India should develop its own sovereign digital solutions, reduce reliance on US systems: GTRI

India faces a big challenge: it’s too dependent on US tech like software, cloud services, and social media. This reliance could spell trouble for the country’s economy and security, especially during global tensions. A new report from the Global Trade Research Initiative (GTRI), a think tank focused on trade, warns that India needs to build its own sovereign cloud technology, operating systems (OS), homegrown cybersecurity, and AI systems right away.

The report points out how India’s banking, government, and defense sectors run on American platforms. If the US cuts off access—say, due to a trade spat—it could halt digital payments, tax filings, and even national services overnight. GTRI highlights that while the US has slapped 50% tariffs on most Indian goods, the real danger is this digital vulnerability. Indian smartphones, computers, and apps all depend on US systems, making the nation exposed.

To fix this, GTRI proposes the "Digital Swaraj Mission" with a goal of self-reliance by 2030. This plan would help India develop its own OS, cloud tech, cybersecurity tools, and social media alternatives. The think tank compares India to China and Europe, which are already pushing for their own digital solutions. Falling behind could mean losing control over India’s massive data treasure trove—the biggest bargaining chip in trade talks.

India’s huge user base powers US companies’ AI growth and ad money, but GTRI says the country should treat its data like a vital resource, similar to oil or rare earths. Instead of handing it over easily, India could demand local data storage, tax digital deals, and build a homegrown AI ecosystem. This approach would give India leverage in trade, tech, and security negotiations.

The risks go beyond tech infrastructure. US-controlled social media algorithms can sway public opinion and spread disinformation, threatening India’s democracy and social harmony. Without homegrown oversight, these platforms could fuel divisions.

GTRI lays out a clear roadmap to achieve digital sovereignty in phases:

• Short term (1-2 years): Mandate sovereign cloud for sensitive data, start a national OS program, and test Linux switches in key government offices.
• Medium term (3-5 years): Shift all government systems to Indian software and set up public-private teams for cybersecurity.
• Long term (5-7 years): Match global cloud standards, replace foreign OS in defense and vital sectors, and launch competitive open networks.

The report wraps up on an optimistic note: India has the talent and market size to pull this off, just like it did with UPI for payments and ONDC for commerce. In today’s world of tariffs and tech battles, true sovereignty means controlling your own digital code. Build it now, or risk getting cut off later.

Meanwhile, India and the US are in talks for a balanced Bilateral Trade Agreement (BTA), kicked off in March this year. They aim to wrap up the first phase by October-November 2025. But India is cautious about US demands to open up agriculture and dairy markets. President Trump, in his second term, keeps pushing reciprocal tariffs to level the playing field, including the 50% hit on Indian exports.

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