India will examine concerns raised by foreign technology companies around stringent rules to store data locally, the government said on Tuesday, an issue that has upset firms such as Mastercard and also irked the U.S. government.
The decision to review the rules comes at a time when trade tensions between India and United States have risen. India imposed higher tariffs on some U.S. goods on Sunday, following Washington’s withdrawal of key trade privileges for New Delhi.
On Monday Commerce Minister Piyush Goyal and leaders of technology companies discussed several federal plans in the works to push for more stringent data rules.
The Reserve Bank of India (RBI) last year mandated foreign payment firms must store their payments data only in India to allow supervision.
The central bank representative who attended the meeting “assured the industry representatives that the Reserve Bank of India will look into this”, a statement by the commerce ministry said.