India's Digital Growth and Challenges
India is witnessing rapid digital adoption, with 108 unicorns and a thriving tech sector. Despite its diverse demographics, the transformative impact of technologies such as artificial intelligence (AI), blockchain, cloud adoption, and data analytics is undeniable. However, a significant challenge remains in ensuring data sovereignty, crucial for a self-reliant digital future.
Data Sovereignty and Security Concerns
- Cybersecurity incidents in India have surged, particularly between 2019 and 2023, with cases reported to CERT-In increasing more than fourfold.
- As India digitizes governance, banking, and healthcare, even minor breaches can result in significant disruptions.
- The global stance on data protection is becoming more protectionist, with laws like GDPR and CCPA influencing data privacy frameworks worldwide.
India's Economic Transition and Digital Strategy
India is on the path from a middle-income to a high-income economy. A digital-first strategy, supported by strong data governance, is essential for sustainable growth.
- India's rapid rise in the Global Innovation Index shows its digital prowess, ranking 39th in 2024 from 65th in 2013.
- The country is a major startup hub, with over 159,000 startups, and expected to host over 620 global capability centers by 2030.
- Technological advancements, such as AI-driven innovations, are transforming sectors like e-commerce.
Data Infrastructure Expansion
- India has 153 data centers, with Mumbai and Bengaluru leading.
- Data center capacity is expected to more than double by FY27 to 2-2.3Gw, according to Crisil Ratings.
- Despite domestic laws, global tech firms continue to control sensitive user data, highlighting the need for a global digital sovereignty framework.
Need for Global Regulatory Framework
India must advocate for a binding global regulatory framework to ensure data sovereignty without hindering innovation.
- Prime Minister Narendra Modi emphasized the need for collective global efforts at the AI Action Summit in Paris.
- Without stringent regulations, the growth of India's public cloud services market, projected to reach $25.5 billion by 2028, may only benefit foreign entities.
Conclusion
To maintain control over its data, which is a critical resource, India must leverage its digital influence to establish a regulatory framework that ensures data sovereignty while promoting global cooperation.
Note: The author is the chairman of the EPIC Foundation and Mission Governing Board, National Quantum Mission. The views are personal and do not reflect the opinions of Business Standard.