India-U.K. Free Trade Agreement: A Digital Surrender?
📌 Context:
The India–U.K. Free Trade Agreement (FTA), also referred to as the Comprehensive Economic and Trade Agreement (CETA), has been celebrated by the Union Minister of Commerce as a “gold standard” for future trade deals. However, beneath this celebration lies a deep compromise on India’s digital sovereignty, which has largely gone unnoticed in public discourse and media scrutiny.
🖥️ What’s at Stake? India’s Digital Sovereignty
While the agreement claims to safeguard sensitive sectors like agriculture and manufacturing, it has made critical concessions in the digital domain, which is emerging as the core of economic and national security frameworks in the 21st century.
🔍 Key Issues in the Digital Sector
1. Source Code Disclosure Rights Compromised
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India gave up its sovereign right to seek ex ante (prior) access to source code for foreign digital products and services, even in sensitive sectors.
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This access is essential for ensuring regulatory compliance, cybersecurity, and safety checks.
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Even the United States, a pioneer of source code protection clauses, withdrew this position recently due to national security concerns.
❗ Why it matters: Without source code access, Indian regulators cannot inspect or intervene in potentially harmful software systems embedded in critical infrastructure, AI, telecom, or health.
2. Open Government Data – A Dangerous Giveaway
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India agreed to provide equal and non-discriminatory access to U.K. firms for open government data.
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In today’s digital economy, data is a strategic resource — the backbone of Artificial Intelligence.
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Such concessions weaken India's ability to build a competitive edge in AI using its own data.
🛑 This isn’t just about transparency — it’s about surrendering a national asset.
3. Backdoor to Data Localisation Rollback
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While India appears to have stood firm on data localisation and free flow of data, it has agreed to a "consultation clause".
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This clause obligates India to offer equivalent digital concessions to the U.K. if it gives them to other nations in future.
⚠️ This undermines India’s longstanding digital trade positions at WTO and elsewhere.
💣 The Real Risk: Irreversible Digital Commitments
Digital trade deals are not like commodity trade — their rules, once agreed upon, can’t be rolled back easily.
By conceding on key principles, India:
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Supports a Western-led digital rulebook aligned with Big Tech interests.
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Forfeits the opportunity to define its own digital future.
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Jeopardises the ability to become a digital superpower and protect its citizens' data.
🇮🇳🔐 Why Did India Agree?
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No strong domestic political constituency exists for digital sovereignty — unlike agriculture or labour.
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Negotiators may have been technically unequipped or lacked access to policy clarity and political direction.
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There is no national strategy or vision for digital industrialisation, leading to reactive, not proactive, negotiation.
📊 Comparative Global Standpoints:
| Country | Position |
|---|---|
| 🇺🇸 United States | Rolled back free data flow & source code clauses |
| 🇨🇳 China | Strong digital localisation, national firewalls |
| 🇪🇺 EU | GDPR and firm cross-border data policies |
| 🇮🇳 India | Now compromising under bilateral FTA pressure |
🛣️ Way Forward: A Digital Doctrine for India
✅ 1. Develop a Comprehensive Digital Sovereignty Policy
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Define clear red lines on data, software, AI, and infrastructure.
✅ 2. Create a National Digital Industrialisation Strategy
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Promote indigenous digital ecosystems, platforms, and AI.
✅ 3. Include Tech Experts in Trade Negotiations
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Ensure all trade talks are backed by digital policy experts, not just economists and diplomats.
✅ 4. Prioritise Strategic Autonomy in Digital Rulemaking
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India must lead or co-lead the development of global digital governance norms, not simply adopt Western standards.
✅ 5. Raise Public & Political Awareness
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Educate stakeholders on how digital trade affects national sovereignty — just like land, water, and air.
🧠 Conclusion:
India's digital concessions in the U.K. FTA may have set a precedent that weakens its ability to regulate, innovate, and secure its digital ecosystem. The time to act is now — before India slips from being a digital democracy to becoming a digital colony.
“Digital sovereignty is national sovereignty. Without it, freedom is just a slogan.”
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