian government has been after global companies (like RIM, Google, Yahoo etc) to provide ‘readable data’ to snoop into conversations (and very recently, government said that they want Microsoft, Yahoo, Google Should Screen Content manually).
Aside, it’s important to note that the above mentioned legal provision is a step further to India’s Proposal at UN Assembly,i.e. Government Should takeover Internet.
Like we have said earlier – are we becoming another China, without the Chinese leverage?