Data centre setting up should not be mandatory: Amitabh Kant

NEW DELHI: Niti Aayog CEO Amitabh Kant, CEO said that decision to set up data center in the country cannot be mandatory and it will be not be conducive for the eco-system. For a conducive policy and regulation on Data Center, we have to work in partnership with industry bodies like IAMAI and the industry."

"I will initiate a dialogue with departments like IT, Telecom and Energy to create the best possible infrastructure for data centers," said Kant while releasing the report, "Make in India:Conducive Policy & Regulatory Environment to Incentivize Data Centre Infrastructure

The IAMAI report highlights the opportunities for India to become a leading player in the global data center market if conducive policy and regulatory frameworks are adopted. The paper highlights key measures to increase innovation and stimulate innovation in what is widely considered to be one of the fastest growing technology segments today.

Dr. Subho Ray, President, IAMAI, commented, "India has the potential to capture a big share in the Global Data Center market", and added that to fully realise this potential, India needs to "address some of the risks and barriers to data center operations in the country today and create the right incentives for businesses to build effective data center infrastructure."

The paper calls for the government to facilitate data-center operations in India through clear policies to facilitate trans-border flow of data and tax SOP/incentives to woo foreign players. At the same time, the paper warns against the dangers of forced localisation of data, adding that the same would reduce competitiveness, harm GDP and harm India's fledgling reputation as an emerging data center hub. The key points made by the paper include:

Policies which are aimed at facilitation of trans-border data flows could have a number of benefits for Indian organisations including economies of scope, increased ICT trade, access to knowledge, outsourcing of support functions enabled by global supply chains, medical data transfers, international growth opportunities, as well as increased productivity and innovation.

In order to realise its potential to become a leader in the global data center market, India needs to address the risks and barriers currently facing the sector including factors such as energy, bandwidth, red tape, sustainability, risk of natural disasters and water resources.

In addition, India needs to evolve a policy and regulatory environment manifesting transparent legislation, a rational framework of strong, industry-driven policies as well as no localisation or ownership limitations. If the same is not forthcoming, India will be unable to capitalise on its strengths in ICT, a growing human resource base in the sector and relatively lower operational costs.

Measures including tax incentives and simplified clearance and licensing norms could be important elements of a pro-innovation policy frameworks that will prove crucial to attracting investments in data centers.

According to the report India's Data Centre Infrastructure Market to be around $ 7 billion by 2020. The Indian data centre infrastructure market is valued at $2.2 billion and is poised to be the second largest market for data center infrastructure within the Asia/Pacific region by 2020.