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The Need for Digital Sovereignty in India

Context

 Growing dependence on foreign digital infrastructure and recent shocks like the U.S. H-1B visa fee hike and the Nayara Energy case highlight the urgent need for India to pursue digital sovereignty to safeguard its economy, security, and strategic autonomy.

Digital Dependence: India as a “Digital Colony”
  • India’s digital backbone is controlled by U.S. companies:
    • Smartphones → Android, iOS.
    • Laptops → Windows.
    • Cloud → AWS, Azure, Google.
    • Emails → Outlook, Gmail.
  • Critical infrastructure (banks, airports, grids, cyber security) runs on U.S. software.

Case Study: Nayara Energy 

  • Microsoft abruptly blocked Outlook and Teams for the Russia-linked Nayara Energy refinery in Gujarat.
  • Services were restored only after court intervention.
  • The incident demonstrated how foreign control over software could paralyse Indian industries overnight.

Need for Digital Sovereignty

  • National Security: Critical infrastructure (defence, energy grids, airports) runs on foreign operating systems and cloud services, creating risks of external disruption.
  • Economic Dependence:
    • Over 60% of India’s IT exports depend on the U.S.; over 85% on Western markets.
    • Dependence on H-1B visas and U.S. software companies gives other nations leverage over India’s economy.
  • Data Control and Privacy:
    • Massive volumes of Indian citizens’ and companies’ data are stored in foreign-owned servers.
    • Raises risks of surveillance, misuse, and data exploitation.
  • Technological Colonialism:
    • India’s digital backbone is controlled by U.S. firms-Android/iOS for phones, Windows for PCs, AWS/Azure for cloud, Gmail/Outlook for email.
    • This over-reliance undermines India’s strategic autonomy.
  • Loss of Domestic Innovation:
    • Indian IT firms focused on export-oriented coding services but neglected to create indigenous platforms, operating systems, or productivity suites.

Challenges to Achieving Digital Sovereignty

  • Overdependence on Foreign Tech: Smartphones, PCs, cloud services, cybersecurity, and industrial software are dominated by foreign providers.
  • Lack of Indigenous Platforms: Absence of strong Indian alternatives for OS, search engines, productivity suites, or social media.
  • Funding vs. Vision Gap: India has the talent but lacks long-term vision-driven missions for digital independence.

  • Weak Cybersecurity Ecosystem: Heavy reliance on imported security tools leaves gaps in protecting networks.
  • Resistance from Industry: Indian IT giants prefer export billing models instead of investing in indigenous product ecosystems.
  • Global Supply Chain Interdependence: Hardware components (chips, semiconductors) remain globally integrated, making full autonomy difficult.
Steps Taken by the Government
  • Policy Frameworks:
    • Digital India (2015): Promotes digital infrastructure, e-governance, and services.
    • National Cyber Security Strategy (draft, 2020): Framework for securing networks and infrastructure.
    • Digital Personal Data Protection Act (2023): Introduces data protection and localisation provisions.
  • Indigenous Initiatives:
    • Aadhaar, UPI, CoWIN, ONDC: Examples of strong domestic digital public infrastructure.
    • Indigenous OS efforts (BharOS) launched to reduce reliance on Android/iOS.
  • Capacity Building: Support for startups and domestic tech R&D under schemes like Startup India and Atmanirbhar Bharat.
  • Data Localisation Push: RBI mandated that payments data of Indian users be stored within India.
  • Cybersecurity Collaboration: Creation of CERT-In for monitoring cyber incidents and promoting security awareness.

Way Forward

  • Launch a Digital Swaraj Mission: Time-bound, mission-mode programme to build indigenous OS, cloud, cybersecurity, and industrial software.
  • Sovereign Cloud Infrastructure: Establish national cloud systems for government, defence, and critical sectors with strict data-localisation rules.
  • Promote Indigenous OS and Tools: Mandate gradual adoption of BharOS or other Indian OS in government systems. Create demand by reforming procurement policies.
  • Incentivise Local Innovation: Tie incentives and subsidies to IP creation and indigenous tech development.
  • Public–Private Partnerships: Collaborate with Indian IT firms, startups, and academia to create homegrown solutions.
  • Learn from China: Systematically build domestic platforms for OS, cloud, cybersecurity, and apps.

China’s Example

 

  • Built Kylin OS for government use and HarmonyOS for smartphones.
  • Created homegrown cloud giants (Alibaba, Tencent).
  • Enforced cybersecurity, industrial software, and data localisation.
  • Ensured foreign powers cannot paralyse its economy.
  • Global Strategy: While building autonomy, also diversify digital partnerships with Europe, Japan, and other neutral nations to reduce U.S. monopoly.

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