Amid allegations of theft of data from BPOs in New Delhi, the US on Friday said India needs to have a credible data protection regime in its own interest.
"Data protection is an important issue," Mulford told reporters, adding Washington had asked the government to ensure that.
He said India needs to look at its interests and needs to have a credible data protection regime on the pattern of Intellectual Protection Rights (IPR) law.
He said he was not sure how long it would take.
Mulford's comments came in response to questions on reports that data of clients was being leaked out by some BPO employees.
He said the economic cooperation between the two countries was growing and US companies had expressed significant interest in pumping FDI in India.
The CEOs forum is working in this direction.
He said the largest US trade mission will be visiting India next month during which about 200 companies would be exploring possibilities of doing business in the capital.