India’s tech rise masks a harsh truth. We need to avoid US-China dependency trap
India’s digital success story with its digital stack masks a deeper fragility: our core tech backbone, from chips to the cloud and beyond, is still foreign-owned. As the US and China weaponize technology, India must break free of dependence. Our national interest demands digital sovereignty.
The story of India’s rise in technology is compelling. Aadhaar, the Unified Payments Interface (UPI), Indian space exploration and defence innovation have all showcased our ability to think big and deliver on ambitious goals. But behind these accomplishments lies a sobering reality: India’s digital backbone—from search engines, social media and the cloud to chips and servers—is still dominated by the US and China.
Investment firm Bernstein, which recently did an analysis, puts it plainly: apart from our digital public infrastructure, we ‘own’ little. And in a world where technology is increasingly wielded as a geopolitical weapon, this dependence leaves the country vulnerable.
Prime Minister Narendra Modi rightly makes strong pitches for Swadeshi and being ‘vocal for local.’ But between Google, Microsoft, Amazon and Oracle, all of which are leading US-based global players, nearly every layer of our digital backbone is foreign-controlled. From cloud to search and messaging to social media, we remain tethered to US platforms. All our data sits in the cloud and with our vendors.
On the hardware side—servers, laptops, networking gear and semiconductors—we are reliant on China. The bottom line is that we are squeezed between two tech superpowers that would prefer to keep India dependent rather than see us rise on our own.
Consider what happened with Nayara Energy, a Russian-Indian joint venture, when Microsoft—in compliance with Western sanctions—cut off its software access not so long ago. Suddenly, Nayara’s employees did not even have email.
Imagine a similar disruption applied across Indian enterprises or government departments, most of which rely on Microsoft or Google for their daily operations. The result would be catastrophic. We must act fast to avert any such eventuality.
During the recent security tensions that peaked during Operation Sindoor, we experienced first-hand the value of sovereign technology. We relied on indigenous drones, space systems and NavIC—our own navigation platform—instead of GPS, which adversaries could spoof or shut off. That experience reinforced the reality that technological self-reliance is not just about growth, it is also about national security.
Self-reliance is not about assembling imported kits. If our drones run on Chinese operating systems, they stay vulnerable. If our cloud is hosted on US platforms, the imposition of new sanctions can shut us down.
Washington and Beijing have shown their proclivity to weaponize their supply chains, whether it is done through export bans on semiconductors, restrictions on rare earths or supply prohibitions on advanced quantum computers. Can we afford to be caught in such a crossfire?
What we face today is not unlike the East India Company moment, when foreign enterprises that came to trade with us ended up ruling the subcontinent. Google commands 97% of all Indian searches today. Our daily lives and transactions are mediated by platforms headquartered abroad—YouTube, WhatsApp, Amazon.
Even when tech opportunities arose in the past, foreign giants were quick to fill the gap. After TikTok was banned, we did not see a strong Indian alternative arise; instead, Instagram Reels captured that market.
Bernstein warns Indian artificial intelligence (AI) startups have “no chance" against Silicon Valley giants, which enjoy unfettered access to the Indian market. Regulatory hurdles or bureaucratic roadblocks for local innovation make it easy for foreign players to sneak in.
Operation Sindoor underscored the hard truth that in a cross-border crisis, we are on our own. With China covertly backing Pakistan and global powers posturing, India leaned on its own indigenous tech systems. The pandemic was a showcase of Indian innovation—from vaccine delivery platforms to digital payments—that kept the economy functioning. These episodes prove that when pushed, India can rise to the occasion. But we cannot leave preparedness to chance.
Building true self-reliance: India needs end-to-end capacity across critical technologies—from semiconductors, AI and its foundational models all the way to cybersecurity, 5G/6G, defence systems, quantum computing, biotech, clean energy, robotics, operating systems, databases and enterprise software.
Between 2013 and 2024, private AI investment in the US totalled $471 billion. China committed $119 billion. India’s figure was $11.3 billion. Without serious funding and policy support, our startups cannot compete with the rest of the world’s AI players.
We also need bulk government orders for indigenous systems, low-cost capital and a level playing field for local innovators. A Technology Sovereignty Council, chaired by the prime minister, could set out 10–12 priority areas and challenge Indian engineers and startups to achieve leadership within a given time frame.
History teaches us resilience and the importance of self-reliance. After the 1998 Pokhran nuclear tests, sanctions crippled our access to space and atomic research inputs. Yet, India built its own systems and today the Indian Space Research Organisation (ISRO) competes globally. The same spirit must guide our technology journey now.
Home to about a billion digitally connected citizens, India cannot afford to be a digital colony. Our demographic dividend, startup energy and innovation capacity grant us the ability to create indigenous platforms that are capable of competing with the world’s best. This belief must be matched with policy, investment and execution.
Tech sovereignty is a goal that must be achieved and it can be done with faith in Indian systems, strategic urgency and a commitment to becoming a product-creating nation. Anything less and we risk floating around without making an impact in a world where technology is power.
These are the author’s personal views.
The author is co-founder, HCL, and chairman, EPIC Foundation, and the National Quantum Mission.
topics
