How exposed is India to foreign tech?

Source: The post “How exposed is India to foreign tech?” has been created based on “How exposed is India to foreign tech?” published in “The Hindu” on 23 October 2026. How exposed is India to foreign tech?

UPSC Syllabus: GS 3- Science and Technology

Context: India has made significant progress in developing indigenous digital and strategic infrastructure, but it remains dependent on foreign-controlled technologies in several critical sectors. The risk is not limited to deliberate restrictions by foreign governments or companies; technical failures, software disruptions and dependence on foreign management systems can also affect national security and economic stability.

Major areas of India’s exposure to foreign technology

1. Satellite communications

1. India has licensed Starlink, Eutelsat OneWeb’s Indian subsidiary and Jio Satellite Communications to provide satellite communication services, but the article states that none had received the required security clearance for commercial satellite broadband as of October 16, 2026.
2. SpaceX controls Starlink, while Eutelsat OneWeb is effectively controlled by European interests and Jio’s partnership with SES does not give Jio control over the satellite network.
3. However, India’s dependence is limited because most ordinary telephone and internet traffic travels through terrestrial networks, while ISRO’s communication satellites and dedicated military satellites support broadcasting and strategic communications.

2. Satellite navigation

1. India’s NavIC system is particularly vulnerable because only three satellites were reported to be capable of providing positioning, navigation and timing (PNT) signals, whereas at least four are required for standalone positioning.
2. India therefore remains exposed to foreign navigation systems such as the US GPS, which retains the ability to deny military PNT services over specific areas.
3. ISRO’s difficulties in improving its launch rate have also affected NavIC’s operational reliability.

3. Cloud computing and information technology

1. Amazon Web Services (AWS), Microsoft Azure and Google Cloud provide infrastructure and managed services to thousands of Indian businesses and public institutions. Gartner projected Indian expenditure on cloud services to reach $17.5 billion in 2026.
2. Although the government operates its MeghRaj cloud through the National Informatics Centre (NIC), it also relies on private cloud providers, including foreign companies.
3. AWS Outposts technology under MeghRaj 2.0 may keep data physically within India, but continued dependence on AWS’s regional control systems for monitoring and software updates creates foreign management vulnerabilities.
4. The CrowdStrike software update incident demonstrated how a technical failure in foreign software could disrupt Indian airlines, airports and securities firms.
5. Greater adoption of open-source software, including India’s Linux-based Bharat Operating System Solutions (BOSS), can reduce dependence on proprietary technologies.

4. Digital payments

1. The National Payments Corporation of India (NPCI) operates UPI, giving India considerable independence from Visa and Mastercard in domestic digital payments.
2. However, the consumer-facing layer remains concentrated in foreign-controlled platforms such as Google Pay.
3. The closure of Google Pay would not disrupt UPI itself because users could shift to alternatives such as PhonePe, despite Walmart’s majority stake in the latter.
4. Nevertheless, foreign banking networks and the SWIFT messaging system expose Indian financial institutions to possible international sanctions and disruptions in cross-border payments.

5. Military equipment

1. India’s defence preparedness remains exposed to foreign suppliers because the country is the world’s second-largest importer of major arms during 2021–2025, with Russia accounting for 40% of its imports.
2. India also imports defence equipment from France, Israel and the US, while the indigenous Tejas fighter programme depends on US-made GE Aerospace engines.
3. The 1998 US sanctions prevented the delivery of 30 T800 helicopter engines ordered by Hindustan Aeronautics Limited (HAL), forcing it to procure replacements from a French manufacturer.
4. Delays in the supply of GE engines have also constrained Tejas production and postponed delivery deadlines.

Measures to strengthen technological self-reliance

1. India should strengthen ISRO’s launch capacity and restore NavIC’s full operational capability to reduce dependence on foreign navigation systems.
2. The government should promote indigenous satellite communication networks and ensure that critical infrastructure remains operational even if foreign providers restrict services.
3. India should expand domestic cloud infrastructure, develop indigenous management systems and encourage open-source software adoption across government departments.
4. The country should diversify defence imports, strengthen domestic research and development, and accelerate indigenous production of critical components such as aircraft engines.
5. India should maintain alternative digital payment channels and strengthen domestic financial infrastructure to mitigate the impact of foreign sanctions or disruptions.
6. Critical systems should undergo regular resilience testing, with backup arrangements and contingency plans for foreign service failures.

Conclusion: India is not equally dependent on foreign technology across all sectors. Domestic systems such as UPI provide substantial autonomy, whereas satellite navigation, cloud management and defence equipment remain significant vulnerabilities. Technological self-reliance should therefore focus not merely on domestic ownership, but also on operational control, indigenous capabilities and the ability to function independently during external disruptions.

Question: How exposed is India to foreign technology in critical sectors? Discuss the major vulnerabilities and suggest measures to strengthen technological self-reliance.

Source: The Hindu