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Regulatory Burden on Micro-Small and Medium Businesses Due to Data Localisation Policies

Author

Listed:
  • Mahesh Uppal

    (Indian Council for Research on International Economic Relations (ICRIER))

  • Kaushambi Bagchi

    (Indian Council for Research on International Economic Relations (ICRIER))

Abstract

The focus of this paper is on understanding the impact of existing and proposed data localisation measures on microsmall and medium-sized enterprises in India. For the purposes of this paper, we distinguish between MSMEs and startups - the former are typically profit-making entities, while the latter depend on private equity and venture capital funding, and do not necessarily generate profits. The universe of internet-based startups in India is huge and their involvement in the digital economy distinct from that of traditional MSMEs. In the absence of sufficient data to arrive at a quantitative estimate for impacts, this paper adopts an inductive approach, extrapolating from the particular to the general. The impacts are captured by presenting use cases of MSMEs and MSME associations. The impacts have been thematically discussed. We have tried to maintain sectoral diversity in our basket of use cases.

Suggested Citation

  • Mahesh Uppal & Kaushambi Bagchi, 2019. "Regulatory Burden on Micro-Small and Medium Businesses Due to Data Localisation Policies," Indian Council for Research on International Economic Relations (ICRIER) Report 19-r-11, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
    • Handle: RePEc:bdc:report:19-r-11
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