Shift to Localisation:
- Indian companies are capitalising on policy changes to localise both data storage and telecom equipment production.
- Firms are increasingly focusing on manufacturing networking equipment and establishing data storage solutions within India.
Relevance : GS 2(Governance )
Key Players:
- CloudPhotonix: A firm founded by transceiver industry veterans, aiming to replace Chinese-made components in telecom networks by producing locally.
- DigiBoxx: A cloud storage platform offering services with servers and data centres based in India, addressing data localisation demands and regulatory requirements.
Data Localisation and Regulation:
- The Digital Personal Data Protection Act, 2023 allows the possibility of future data localisation in certain sectors.
- The Reserve Bank of India already mandates that payment data of Indians be stored locally.
- Data localisation is being driven by privacy concerns and regulatory compliance, making local storage increasingly sought after by firms, even at higher costs.
Optical Transceiver Market Growth:
- The global optical transceiver market is projected to reach $47.64 billion by 2035, driven by increased demand for networking and telecom equipment.
- Transceivers, a key component in networking, have primarily been imported into India; however, local production is gaining momentum.
Challenges and Opportunities:
- Local production of transceivers and telecom equipment is seen as a response to the push for reducing reliance on foreign, particularly Chinese, technology following geopolitical tensions since 2020.
- CloudPhotonix is targeting the growing need for indigenous networking components, which are crucial for both telecom networks and data centres.
Cost and Security Considerations:
- While local data storage options like DigiBoxx may be more expensive, they are gaining traction due to the need for compliance with regulations and the rising importance of data privacy.
- The emphasis on data security is driving firms to consider local storage solutions to ensure compliance and protect their digital assets.
Industry Support:
- Union Secretary for Electronics and Information Technology, S. Krishnan, welcomed the localisation efforts in the telecom and data storage sectors, noting that these moves are commercially driven and aligned with national interests.
