Indian govt asks Amazon to (urgently) set up data servers in India

“What concerns us is the unbridled migration of data to overseas servers without consent of Indians,” IT and communication minister, Prasad said.
“Localisation of servers in India and having an element of consent of Indians is important for usage (analytics) of the data.” (source)

Of course, this will increase the cost for Amazon – but isn’t this a fair ask? And why are we stopping with Amazon – every global consumer company which holds / transacts/ tracks data should have servers in India (including the mobile firms).
But then, this will also make it difficult to do business in India – especially for new age global startups.
How would you solve this paradox? That is, of being competitive vs protecting data.

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