India-United Kingdom Free Trade Agreement (FTA)
The India-UK FTA, known as the Comprehensive Economic and Trade Agreement (CETA), is praised as a 'gold standard' by the Ministry of Union Commerce and Industry. It claims there has been no compromise in sensitive sectors like agriculture and labor-intensive manufacturing. However, there is concern about the impact on India's digital sovereignty, which has not received official comment or media scrutiny.
Compromises in the Digital Sector
- Source Code Access: India has reversed its position on accessing the source code of foreign digital goods or services. Previously, India insisted on the right to access source codes to ensure safety, security, and compliance. The U.S. has even withdrawn a similar stance, acknowledging the need for domestic regulatory access.
- Open Government Data: India has granted equal and non-discriminatory access to U.K. parties for 'Open Government Data.' In the digital era, data is invaluable for AI development, and this concession risks compromising India’s competitive advantage and security.
- Data Flow and Localization: India seems to have maintained its stance on data flow and localization but has agreed to consultations with the U.K. for extending similar concessions if provided to other countries. The U.S. has also recognized the importance of revising its stance on free data flow and localization.
Implications for Digital Sovereignty
- Digital trade agreements are long-lasting and shape the global digital order. India’s concessions could lead to a loss of digital autonomy.
- Without a specific constituency advocating for digital sovereignty, there is a risk of repeating historical losses experienced during early industrialization and colonial times.
Future Directions
- India must develop a comprehensive digital sovereignty and 'digital industrialization' policy. This policy should guide trade negotiations to protect India's digital future.
- Negotiators should include digital sovereignty experts who have direct access to top political leadership to safeguard India's digital interests.