New Delhi [India], September 14 (ANI): India must actively work on developing its indigenous sovereign cloud technology, operating systems (OS), homegrown cybersecurity, and data-driven AI leadership at its core, given its over-reliance on US systems, India-based trade-focused think tank Global Trade Research Initiative (GTRI) has argued.

The think tank, in a report, asserted that India's economy and security are deeply reliant on US software, cloud, and social media platforms, creating a major vulnerability in times of geopolitical tensions.

Over-reliance on US systems, or for that matter, any country risks the possibility of a sudden cut-off of services or access to data, disrupting banking, governance, and defence systems, GTRI noted.

'India is dealing with a major external shock -- the United States has imposed 50 per cent tariffs on most Indian goods -- but a far deeper strategic risk lies in its digital dependence on U.S. technology firms,' GTRI has noted in the report.

Indian phones, computers, defence and government applications run on US systems, according to GTRI.

'A U.S.-ordered cutoff could instantly paralyse digital payments, tax filings, and government services nationwide,' it argued.

To address this, GTRI calls for the launch of what it termed 'Digital Swaraj Mission' by 2030. Digital Swaraj Mission, GTRI argued, could make India self-reliant in OS, cloud, cybersecurity, and social media by 2030.

Comparing with China and Europe, which have built or are in the process of building indigenous digital solutions, GTRI said 'India risks falling behind in tech sovereignty.'

Noting that India's data is its biggest bargaining chip, GTRI suggested that India must not give it away in trade negotiations. India's huge user base fuels US AI and ad revenues.

Citing unnamed policy analysts, GTRI said that they argue India should instead treat its data as a strategic resource, akin to oil or rare earth minerals.

'By insisting on local data storage, taxing digital transactions, and developing its own AI ecosystem, India could transform this vast data pool into a source of bargaining power in trade, technology, and security negotiations,' the GTRI report read.

Further in its report, GTRI noted that the risks are not limited to infrastructure.

'Social media platforms and their algorithms, largely controlled by U.S. companies, can influence public discourse. Without domestic oversight of these platforms, experts warn, India's democracy remains vulnerable to disinformation campaigns and attempts to inflame social divisions,' the GTRI report read.

Going ahead, India, according to GTRI, should chart its step-by-step roadmap to be rolled out in phases.

In the short term (1-2 years), India should mandate sovereign cloud hosting for critical data, launch a national operating system programme, and pilot Linux transitions in key ministries.

In the medium term (3-5 years), government systems should fully migrate to Indian software, and public-private cybersecurity consortia should be operational.

In the long term (5-7 years), India must achieve cloud parity, replace foreign OS in defence and critical sectors, and create globally competitive open-network platforms.

'India has the talent and the market to build sovereign capability. Just as UPI and ONDC changed the world of payments and commerce, we can do the same for core digital infrastructure,' the GTRI report noted in conclusion. 'In an era of tariffs, sanctions, and technology wars, sovereignty will be measured not just by territory or GDP but by 'who controls the code.' The message is clear: India must build a secure digital backbone now -- or risk being digitally switched off in the future.'

Over the past few months, India and the US have been negotiating for an interim trade deal. But, there are reservations from the Indian side on the US demand for opening up the agricultural and dairy sectors, among others.

India and the US initiated talks for a just, balanced, and mutually beneficial Bilateral Trade Agreement (BTA) in March this year, aiming to complete the first stage of the Agreement by October-November 2025.

US President Donald Trump had imposed reciprocal tariffs on dozens of countries with which the US has a trade deficit. For India, it is 50 per cent. Since assuming office for his second term, President Trump has reiterated his stance on tariff reciprocity, emphasising that his administration will match tariffs imposed by other countries, including India, to 'ensure fair trade'. (ANI)