India\u2019s proposed data privacy rules, which bear similarities to the General Data Protection Regulation imposed in Europe, would harm the country\u2019s reputation as a global hub in the digital space, a U.S. lobby group said. \u201cGDPR will not work in India,\u201d Nisha Biswal, president of the U.S.-India Business Council, said in an interview on the sidelines of its annual general meeting in Mumbai. \u201cIndia is a global hub for servicing data. If you are a global hub, then you cannot put rules in place that are disadvantageous.\u201d The draft law requires data localization by companies and that a copy of all personal information be kept on servers within the country. Broadly, it can impact foreign companies such as Apple Inc., Uber Technologies Inc. and Amazon.com Inc. since it will entail stringent penalties for flouting norms and data transfers. The Reserve Bank of India has asked payment service firms to store their transaction data in India. Local media reported on Wednesday that Maharashtra state Chief Minister Devendra Fadnavis met U.S. government officials on data localization and a meeting with the central bank is scheduled in coming days. The rules are being put in place after India\u2019s embrace of smartphones has led to an explosion of sensitive information. Besides, a dearth of regulation has fueled concern among privacy activists and citizens\u2019 groups about potential abuse. But critics say the proposed legislation will impair the operations of the internet giants and startups that are helping usher in a digital economy. Companies such as Alphabet Inc.\u2019s Google and Twitter Inc. say they rely on a global information network to most efficiently run their apps. And it\u2019s one more headache for Facebook in what\u2019s its single largest market by users. Biswal, who was an assistant secretary of state between 2014 to 2017, said the whole process of trying to make Indian officials understand the U.S. view as well as address India\u2019s security concerns will be \u201cevolutionary.\u201d But \u201cIndia has to get it right,\u201d she said, adding such regulatory constraints can hurt two-way trade and investments currently pegged at around $125 billion, according to the USIBC.