The European Union Justice Department has indicated a joint expert dialogue group needs to be set up in order to move along India's application for "data secure" status.
An Indian Commerce Department official told The Hindu on June 15 that legislative changes could be required to meet the EU's data security requirements, which govern where data belonging to local companies can be hosted.
"The recent communication from the EU Justice Department is worrying for us as it indicates that the EU is not willing to offer us data secure status till we make changes in our systems. This could take a long time as it may also require legislative changes," the Commerce Department official told Business Line.
The EU's Justice Department had asked consultants to assess the data adequacy of the Indian system. While the study has not yet been handed over to India, it is believed to have identified gaps in Indian data laws.