A data privacy watchdog is to be set up in India to oversee the country's IT industry amidst international concerns about the security of outsourced customer records and data.

India does not have any data protection law equivalent to that in the UK and there have been recent cases of information being leaked from call centres to criminals who have then blackmailed the companies involved.

The Data Security Council of India (DSCI) is being set up by Indian IT industry group Nasscom.

'This will be an independent organisation at arm's length from Nasscom,' said Shyamal Ghosh, chairman of the DSCI.

The organisation will develop security policies and offer certification, but will have no legal powers other than referring cases to the police.

Nasscom has also set up the National Skills Registry (NSR), a database of verified employees that includes biometric details, and allows employers to vet staff they are recruiting.

The NSR currently has around 100,000 employees registered.