The Indian Software Product Industry Roundtable (iSPIRT), an organization instrumental in the early adoption of groundbreaking initiatives like Aadhaar and the India Stack (which includes technologies such as DigiLocker and FasTAG), has issued a compelling plea to Prime Minister Narendra Modi. They advocate for a firm stance against potential concessions in U.S. trade talks, specifically regarding “source code access, cross-border data flows, open government data, local presence requirements, and prohibitions on digital custom duties.” iSPIRT argues that agreeing to these terms would critically undermine India’s “digital sovereignty.”
The group emphasized the urgent need for a “digital sovereignty law” to foster and expand India’s indigenous technological capabilities. This appeal follows recent bilateral trade negotiations with the United Kingdom, where India reportedly made concessions on access to source code—a common demand from foreign corporations to protect their proprietary products—and committed to making ‘open government data’ available.
Highlighting India’s vulnerability, the letter cited the recent incident involving Microsoft, which briefly severed essential cloud services to Nayara, an Indo-Russian oil refinery in Gujarat, due to European Union sanctions. “The Nayara case, where Microsoft and SAP withdrew crucial cloud services, clearly illustrates our precarious position,” the letter stated. It also pointed out that “Indian courts, lacking the legal framework for holding global digital companies accountable, were unable to provide interim relief for Nayara.”
Furthermore, the letter recalled an earlier instance where Google India deferred responsibility to its U.S. parent company when summoned by the Supreme Court of India concerning content regulation. iSPIRT asserts that “India, with its vast market and rapidly expanding digital economy, cannot permit foreign digital platforms to extract Indian data and profits, potentially weaponizing them, all while seeking refuge behind foreign jurisdictions.”
Manav Gudwani, a research fellow specializing in technology sovereignty at the Bengaluru-based Takshashila Institution, elaborated on this concern: “When international platforms can abruptly suspend cloud services, or when trade agreements propose binding regulations on cross-border data flows, algorithms, and digital taxes, it inevitably erodes the state’s capacity to govern its own digital economy.”
Gudwani clarified that this argument is not a call for isolationist self-reliance but rather a strategic recognition that “sovereignty means retaining the freedom to regulate data, protect critical infrastructure, and shape standards in alignment with national priorities.” He concluded, “Without this fundamental freedom, the widespread adoption of digital technologies risks fostering a new form of dependency, where India actively participates in global networks but wields minimal control over their operational terms.”