Xiaomi's India headintends to tackle all issues regarding security concerns, some of which have cropped up after the Indian Air Force issued a directive to its personnel, warning them against buying the popular Red Mi 1s. Jain told ET that the company that has sold over 400,000 smartphones within a quarter of launch in India plans to set up local servers.We do not have full information about the circular issued by IAF, however we believe that this advisory circular is based on events about 3 months back. We believe, it refers to the F-Secure test done on the Redmi 1S in July 2014 about the activation of our Cloud Messaging service by default. We immediately addressed the concerns raised by F-Secure. We scheduled a system update on 10th Aug 2014 to implement a change, which ensured that all the users had to manually activate the Cloud services, instead of being activated by default. After the upgrade, new users or users who factory reset their devices can enable the service by “settings” section. Once users have activated the services, they also have an option to turn it off at any point of time. This change was directly acknowledged by F-Secure, they confirmed that their concerns were addressed. We would be happy to talk to IAF to explain the entire situation to them. I am confident that we would be able to resolve any concerns or questions that they might be having.Yes, we do have plans to have data centres in India – maybe in 2015. Since early 2014, we have been migrating our services and corresponding data for Indian users from our Beijing data centers to Amazon AWS data centers in Singapore and USA. This migration will be fully completed by the end of the year. This helps improve the performance of our services and also provide some peace of mind for users in India in ensuring that we treat their data with the utmost care and will always maintain the highest privacy standards.We do not have a confirmed date yet. This might be sometime early next year.I would really like to clarify a few key points regarding Indian Air Force’s circular - Xiaomi does not collect any information without user permission. We offer various Internet-based services such as Mi Cloud and Cloud Messaging which require data to be stored in the cloud. Mi Cloud enables users to back-up and manage personal information in the cloud, as well as sync to other devices. Cloud Messaging service allows users to exchange text messages with each other free of SMS charges, by routing messages via IP instead of using the carrier’s SMS gateway. First, all these services are opt-in. Mi Cloud is turned off by default. Users must log in with their Mi accounts and manually turn on Mi Cloud. Users can also turn it off at any point of time. Second, when the data is sent to the cloud, we take rigorous precautions to ensure that all data is secured when uploaded to Xiaomi servers and is not stored beyond the time required. Strict encryption algorithms are implemented to protect user privacy. This is no different from other cloud back up services. If users want, they can use cloud services from Google Dropbox and many others. Third, Xiaomi never uploads photos, text messages, or any other data without the user’s consent. The storage of data in Mi Cloud fully respects the local laws of each country and region.