Calcutta: The adoption of a data protection law in India could open up business opportunities for data recovery and cleaning firms.

The draft data protection bill, which is pending legislative approval, has said that under data localisation, a data fiduciary, defined as a person including state, company or any juristic entity dealing with personal data, is required to store and process data on servers physically present within national boundary.

"When there is more data, there is likelihood that accidents may happen. We can help in recovery of crucial data," said Manoj Dhingra, co-founder and director (domestic business) of Gurgaon-based Stellar Data Recovery.

The company, engaged in the business of data recovery and data erasing software and services, is bullish on its growth prospects as the country adopts regulations similar to those in Europe and other developed countries.

Dhingra added that with corporate houses looking at means to ensure that when assets such as computers and servers are upgraded and old storage media is replaced by new equipment, critical and sensitive data is not lost with it. He said even as data is deleted manually and hard disks are erased, files still reside, which can be later recovered with appropriate software.

Even as the data protection regulations are awaited, the company expect a 25 per cent growth in business in 2018-19. The company is also looking to offer data recovery support in flood hit Kerala.

A study by PWC and Assocham notes that although data localisation helps address concerns over data privacy, security, surveillance and law enforcement to an extent, it increases the burden on businesses by way of increased cost of compliance.