Explained: India is emerging as a global leader in data sovereignty. This ABC Live analysis explains how it balances domestic control, digital growth, and Global South diplomacy.
Editor’s Note (ABC Live Editorial Board)
As data becomes the new oil of the digital age, India is shaping its place in the global contest over data sovereignty—the principle that nations control the data generated within their borders.
This Explained report analyses India’s strategy, backed by hard data, legal frameworks, and case studies—showing how India balances growth, security, and Global South leadership in the geopolitics of data.
New Delhi (ABCLive): In the 20th century, the geopolitics of oil and energy security determined the balance of global power. In the 21st century, it is data sovereignty that is emerging as the new arena of competition. Data—whether personal, financial, industrial, or strategic—has become a critical resource for nations, shaping economies, military strategies, and global trade.
India, with its 1.4 billion people, expanding digital economy, and rapidly growing digital public infrastructure, sits at the crossroads of this transformation. Unlike the United States (which promotes unrestricted data flows), the European Union (which prioritises privacy), and China (which enforces state control), India is attempting to chart a hybrid path: one that protects sovereignty while enabling digital growth.
This makes India’s role in data sovereignty not just a domestic policy choice, but a geopolitical factor that will influence the future of digital governance, trade negotiations, and the Global South’s quest for technological independence.
Understanding Data Sovereignty
Data sovereignty means that data is governed by the laws of the country where it is generated, stored, and processed. Nations increasingly treat data as a strategic resource—vital for security, trade, and innovation.
India, unlike the U.S. (which promotes free flows), the EU (privacy-first), or China (state-control), has emerged as a hybrid model—balancing growth and sovereignty.
?? India’s Strategic Digital Scale
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Internet Users: 881 million (2023), projected to cross 1.2 billion by 2025.
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Mobile Data Traffic: India consumes 21% of global mobile data (Ericsson Mobility Report 2024).
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Digital Payments: UPI handled 14.04 billion transactions worth ?21.9 lakh crore in July 2025.
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Data Centres: Capacity to expand from 870 MW (2022) to 1,700 MW (2025).
? This scale gives India geopolitical bargaining power: foreign tech giants cannot ignore Indian regulations.
Example: In 2021, Mastercard was barred from issuing new cards until it complied with the RBI’s data localisation mandate.
?? India’s Legal & Policy Anchors
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Digital Personal Data Protection Act, 2023: Covers 1.4B citizens, fines up to ?250 crore (~USD 30M).
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RBI Localisation Rules: All payment data must be stored in India.
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Digital Public Infrastructure (DPI): Aadhaar (1.39B users), UPI (global payments export), ONDC (targeting $200B e-commerce by 2030).
Example: UPI–PayNow link (India–Singapore, 2023) showed India exporting its sovereign payment infrastructure, strengthening digital diplomacy.
? India in Global Geopolitics of Data
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At WTO: India resists permanent e-commerce tax moratoriums, arguing Global South loses ~USD 10B yearly in tax revenues.
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At G20 Delhi (2023): Launched Digital Public Infrastructure repository, adopted by 12+ developing nations.
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Between Powers: India rejects both U.S. “free flow” and China’s “state monopoly,” promoting Digital Non-Alignment.
Example: India–South Africa joint opposition at WTO framed uncontrolled cross-border flows as “data colonialism.”
? Data Sovereignty & Security
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Cyber Threats: 1.39M cyber incidents reported in 2022–23.
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AI Race: India’s AI market projected at USD 17B by 2027.
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Undersea Cables: 14 systems connect India to global internet traffic.
Example: In 2022, Chinese malware attacks on Ladakh’s power grid highlighted why local control of data = national security.
