New Delhi (ABC Live): Artificial Intelligence (AI) is reshaping economies, democracies, and global security. Nations are racing to build large language models (LLMs) such as ChatGPT and Gemini. For India, with its 1.4 billion people and unmatched diversity, the opportunity is immense.

Yet a critical question arises: Should India build its own AI first, or secure India’s data sovereignty before doing so?

This investigation shows why India’s data sovereignty must come before large-scale AI development. Without it, India risks becoming a data colony — where foreign companies exploit Indian datasets to build global models while India loses control over its most strategic resource.

India’s Data Wealth: A Strategic Advantage

India has one of the world’s richest data ecosystems:

• Demographic Diversity: 22 official languages, hundreds of dialects, and socio-economic layers across 1.4 billion citizens.

• Government Platforms: Aadhaar (biometrics), UPI (digital payments), DigiLocker (documents), and ABDM (health stack).

• Private Sector Data: Telecom (Jio, Airtel), fintech (Paytm, PhonePe), and e-commerce (Flipkart, Zomato).

? Key Insight: India’s datasets are a foundation for AI leadership. But without India’s data sovereignty, this advantage may be lost to foreign firms.

Risks of Ignoring India’s Data Sovereignty

If India fails to secure its data, four risks become unavoidable:

1. Data Colonialism: Indian data feeds foreign AI models without benefits returning to India.

2. Cultural Distortion: Global models may misrepresent Indian languages and values.

3. National Security Threats: Leaks of health, legal, and defence data weaken sovereignty.

4. Lost Economic Value: India remains a raw data supplier instead of a global AI leader.

? Example: Meta’s LLaMA model uses multilingual data, some derived from India, but without structured licensing or reciprocity.

Deep Data Analysis: India’s Data Landscape

India generates nearly 20% of the world’s data but holds just 3% of global storage capacity. This imbalance, noted in MeitY’s National Strategy for Artificial Intelligence (Government of India), highlights the urgency of building infrastructure and governance frameworks.

According to PIB’s press release on the IndiaAI Mission 2024, the government has allocated ?10,300 crore to build compute infrastructure, innovation hubs, and a unified dataset platform. However, siloed departmental data and weak privacy protections remain barriers.

India’s data privacy framework has also begun to take shape with the Digital Personal Data Protection Act, 2023. While it is a step forward, it lacks clear mechanisms for AI-specific protections and data-sharing governance.

Global Lessons for India Data Sovereignty

• United States: Uses export controls to protect computers and data.

• China: Declares data as a matter of sovereignty and enforces tight controls.

• European Union: Enforces GDPR and the AI Act, making regulation a global benchmark.

? Lesson for India: All major powers treat data as a strategic resource. India must assert data sovereignty to avoid dependence and exploitation.

Why India Data Sovereignty Must Come First

Before building BharatGPT or any indigenous model, India must secure its data because:

1. Foundation of BharatGPT: Multilingual, culturally relevant AI depends on secure datasets.

2. Negotiation Power: Sovereignty allows India to license data to global players on its own terms.

3. Democracy Protection: Strong governance reduces risks of deepfakes and electoral manipulation.

4. Global South Leadership: India can lead the Global South on equitable AI governance only if its own house is in order.

Policy Roadmap for India Data Sovereignty

1. Declare Data Strategic: Recognise it as vital as oil or nuclear energy.

2. National AI Data Repository: Curated, anonymised, and accessible for domestic researchers.

3. Foreign Licensing: Mandate royalties or reciprocity when Indian datasets are used abroad.

4. Expand Compute Infrastructure: Scale AIRAWAT supercomputers, AI chips, and cloud networks.

5. Ethical Governance: Establish consent mechanisms, bias audits, and redress systems for citizens.

For financial and regulatory integration, the Reserve Bank of India’s AI policy notes stress the importance of using AI with data security frameworks, particularly in digital lending and payments.

Conclusion: The Data-First Imperative

India has the capacity to lead in AI with BharatGPT and other indigenous models. But without India data sovereignty, this vision will remain vulnerable.

? The evidence is clear: India must secure its data before developing AI. This is about more than technology — it is about national security, democracy, and India’s leadership role in the Global South.

How This Report is Unique

Unlike other reports that focus only on talent or startups, this investigation:

• Highlights the threat of data colonialism.

• Frames India data sovereignty as a national security issue.

• Links data to democracy, governance, and fairness.

• Positions India as a rule-setter for the Global South, not just a participant.

? Why ABC Live publishes this report now: With the AI Impact Summit 2026 approaching, India has a rare chance to shape global AI norms. Securing data sovereignty first ensures that India negotiates from a position of strength.

? Hyperlinks Included

1. MeitY – National Strategy for Artificial Intelligence (Government of India)

2. PIB – IndiaAI Mission 2024 Press Release

3. Digital Personal Data Protection Act, 2023 (PRS India)

4. European Union – AI Act

5. RBI – Artificial Intelligence in Finance

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