India-UK Trade Pact: Data Localisation Approach

New Delhi, Dec 5 (PTI) The India-UK free trade agreement has provisions for review for cross-border data flows and localisation to keep the commitments aligned with evolving requirements of Digital Personal Data Protection Rules 2025, Parliament was informed on Friday.

In a written reply to the Rajya Sabha, Minister of State for Commerce and Industry Jitin Prasada said that a considered and cautious approach has been taken regarding data-localisation commitments under the framework of the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA).

At present, he said, there are no data-localisation articles or provisions in the CETA signed with the UK.

"However, the agreement has provisions for review for cross-border data flows and data localisation to keep the commitments aligned with evolving requirements of Digital Personal Data Protection Rules 2025, as needed," he said.

He also said India and the UK have agreed that neither would require the transfer of, or access to, the source code of software owned by a person of the other party as a condition for conducting business.

"However, certain carve-outs allow for the disclosure of source code in specific circumstances, such as government procurement, critical infrastructure, requirements of a regulatory or judicial authority of a Party, or a designated conformity assessment body, etc," Prasada said.

The India-UK pact, he said, clearly states that making source code available shall not be construed as negatively affecting the intellectual property rights associated with that source code.

The pact was signed in July this year, and it is expected to come into force next year.