Recently, Indian government was considering regulations that will force all the businesses in India to store their data on the servers inside the country, to avoid tax evasion and other types of fraud.
The concept, known as cloud computing, allows a customer to use distant servers to store and manage data. The service is cost-effective and increasingly becoming popular. However, the Finance Minister has formed a high-level committee to study the Information Technology Act (IT) and suggest amendments that will make it compulsory for firms and individuals to maintain mirror servers in India.
Even though this is not entirely related to the emergence of cloud computing as the article implies and it could have happened in the traditional hosting world too, the movement to cloud has the potential to increase such concerns. It is quite natural that governments will impose inward looking regulations to protect their bases.
I wonder if Google will offer to host the data inside the country as they have a significant presence there. Anyhow, this is a pretty interesting move from the point of view of Indian market.