Introduction

In the 21st century, data is often called the new oil. It fuels economies, drives innovation, and influences everything from business decisions to national security. However, as individuals and organizations generate more digital footprints, a fundamental question emerges—who owns your data?

In India, data sovereignty has become a pressing concern as the country undergoes rapid digital transformation. With the proliferation of digital services, cloud computing, and artificial intelligence (AI), Indian citizens and businesses generate vast amounts of data daily. Yet, much of this data is controlled by foreign corporations, raising issues of privacy, security, and national autonomy.

This article explores the concept of data sovereignty in the Indian context, analyzing the legal framework, challenges, and potential solutions for a more equitable data governance system.

What is Data Sovereignty?

Data sovereignty refers to the principle that data is subject to the laws and governance structures of the country where it is generated. In practical terms, this means:

Data Localization – Keeping citizen and business data within national borders.

Regulatory Control – Ensuring that Indian laws govern how data is collected, stored, and shared.

Autonomy in Data Usage – Empowering citizens and businesses to control their personal and operational data.

In India's case, data sovereignty is crucial due to the dominance of global tech giants like Google, Amazon, Meta, and Microsoft, which host a significant share of Indian data on foreign servers. This reliance on external entities raises risks related to surveillance, cyber threats, and the exploitation of Indian data for commercial gain.

The State of Data Ownership in India

1. The Role of Big Tech

Most Indian citizens use WhatsApp, Google Drive, Apple iCloud, Amazon Web Services (AWS), and Microsoft Azure, storing their personal and professional data in global cloud infrastructure. While these services provide convenience, they also mean that Indian data is largely stored in servers outside India, primarily in the U.S. and Europe.

This creates a paradox—Indians generate data, but do not own or control it. Instead, tech companies dictate how data is stored, shared, and monetized, often without user consent.

2. Government’s Push for Data Localization

Recognizing this imbalance, the Indian government has taken steps to enforce data sovereignty through policies such as:

The Digital Personal Data Protection (DPDP) Act, 2023 – India's latest data protection law regulates how personal data is processed and stored but allows exemptions for government agencies, raising concerns about state surveillance.

The Reserve Bank of India (RBI) Data Localization Mandate – Requires payment companies like Visa, Mastercard, and PayPal to store financial data locally.

The Draft National E-Commerce Policy – Proposes stringent data-sharing rules to ensure Indian businesses do not rely excessively on foreign platforms.

Despite these efforts, challenges remain in implementation and enforcement, particularly given resistance from global tech companies.

3. The U.S. and China Models of Data Sovereignty

India faces a critical choice in shaping its data sovereignty policy. There are two dominant global models:

The U.S. Model (Market-Driven) – Private companies dominate data ownership, with minimal government interference.

The China Model (State-Controlled) – The government exercises strict control over domestic data, limiting foreign access.

India is striving for a middle ground—one that protects citizens' privacy while promoting a free and open digital economy. However, it remains to be seen how this balance will be achieved.

Key Challenges to Data Sovereignty in India

1. Lack of Infrastructure for Data Localization

Storing vast amounts of data within India requires massive investments in data centers, cloud storage, and cybersecurity measures. While companies like Reliance Jio and Adani are building domestic cloud infrastructure, India still relies heavily on foreign cloud providers like AWS, Google Cloud, and Microsoft Azure.

2. Surveillance vs. Privacy

The Digital Personal Data Protection Act, 2023, while promoting data sovereignty, also grants the Indian government broad powers to access personal data without consent. This raises concerns about mass surveillance and the potential misuse of data by state authorities.

Can a government demand control over data in the name of sovereignty while ensuring individual privacy rights? India has yet to strike the right balance.

3. Data as a Tool for Corporate Control

Foreign tech giants generate billions in revenue from Indian data without sharing the benefits with Indian users. For example:

Google and Facebook monetize Indian data through targeted advertising, profiting from user behavior without compensating individuals.

Amazon collects vast amounts of Indian e-commerce data, giving it a competitive edge over local businesses.

Unless India enforces fair data-sharing policies, Indian users and businesses will remain passive consumers rather than active beneficiaries of their own data.

4. Digital Divide and Data Ownership

A large portion of India’s population, especially in rural areas and among marginalized communities, does not fully understand their data rights. Low digital literacy makes people vulnerable to exploitation by tech companies, financial frauds, and government surveillance.

Data sovereignty must go hand in hand with public awareness campaigns on data privacy, digital rights, and fair data usage.

The Way Forward: Strengthening India’s Data Sovereignty

1. Building Domestic Digital Infrastructure

India needs to invest in domestic cloud storage, data centers, and AI-driven analytics to reduce dependency on foreign entities. Companies like Tata Communications, Reliance Jio, and Adani Enterprises are already working on Indian cloud solutions, but large-scale investments are required.

2. Open Data Economy and Fair Profit Sharing

To ensure that Indians benefit from their data:

The government should tax Big Tech on revenues generated from Indian data.

Users should have the right to monetize their own data through data cooperatives where individuals pool their data and collectively negotiate its value.

Indian businesses should have preferential access to anonymized domestic datasets to fuel AI innovation without relying on foreign data sources.

3. Strengthening Legal Protections for Individuals

While data localization laws protect national sovereignty, India must also strengthen individual data rights by:

Implementing stricter consent-based data collection rules.

Giving citizens control over how their data is shared with private companies and the government.

Creating an independent data protection authority to regulate both state and corporate misuse of data.

4. Global Collaboration on Data Governance

India must engage with global coalitions like the Global Partnership on AI (GPAI) and Digital Public Goods Alliance to promote fair and equitable data governance frameworks that do not disproportionately favor Western tech monopolies.

Conclusion: Who Owns Your Data?

The battle for data sovereignty in India is far from over. While the government is pushing for stronger localization laws, corporate resistance, digital illiteracy, and privacy concerns present significant hurdles.

Ultimately, true data sovereignty means empowering individuals—not just states or corporations—to control their digital identities and benefit economically from their own data.

As India navigates this complex landscape, the question remains: Will data sovereignty serve the people, or will it remain a tool for corporate and government control? The answer will shape India’s digital future.