Cross-Border Data Flows and Digital Trade: Challenges For Indian Law

Abstract

The proliferation of cross-border data flows has become integral to digital trade, yet poses significant regulatory challenges for Indian privacy and competition law frameworks. This paper examines the legal complexities arising from the intersection of data localization requirements under the Digital Personal Data Protection Act, 2023, and competition concerns regarding market dominance by Big Tech platforms. Through analysis of recent Competition Commission of India orders and evolving jurisprudence, this paper identifies critical tensions between data sovereignty imperatives and international trade obligations. The study demonstrates that India's current regulatory approach, while protective of domestic interests, may inadvertently create barriers to digital trade and innovation. This paper proposes a balanced framework that harmonizes privacy protection, competition enforcement, and trade facilitation through risk-based data governance mechanisms. The findings suggest that India must adopt internationally interoperable standards while preserving regulatory autonomy to effectively participate in the global digital economy.