Indian companies feel growing pressure from data localisation rules: Cisco

Bengaluru: Though the country's top executives are generally positive about data privacy laws, there is a growing push to streamline and update data requirements. Tech company Cisco in its study found that 91% of organisations surveyed in India face heightened demand for data localisation, and say data localisation adds cost, complexity, and risk to cross-border service delivery.

The study also points out that in 2026, 99% of organisations report measurable benefits from their privacy investments. Organisations with mature privacy programmes outperform those that treat compliance as a check-the-box exercise. "Even amid the rising complexity of AI, privacy continues to pay off. The organisations at the forefront recognise that privacy is not a cost to absorb, but a capability to leverage," it said.

Data Privacy Day is observed on January 28 to raise awareness and promote privacy and data protection. Cisco, in its study, also said 90% of organisations report their privacy programmes have expanded due to AI, and 43% increased privacy spending in the past year.

Anuj Khurana, Co-founder and CEO of Anaptyss, said data privacy has moved beyond being a compliance checkbox to becoming a core business and risk imperative with direct financial impact. In 2025, the average cost of a data breach has risen to approximately $4.4 million, with financial services institutions facing even higher exposure- often exceeding $5.5-6 million per incident, given the sensitivity of their data and the complexity of their ecosystems, he said.

According to him, responsible data and AI governance is no longer optional — it is foundational to trust, resilience, and sustainable innovation in the financial services ecosystem.

As AI becomes more autonomous, data privacy stops being a compliance checkbox and becomes a design principle. Organisations need to know where data lives, who can act on it, and how decisions are governed — especially as agents begin to operate on their behalf. Privacy, governance, and transparency are what turn AI from a risk into a reliable partner. Without that trust layer, scale simply won’t happen, Maurizio Garavello, SVP for Asia Pacific & Japan, Qlik, said.

The Cisco study also points out that data governance is now seen as a strategic business enabler with 100% of organisations surveyed in India reporting at least one tangible benefit from their privacy initiatives, such as enhanced agility, innovation, and greater customer loyalty. Many organisations are still working to define and establish the governance structures required to manage AI responsibly at scale.