? Comparative Global Approaches to Data Sovereignty
| Aspect | ?? India | ?? U.S. | ?? EU | ?? China |
|---|---|---|---|---|
| Model | Hybrid (growth + sovereignty) | Free flow | Privacy-first (GDPR) | State-control |
| Key Law | DPDP Act 2023 | CLOUD Act 2018 | GDPR 2018 | Data Security Law 2021 |
| Localization | Mandatory for finance & sensitive data | None | Conditional (“adequacy”) | Strict |
| Penalties | ?250 crore (~$30M) | Weak federal protections | €20M or 4% turnover | Heavy fines + prison |
| Infrastructure | DPI + local data centres | Big Tech clouds | GAIA-X initiative | State-backed + tech giants |
| Global Role | Digital Non-Alignment, DPI export | Free trade champion | Global privacy leader | Digital Silk Road export |
? How This Report is Unique from Other Media Reports
Most mainstream coverage on data sovereignty highlights U.S.–China tech rivalry, EU privacy laws, or Big Tech disputes. What they miss is:
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India’s Hybrid Model: A middle path between U.S. openness, EU privacy-first, and China’s state control.
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Global South Lens: India as a voice against “data colonialism”, exporting sovereign digital solutions.
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Evidence-Based Analysis: Integration of hard numbers (UPI volumes, data centre growth, cyberattack stats) with case studies (Mastercard ban, UPI–PayNow, Ladakh grid attack).
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Comparative Global Table: A structured side-by-side view (India–U.S.–EU–China) rarely found in mainstream media.
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Strategic Timing: Linked with DPDP Act enforcement and the Trump tariff war, situating India’s role in the larger trade–tech–security nexus.
? Outlook: India’s Digital Non-Alignment
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Domestic Sovereignty: DPDP enforcement + rapid data centre growth.
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Global Bargaining Chip: India can negotiate with the U.S., the EU, and China as the world’s second-largest data pool.
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Leadership Role: By exporting DPI to the Global South, India positions itself as a digital governance leader.
? Why ABC Live Publishes This Report Now
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Context: With the Trump tariff war reshaping digital trade and India finalising implementation of the DPDP Act, data sovereignty has become a defining geopolitical issue.
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Relevance: Mainstream coverage focuses on Big Tech disputes, but ABC Live highlights India’s hybrid role—as both a guardian of sovereignty and a growth engine for the digital economy.
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Uniqueness: This report combines hard data, legal analysis, case studies, and comparative insights with a Global South perspective.
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Sources
- Telecom Regulatory Authority of India (TRAI) – Internet and broadband subscriber data (2023):
https://trai.gov.in - Ericsson Mobility Report (2024) – Global mobile data traffic and India’s share:
https://www.ericsson.com/en/reports-and-papers/mobility-report - National Payments Corporation of India (NPCI) – UPI monthly transaction statistics:
https://www.npci.org.in/what-we-do/upi/product-statistics - Reserve Bank of India (RBI) – Data localisation guidelines for payments systems (2018 circular):
https://rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=11243 - Digital Personal Data Protection Act, 2023 – Ministry of Electronics & IT, Government of India:
https://www.meity.gov.in/data-protection-framework - Press Information Bureau (PIB) – G20 New Delhi Leaders’ Declaration and DPI repository:
https://pib.gov.in/PressReleasePage.aspx?PRID=1952821 - World Trade Organisation (WTO) – E-commerce moratorium discussions and India’s stance:
https://www.wto.org/english/tratop_e/ecom_e/ecom_e.htm - Indian Computer Emergency Response Team (CERT-In) – Cyber incident statistics:
https://www.cert-in.org.in - PwC Report on AI in India (2023) – Market projection of AI industry:
https://www.pwc.in/research-insights/ai-india.html - TeleGeography Submarine Cable Map – India’s undersea cable infrastructure:
https://www.submarinecablemap.com - CRISIL Research (2023) – India’s data centre capacity projections:
https://www.crisil.com - Case Reference: Mastercard ban (2021) – Reuters coverage:
https://www.reuters.com/business/finance/india-bars-mastercard-issuing-new-cards-non-compliance-2021-07-14 - Case Reference: Chinese cyberattack on Ladakh grid (2022) – Recorded Future / Reuters report:
https://www.reuters.com/world/india/india-power-firms-targeted-chinese-hackers-report-2022-04-06
