India’s Digital Strategy: From Technological Sovereignty to Interdependence

Pranav VS & Mayilvaganan M . #2604 . International Affairs Perspective . 29 September 2026 .

Pranav VS and Mayilvaganan Muthumariappan examines India’s digital strategy, focusing on technological sovereignty and resilient interdependence amid growing dependence on global digital technologies. The article examines Digital Public Infrastructure (DPI) and Aatmanirbhar Bharat (Self-Reliant India), arguing that technological independence does not require isolation but can be achieved through strong domestic capabilities combined with strategic connections to global digital systems.

Introduction: India’s Digital Strategy and Technological Enmeshment

Technological enmeshment refers to the deep integration of foreign-controlled digital systems into a nation’s critical infrastructure, economy, and society. Unlike earlier forms of technological adoption, contemporary digital technologies—including cloud platforms, artificial intelligence (AI), and Digital Public Infrastructure (DPI)—can create an “enmeshment flywheel” that amplifies their strategic impact. Once a country becomes dependent on dominant foreign technologies, switching to alternative solutions can become increasingly difficult, potentially increasing strategic vulnerability and creating challenges for national security.

In this context, India’s response has therefore involved not simply reducing external dependence, but developing domestic digital capabilities while maintaining strategic connections with global technology ecosystems. For India, this balancing act presents two significant and interconnected challenges. First, dependence on foreign digital systems can create risks related to algorithmic bias in governance, potentially contributing to discriminatory or uneven decision-making. Second, exposure to external supply-chain disruptions, technology restrictions, or digital sanctions may affect essential services and critical infrastructure.

In response, technological sovereignty has become an important element of India’s digital strategy sine 2015, coinciding with the launch of the ‘Digital India’ program under National Democratic Alliance (NDA) government headed by Prime Minister Narendra Modi, emphasising greater domestic technological capacity and reduced dependence on critical foreign technologies. However, this pursuit of sovereignty does not imply technological isolation. Rather, India seeks resilient interdependence—strengthening domestic capabilities while maintaining strategic engagement with global technology networks, markets, and value chains.

The Evolution of India’s Strategic Posture

India aims to reduce digital dependence with its Atmanirbhar Bharat—Self-Reliant India—vision, which is key to its future growth. This strategy focuses on self-reliance, rather than total self-sufficiency or isolation, recognizing that in our interconnected world, interdependence and collaboration across borders are essential.

Historically, India depended on foreign platforms, using Western software models like commercial operating systems and private cloud services. This raised concerns over data control, national security threats, and information protection. To address these issues, the government has introduced various programs and incentives to encourage innovation in digital technology. Recognizing the need for a strong digital ecosystem, India is shifting from being a consumer to becoming a designer of its digital future, supporting local solutions that meet specific needs.

By developing local technology solutions like indigenous software and infrastructure such as Unified Payments Interface (UPI), Aadhaar, and the,the IndiaAI Mission, India retains control over its digital networks, allowing it to make independent decisions in the digital age. This transformation not only promotes innovation within the country but also encourages entrepreneurship among Indian tech startups, helping India emerge as an important player in the global digital arena.

The emphasis on digital education and skill development through platforms like SWAYAM, DIKSHA, Skill India Digital Hub (SIDH), also plays a crucial role, equipping the workforce with the necessary tools to thrive in a technology-driven economy. Additionally, more investments in research and development, along with a supportive policy framework that includes tax incentives and funding opportunities, are critical for realizing this vision, enabling India to effectively harness its large talent pool and resources while staying competitive globally.

Digital Public Infrastructure and the Pursuit of Technological Sovereignty

India has developed a large-scale Digital Public Infrastructure (DPI) ecosystem, including the India Stack, an open digital platform built around public services. It started with the launch of the Aadhaar biometric identity system in 2009 and grew significantly with the the Unified Payments Interface (UPI). This approach moves away from models where private digital intermediaries can extract rents from transactions and control access to digital services. Further, India’s DPI—featuring identity (Aadhaar), payments (UPI), and data exchange (DEPA)—leverages open-source APIs to build interoperable, non-proprietary systems.

By establishing these systems as public infrastructure based on open standards, India reduce barriers to innovation and create a competitive environment for new service providers to develop services on shared digital foundations. Additionally, India has implemented data governance rules that mandate certain data categories be stored or processed domestically, emphasizing the importance of data sovereignty and national control over digital infrastructure. This approach directly counters the exploitative practices of global platforms that view data merely as a commodity for export and profit.

By taking control of “new technology,” India aims to treat digital resources as public assets instead of just private ones. Raghunath suggests that this change goes beyond just digitisation; it involves a governance system where data protection is part of public technology. This signifies an understanding that as digital systems grow, there must also be rules to safeguard personal information and manage its use.

