Source: The post India’s Digital Sovereignty Compromised in UK Trade Deal has been created, based on the article “What has been missed is India’s digital sovereignty” published in “The Hindu” on 2nd August 2025. India’s Digital Sovereignty Compromised in UK Trade Deal.
UPSC Syllabus Topic: GS Paper 3- Effect of policies and politics of developed and developing countries on India’s interests.
Context: The India-UK Free Trade Agreement (FTA), praised as a ‘gold standard’ by Commerce Minister Piyush Goyal, raises serious concerns over key concessions in the digital sector. Despite its deep implications, the agreement’s impact on India’s digital sovereignty has gone largely unexamined.
For detailed information on India-UK Free Trade Agreement 2025 read this article here
Undermining India’s Digital Sovereignty
- Reversal of Key Policy Positions: India has abandoned core digital policy stances long held at global forums like the WTO. Even the U.S., once a strong advocate of such provisions, has reversed similar positions in recent years.
- Long-Term Consequences of Digital Rules: Digital trade agreements are not like commodity deals. They involve rule-making that locks countries into long-term frameworks. Reversing such rules later is extremely difficult.
- Absence of Political Pushback: Unlike agriculture or manufacturing, digital sovereignty lacks a vocal domestic constituency. This absence has allowed serious concessions to pass without political resistance.
Critical Concessions on Source Code Access
- Loss of Pre-Access Rights to Source Code: India gave up the right to demand source code access before approving foreign digital products, even in sensitive sectors like AI, telecom, and health. Only post-facto access for investigations is allowed.
- Contrast with Global Practice: Earlier U.S.-led agreements excluded software for critical infrastructure. Even mass-market software had exceptions. In contrast, the India-UK FTA bans source code access for all software.
- Impact on Regulation and Safety: This limits regulators’ ability to inspect embedded software for safety, security, and compliance. It also prevents timely upgrades, weakening India’s control over digital systems.
Surrendering Access to National Data
- Conceding Open Government Data: India has granted equal access to Open Government Data for UK entities. Although non-binding, this signals a shift in how India views its national data assets.
- Risks to AI and National Security: Data is the foundation of AI. Allowing foreign access undermines India’s ability to build its own AI solutions and poses risks of data misuse.
- Disconnect with National Goals: This concession contradicts India’s stated ambition to become a global AI leader. It jeopardises the digital advantage India could have developed using its own data.
Weakening India’s Data Governance Stand
- Risky Clause on Data Localisation: India agreed to consult the UK if it offers better data terms to another country. This weakens India’s longstanding position on data localisation.
- Opening Doors to Future Pressure: Such clauses create vulnerabilities in future deals. Other countries may demand similar treatment, reducing India’s policy flexibility.
- Ignoring Global Policy Shifts: Even the U.S. has stepped back from pushing free data flow. India’s move seems uninformed by these recent global changes.
The Need for a Coherent Digital Strategy
- Lack of Digital Industrialisation Plan: India appears unprepared. It lacks a defined roadmap for becoming a digital power and is reacting without strategic clarity.
- Need for Clear Policy Framework: India must urgently create a digital sovereignty and industrialisation policy to guide trade negotiations and digital decisions.
- Inclusion of Experts in Negotiations: Trade negotiators should work with digital experts who can represent national interests and escalate critical issues to top leadership.
Question for practice:
Discuss how India’s digital trade concessions in the UK FTA affect its digital sovereignty and long-term interests.
