Bhavish Aggarwal, founder and CEO of Ola, India, which accounts for 20% of the world’s population, generates 20% of the world’s digital data, but only one-tenth of it is stored here, with the remainder sold to us in dollars after being processed by IT giants outside the nation.
Bhavish Aggarwal stated, “Everyone in India pays in dollars. You know, the wider point here, the irony, is that India creates 20% of the world’s digital data because we account for 20% of the global population. You know, due to 4G and Jio, as well as all the map data produced in India. So we generate 20% of the world’s data.
The Ola founder emphasized that India should generate even more data because we are young.
“Actually, as Indians, our strength in the realm of artificial intelligence will be that we have the highest population, and data is what generates intelligence in AI. So, we should provide even more data since we are not only 20% of the world’s population, but we are also youthful.” Bhavish Aggarwal said.
The Ola CEO noted that 90% of the data is transmitted to worldwide data centers held by major technical corporations.
“Only one-tenth of that is held in India. 90% is exported into worldwide data centers, which are primarily held by huge corporations. And they are not. It is converted into AI, taken back to India, and sold to us in dollars,” Bhavish Aggarwal explained.
He also stated that 200 years ago, the East India Company exported cotton, but now it exports data and brings intelligence from overseas.
“Yes. This is exactly what happened 200 years ago with the East India Company. They used to export cotton and import clothing from overseas.
The disparity in data storage between India’s data generation and its local storage capacity can be attributed to several factors:
- Infrastructure Challenges: India faces infrastructure limitations, including inadequate data centers, slow internet speeds, and unreliable power supply. Bhavish Aggarwal said these challenges hinder the establishment of robust local storage facilities.
- Data Privacy and Security Concerns: Storing data locally requires adherence to stringent privacy and security regulations. Companies often prefer to store data in countries with well-established legal frameworks to avoid potential liabilities.
- Cost Considerations: Building and maintaining data centers is expensive. Companies may choose to store data in countries where costs are lower, even if it means processing data generated elsewhere.
- Globalization of Services: Tech giants like Google, Amazon, and Microsoft offer cloud services globally. Their data centers are strategically located to serve a wide customer base. As a result, data generated in India often ends up being stored abroad.
- Data Sovereignty: Balancing data sovereignty (keeping data within national borders) with the benefits of global services is a complex issue. Countries aim to protect their citizens’ data while benefiting from international connectivity.
Data localization, also known as data residency, refers to the practice of storing and processing data within a specific geographic location.
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- Data Security: Governments and businesses often want sensitive data (such as personal information, financial records, and intellectual property) to remain within their borders. By doing so, they enhance data security and reduce the risk of breaches.
- Data Privacy: Data localization ensures that data is subject to specific privacy laws and regulations. For instance, the EU’s General Data Protection Regulation (GDPR) mandates that personal data of EU citizens be stored and processed with appropriate privacy safeguards.
- Economic Considerations: Some countries view data localization as an economic boost. By requiring companies to store and process data locally, they create jobs and stimulate growth.
- National Sovereignty: Governments assert control over citizens’ data by keeping it within their jurisdiction. Data stored abroad may be subject to different laws.
- Improved Performance: Bhavish Aggarwal said keeping data closer to users improves services like online applications and websites, reducing latency.
According to Bhavish Aggarwal, with a large population and growing economy, India is likely driving this production of data through various means, including digital transactions, online activities, and IoT (Internet of Things) devices. This statistic highlights India’s importance in shaping the data-driven future and its potential to shape global trends in industries like technology, finance, and more.