This change highlights the importance of India’s policy in guiding technology and the need for governance that involves government, industry, and society. Incorporating data protection into digital systems can enhance privacy and build public trust. In this way, India shows how technology and data governance can work together to create strong and inclusive digital institutions.

The Paradox of Dependency: The Materiality of the Stack

Despite these achievements, India faces a major “Paradox of Dependency.” While the Digital Public Infrastructure (DPI) protects the service and application layers, foreign players mainly control the physical and logical layers, such as semiconductors, advanced GPU clusters, and large language models (LLMs). This situation shows how challenging it is to attain complete sovereignty in a connected world. The semiconductor industry, in particular, shows the challenges of national policy; no single nation can easily replicate the entire global supply chain.

This dependency leads to a delicate balance. When the “application layer” takes charge and the “silicon layer” relies on external support, the situation becomes risky because of geopolitical pressures. Thus, Indian policymakers need to attract global investment for essential hardware and R&D while also building a stronger domestic ecosystem to withstand external challenges.

This transition involves moving from “Digital Autonomy” (the desire to be independent) to “Resilient Interdependence” (the ability to operate even if connections are cut off). Recent efforts, like the IndiaAI Mission and the creation of local models such as BharatGen and Sarvam-1, show a clear plan to address this by customizing AI for Indian languages and cultures, instead of relying solely on imported foundational models. This approach clearly places India on the global stage. Unlike the United States, which mainly depends on the private sector for innovation, or China, which uses a strong government approach to direct AI development for its goals, India follows a mixed strategy.

Furthermore, while the European Union emphasizes a comprehensive, risk-tiered regulatory framework to protect rights—often at the cost of rapid scaling—India deliberately avoids overly restrictive pre-emptive regulation to prioritize ecosystem growth and public-good deployment. By integrating AI directly into its Digital Public Infrastructure (DPI) framework, India creates an alternative governance archetype that balances sovereign oversight with market innovation.

Socio-Technical Challenges of Digital Interdependence

A key issue that is often overlooked in discussions about enmeshment is how these systems are governed socially and technologically. Sharma and Saran highlight a troubling trend of “weaponizing data and technology” or “Digital Colonization,” which leads to a harmful loss of agency, sovereignty, and privacy for everyday people.

India’s Digital Public Infrastructure (DPI) brings up concerns about achieving technological independence without creating power imbalances in the government. It is essential for India to make sure that DPI does not substitute foreign technology control with state-led surveillance or over-reliance on technology solutions.

The governance of DPI must be as strong as the technology, ensuring security while protecting privacy, accountability, and allowing citizen participation. This needs structures that can oversee digital systems independently and incorporate perspectives from government, civil society, citizens, and industry.

Independent stewardship institutions require enough independence, knowledge, and resources to manage the digital ecosystem effectively, while clear and inclusive governance helps reduce decision-making power concentration. These factors are especially crucial when India’s digital public infrastructure (DPI) functions in both public and private sectors, as they ensure accountability goes beyond just technology design.

Finally, open and interoperable systems encourage participation and innovation, whereas closed systems often concentrate control with either foreign companies or local institutions. Therefore, ongoing involvement from all stakeholders is crucial to ensure that digital public infrastructure (DPI) develops in ways that address governance risks linked to technology and support its wider public goals.

Conclusion: Toward Resilient Interdependence in the Global South

India’s use of technology will define its role in the global digital landscape as it promotes its Digital Public Infrastructure (DPI) model through digital diplomacy and partnerships. By encouraging “principled autonomy,” India can help other Global South countries evaluate their tech reliance while staying connected to global networks. This approach focuses on building local skills while maintaining international engagement, avoiding technological isolation. As India works towards its Viksit Bharat 2047 goal, merging artificial intelligence (AI) with digital public infrastructure (DPI) will be crucial for its digital growth.

India’s experience indicates a new way to understand technological sovereignty. Rather than viewing it as complete independence from foreign technologies, “resilient interdependence” emphasizes the importance of participating in global digital networks while managing the risks of dependence on others. This view defines technological autonomy as the ability to engage with global systems while maintaining strong local control over essential digital infrastructures.

Mr. Pranav VS is a Research Intern at CHSIA and an Undergraduate Student at Guru Nanak College, Chennai, India. Dr. Mayilvaganan M. is the Director of CHSIA., and a Geopolitical and Human Security Analyst & Consultant.

Views expressed are those of the authors and do not necessarily reflect the views of the CHSIA, an independent, nonprofit and nonpartisan organization.