The digital sovereignty imperative in India’s Viksit Bharat journey

This article was published in The Economic Times Edge Insights.com on June 15 2026. Please click here to read the article.

India’s rise in the digital domain has been defined by transformative milestones such as the Unified Payments Interface (UPI) and Aadhaar. These innovations have not only accelerated fintech growth but have also expanded access, inclusion, and empowerment across the country.

Yet, beyond these visible successes lies a deeper transformation: digital infrastructure is rapidly emerging as the foundation of India’s economic and strategic sovereignty. As the nation advances toward its Viksit Bharat vision, it is crucial to understand and respond to the evolving dimensions of digital sovereignty, computational sovereignty, and selective capability building.

Digital sovereignty signifies a nation's ability to independently govern its digital infrastructure, data, and the technologies underpinning its economy and society. This includes the authority to set rules, manage data flows, and safeguard national interests in the digital realm. The development of UPI, a homegrown payments platform, serves as a prime example, ensuring that financial transactions abide by Indian regulations and remain insulated from external influences.

Computational sovereignty refers to the capacity to control and manage critical computing resources, including large-scale data infrastructure and artificial intelligence models. By strengthening domestic data infrastructure, India ensures that sensitive government and business data remain within national jurisdictions, thereby bolstering national security and operational resilience.

Selective capability building involves strategically developing expertise and infrastructure in targeted areas where India can achieve global leadership. Rather than replicating every aspect of the digital value chain, India focuses on domains such as chip design, leveraging its rich talent pool to generate high-value intellectual property without necessarily manufacturing every component.

Despite notable progress at the application layer, India's digital ecosystem continues to be fragmented. Initiatives in AI, semiconductors, and quantum computing often progress in silos, leading to inefficiencies and missed opportunities for synergy. Translating digital ambition into real-world outcomes remains complex. While platforms like UPI have revolutionised payments, sectors like commerce require the seamless integration of logistics, supply chains, and quality assurance i.e. objectives that extend beyond technology alone.

India's opportunity lies in identifying strategic layers for capability development and forging meaningful global partnerships. Instead of pursuing absolute self-reliance, India can focus on its strengths: chip design, AI applications, and more while collaborating internationally where required. This approach balances national interests with global integration, positioning India as a leader in select digital domains.

India stands at a pivotal moment in its digital transformation journey. Realising the vision of Viksit Bharat will require more than widespread technology adoption; it calls for strategic alignment and a deeper understanding that digital infrastructure is central to power, access, and opportunity. By defining core principles, reducing fragmentation, and advancing targeted policy measures, India can build resilient and integrated digital systems that empower its people and strengthen its position in the global digital landscape. The nations that successfully establish digital sovereignty will not only drive economic progress but will also shape the frameworks and rules of the century ahead.