Global Power Dynamics and the Role of Data
The global power landscape has shifted from traditional controls like oil fields and naval chokepoints to data, which is now the key determinant of geopolitical influence and wealth. Nations' digital footprints have become crucial for economic prosperity and diplomacy.
India's Digital Governance Trilemma
India faces a critical choice in navigating digital governance:
- Digital Ascendancy: Dominated by the United States, characterized by control over global data, information, and financial systems. It involves leveraging technological hegemony to influence global dynamics, such as expelling nations like Iran and Russia from the financial system.
- Digital Capitulation: Illustrated by Indonesia and Malaysia, where digital autonomy is traded for short-term commercial gains, leading to significant loss of digital sovereignty.
- Genuine Digital Sovereignty: The preferred path for India, focusing on maintaining sovereign control over digital domains and preventing foreign dominance.
The Ascendancy Model and Its Implications
The U.S. model forces nations to compromise their sovereignty, evident in India's challenges with securing Russian crude due to financial system dependencies and pre-emptive concessions in digital taxation.
Examples of Digital Capitulation
- Indonesia's permanent moratorium on data flow duties and free export of personal data.
- Malaysia's commitments against imposing digital services taxes and not demanding access to U.S. proprietary knowledge, which limits national digital policy.
The Case for Digital Sovereignty
India must establish legal and regulatory frameworks for controlling data exports and regulating the national digital environment, drawing lessons from China's model of developing domestic digital giants.
Strategic Approach for India
While India cannot replicate China's model due to its democratic nature, it can focus on digital industrialization:
- Building indigenous capabilities through initiatives like Digital Public Infrastructure, Aadhaar, and India Stack.
- Promoting strategic focus on AI, semiconductors, and quantum computing.
Conclusion: The Path to Digital Sovereignty
India must avoid clauses in trade agreements that undermine domestic digital policies and instead focus on fostering national digital giants. Achieving digital sovereignty will lead to significant economic growth and job creation, preventing dependency and ensuring a secure digital future.
