Act Before It’s Too Late, Build a Sovereign Digital Backbone

India’s economy and security are deeply reliant on US software, cloud, and social media platforms, creating a major vulnerability in times of geopolitical tension.

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By Ajay Srivastava

Ajay Srivastava, founder of Global Trade Research Initiative, is an ex-Indian Trade Service officer with expertise in WTO and FTA negotiations.

September 14, 2025 at 12:35 PM IST

India’s economy, government, and military remain heavily dependent on US-controlled digital infrastructure, raising alarms over sovereignty and national security. More than 25 million government and enterprise laptops run on Microsoft Windows, while over 500 million smartphones rely on Google’s Android operating system and another 30 million use Apple’s iOS. If access to these systems were ever cut off or licences revoked, banking, governance, and corporate operations would come to a standstill.

The reliance extends far beyond operating systems. Productivity software such as Microsoft Office, Exchange, and Teams dominate 20 million devices, with Google Workspace covering another 5–10 million users.

India’s own secure NIC email platform remains confined to a handful of ministries and cannot replace these tools at scale.

Cloud computing presents another vulnerability. Amazon Web Services, Microsoft Azure, and Google Cloud collectively host thousands of Indian workloads, including those of fintech firms, e-commerce giants, and government platforms.

The government’s MeghRaj National Cloud initiative is yet to reach the capacity to serve as a viable alternative.

Cybersecurity, too, is dominated by foreign vendors. Microsoft Defender, Cisco, Palo Alto Networks, and CrowdStrike protect millions of endpoints.

Critical infrastructure, from power grids to telecom networks and manufacturing plants, uses US-made SCADA and PLC software. Systems that experts warn could be remotely disabled in extreme circumstances.

India’s defence preparedness also depends on proprietary American mission software embedded in Apache helicopters and maritime patrol aircraft.

Even the country’s information gateways are largely foreign-controlled. Google Chrome commands 95% of India’s browser market, while US-based social media platforms — Facebook, WhatsApp, Instagram, YouTube, and X — dominate online discourse with minimal local oversight.

This deep dependence could become a major vulnerability in times of geopolitical friction, making a case for accelerated development of indigenous software, cloud, and cybersecurity solutions.

Europe and China

Europe has placed technology sovereignty at the heart of its policy agenda.

The European Union is building sovereign cloud capacity, mandating that sensitive data remain within EU borders, and rolling out landmark regulations such as the Digital Services Act and Digital Markets Act despite sustained pressure from Washington and Big Tech.

China moved even earlier and more aggressively. Since the late 1990s, Beijing has systematically replaced foreign software across critical systems.

  • Its government now runs on Kylin OS instead of Windows, while Huawei’s HarmonyOS powers many domestic smartphones. 
  • Search engines like Baidu and Sogou have displaced Google, and cloud services from Alibaba and Tencent host China’s most sensitive data.
  • The country’s cybersecurity, IoT platforms, and defense command-and-control systems are largely homegrown, minimizing US code in critical infrastructure.

Policy experts say these examples demonstrate that building digital autonomy is not about isolationism or protectionism but about national security. “Europe and China show that strategic control over digital infrastructure is now a prerequisite for economic and military resilience,” said a senior technology analyst.

Analysts point out that US law compels American technology firms to share data with their government, and services can be cut off through executive orders or court rulings. “A sudden disruption could paralyze critical systems — banking, tax filings, even digital payments — overnight,” said a senior researcher.

The risks are not limited to infrastructure. Social media platforms and their algorithms, largely controlled by US companies, can influence public discourse. Without domestic oversight of these platforms, experts warn, India’s democracy remains vulnerable to disinformation campaigns and attempts to inflame social divisions.

India’s Strategic Asset

Despite these vulnerabilities, India holds a powerful bargaining chip: data. With 1.4 billion users, India is the largest open market for US tech giants and their primary source of data outside China. This data fuels global artificial intelligence models and underpins the companies’ revenues.

Washington has been pressing India to allow the “free flow of data” and to drop plans for digital taxation, proposals that would weaken India’s leverage.

Policy analysts argue that India should instead treat its data as a strategic resource, akin to oil or rare earth minerals.

By insisting on local data storage, taxing digital transactions, and developing its own AI ecosystem, India could transform this vast data pool into a source of bargaining power in trade, technology, and security negotiations.

‘Digital Swaraj Mission’

After revolutionising digital payments through UPI and democratising e-commerce via ONDC, India must take its most ambitious step yet — launch a “Digital Swaraj Mission” aimed at building sovereign technology capabilities by 2030.

The proposed mission, dubbed Digital India Stack 2.0, would focus on five key pillars:

  •  Sovereign Cloud Expansion: Scaling up the government’s MeghRaj cloud and setting up additional cloud capacity to host critical national data, with mandatory local hosting for government and financial systems.
  • OS & Productivity Independence: Migrating ministries and public-sector units from Microsoft Windows to Linux or an indigenous operating system, alongside the creation of Indian alternatives to Microsoft Office and Google Workspace.
  • Homegrown Mobile Ecosystem: Backing Indian forks of Android and building independent app stores to reduce dependence on Google and Apple.
  • Indigenous Cybersecurity & Industrial Controls: Funding Indian-developed SCADA, PLC, IoT platforms, and cybersecurity solutions through agencies like C-DAC, DRDO, and startup collaborations.
  • Data Sovereignty & AI Leadership: Enforcing local data storage rules, levying digital taxes, and building an AI compute grid powered by India’s data advantage.

The plan should roll out in phases.

  • In the short term (1–2 years), India should mandate sovereign cloud hosting for critical data, launch a national OS programme, and pilot Linux transitions in key ministries.
  • In the medium term (3–5 years), government systems should fully migrate to Indian software, and public-private cybersecurity consortia should be operational.
  • By the long term (5–7 years), India must achieve cloud parity, replace foreign OS in defence and critical sectors, and create globally competitive open-network platforms.

The mission is not about digital isolation but about resilience and reciprocity. India has the talent and the market to build sovereign capability. Just as UPI and ONDC changed the world of payments and commerce, we can do the same for core digital infrastructure.

In an era of tariffs, sanctions, and technology wars, sovereignty will be measured not just by territory or GDP but by “who controls the code.” The message is clear: India must build a secure digital backbone now — or risk being digitally switched off in the future.