Contents
Introduction
With India’s digital economy projected to contribute nearly 20% of GDP by 2030 and Budget 2026-27 reinforcing semiconductor and AI investments, technological sovereignty has become a strategic imperative amid rising geopolitical weaponization of technology.
Weaponized Technological Interdependence
- Chokepoint Vulnerabilities: Dependence on foreign AI models, cloud services, and semiconductor ecosystems creates risks of sudden denial of access. The Anthropic model restrictions illustrate how commercial access can be overridden by national-security considerations. Example: AI blackout risk.
- Strategic and Geopolitical: Technology is increasingly becoming a tool of statecraft alongside sanctions and military power. Export controls on advanced chips and AI hardware demonstrate the rise of techno-nationalism. Example: US-China chip war.
- Economic: Digital disruptions can affect fintech, IT services, manufacturing automation, and e-governance. Economic Survey 2025-26 notes that innovation-led growth requires stronger technological capabilities and reduced external vulnerabilities. Example: Supply-chain shocks.
- National Security: Critical sectors such as defence, cyber-security, power grids, and telecom depend on digital infrastructure. External control over strategic technologies may compromise operational continuity. Example: Critical infrastructure risk.
- Data Sovereignty and Legal: Article 21’s evolving jurisprudence recognizes privacy as a fundamental right. Dependence on foreign-controlled platforms raises concerns regarding jurisdiction, surveillance, and data governance. Example: Cross-border data control.
- Diplomatic: Even trusted partnerships may not guarantee uninterrupted access to frontier technologies. Strategic autonomy requires diversification beyond any single technology bloc. Example: Multi-alignment diplomacy.

Why Complete Technological Self-Reliance Is Not Feasible
- The AI ecosystem spans: semiconductor fabrication, compute infrastructure, foundational models, data ecosystems and application layers.
- No country, including India, can efficiently dominate every layer. Excessive techno-protectionism may increase costs and reduce competitiveness. Example: Innovation slowdown.
Policy Choices for Achieving Digital Resilience
- Build Sovereign Digital Infrastructure: Accelerate sovereign cloud initiatives and indigenous data centres. Ensure sensitive government and defence workloads remain under Indian control. Example: Sovereign cloud architecture.
- Strengthen Frontier Technology Capabilities: Scale up the IndiaAI Mission, semiconductor mission, and National Quantum Mission. Focus on strategic sectors rather than attempting universal self-sufficiency. Example: Defence AI systems.
- Promote Open-Source Ecosystems: Reduce dependence on proprietary foreign platforms. Encourage indigenous adaptation of open-source AI models. Example: Open-source LLMs.
- Increase Domestic R&D Investments: India’s GERD remains around 0.6-0.7% of GDP, far below major innovation economies. Operationalize ANRF and deepen academia-industry collaboration. Example: Deep-tech innovation.
- Secure Semiconductor and Compute Supply Chains: Expand semiconductor manufacturing incentives. Diversify sourcing through trusted partnerships with Japan, Taiwan, Europe, and the US. Example: Trusted supply chains.
- Regulatory and Cybersecurity Preparedness: Strengthen CERT-In, Digital Personal Data Protection implementation, and AI governance frameworks. Adopt sector-specific cyber resilience standards. Example: Cyber resilience.
- Strategic Multi-Alignment: Leverage Quad, I2U2, Indo-Pacific partnerships, and Global South cooperation. Avoid dependence on a single technological ecosystem. Example: Diversified partnerships.
Way Forward
- Identify critical technologies through a National Technology Security Strategy.
- Adopt a strategic autonomy stack for AI, cloud, semiconductors, and cybersecurity.
- Shift from mere digital consumption to innovation-led technological leadership.
- Integrate NITI Aayog’s AI-for-All vision with national-security priorities.
- Develop trusted public digital infrastructure globally through the India Stack model. Example: DPI diplomacy.
Conclusion
Echoing Dr. A.P.J. Abdul Kalam’s vision in India 2020, genuine strategic autonomy in the digital age demands technological capability, resilient institutions, and innovation-driven sovereignty rather than dependence-driven efficiency.

