Digital Colonialism: Need, Challenges & Way Ahead

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“In the age of Artificial Intelligence and Big Data, those who control the code, control the world.” – A modern rendition of digital power dynamics aptly captures the growing threat of digital colonialism.
India, as the fastest-growing major economy and a hub for digital innovation, stands at a critical juncture. Former NITI Aayog CEO and G20 Sherpa Amitabh Kant’s warning against becoming a “technological colony” and his emphasis on sovereign technological innovation underscore the urgent need for an Atmanirbhar Digital Bharat that preserves civilisational identity while embracing global leadership in technology.

Understanding Digital Colonialism

Definition: A contemporary form of dominance where tech giants from the Global North control the digital infrastructure, data, and platforms of developing nations.
Key Features: This involves cross-border data exploitation, reliance on foreign digital laws & technologies, monopolisation of AI & cloud services, and cultural-political influence of global digital platforms.
Essence: Unlike traditional colonialism, this represents a silent takeover—where power resides not in land but in algorithms, data, and digital control.

Need for Digital Sovereignty and Localised Innovation

Massive Data Generation, Limited Control: India generates over 20% of global data, yet only 10% is stored domestically, with the remainder housed in foreign-owned data centers.
- Data is the new oil, but India is outsourcing its refinery.
Growing Digital Economy: India’s digital sector is expanding at over 15% annually, contributing approximately 7–8% to GDP, but remains skewed towards IT exports and platform dependency.
- India exports IT talent but imports digital platforms.
National Security & Law Enforcement: Local data storage ensures quicker access for cybercrime investigations and mitigates risks related to foreign surveillance or espionage.
Strategic Tech Independence: Initiatives such as the Semiconductor Mission (2021) seek to achieve self-reliance in hardware and chips, which is vital for digital sovereignty.
Global Precedent and Influence: India’s push for digital sovereignty could inspire other Global South nations to regain control from digital monopolies and misinformation.

Opportunities for India in Sovereign Technological Advancement

AI-for-Bharat Revolution: Empowers the creation of multilingual, inclusive AI solutions tailored to India’s socio-cultural diversity, bridging the language-technology gap for rural users.
Integration of AI with Digital Public Infrastructure: The integration of AI with platforms such as Aadhaar, UPI, and CoWIN can facilitate anticipatory governance.
- E.g., early disaster warnings, personalised welfare schemes, and fraud detection.
Digital Sovereignty through Techno-Nationalism: Encourages the creation of indigenous platforms using Indian data, reducing reliance on foreign tech ecosystems and aligning with national security goals.
Boost to Atmanirbhar Bharat in Deep Tech: This drives innovation in AI chips, local LLMs, battery storage, and green hydrogen, ensuring cost-effective and context-relevant technologies.
Leadership in Global South Tech Diplomacy: India’s DPI stack can act as a model for other developing nations, enhancing South- South cooperation and promoting human-centric globalisation.

Challenges to Realizing a Self-Reliant and Ethical Tech Future

Risk of Surveillance Capitalism and Data Misuse: The absence of robust data governance can lead to the exploitation of personal data by corporations or the government.
Hardware Constraints & Limited Infrastructure in Rural India: The Shortage of graphics processing units (GPUs), cloud infrastructure, & digital access limits reach of AI in rural regions.
Persistent Digital Divide and Low Awareness of AI Literacy: Socioeconomic disparities hinder equitable access to digital tools and understanding of AI’s implications.
Brain Drain and Inadequate Investment in R&D: India’s top AI talent often moves abroad for better opportunities and limited domestic funding in deep tech.
Intellectual Property Rights vs. Open-Source Innovation Dilemma: Balancing the principles of open innovation with fair incentives for creators and strong IPR frameworks continues to be challenging.

Way Forward: Reform–Perform–Transform

Data Sovereignty: Enact and implement the Digital Personal Data Protection Act (DPDP) with strict data localisation requirements.
AI Development: Launch National AI Mission 2.0 focused on creating low-resource, energy-efficient, multilingual models based on Indian datasets.
Startup Ecosystem: Enhance support through SIDBI, FFS, and the Startup India Seed Fund Scheme in Tier 2 and Tier 3 cities; simplify patent and intellectual property rights (IPR) procedures.
Digital Infrastructure: Accelerate the BharatNet initiative, the rollout of 5G, and PM-WANI to ensure universal, affordable internet access.
Ethical Tech Governance: Mandate AI audits and enforce ethical design principles while promoting ESG-compliant innovation.
Global Tech Diplomacy: Champion the Global South Digital Dialogue, promote the India Stack, and advocate for a new global tech order centered on equity.

As India enters the Techade, the challenge is to innovate ethically, inclusively, and indigenously. In the spirit of “Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas,” it is the right time to transform our demographic dividend into a digital dividend. India must become a vishwa-guru in AI, not by mimicking Western models but by creating technologies that resonate with Indian values, serve rural Bharat, and reflect civilisational wisdom.

Reference: LiveMint

PMF IAS Pathfinder for Mains – Question 140

Q. What do you understand by the term “Digital Colonialism”? Discuss its implications for India’s digital sovereignty. Suggest measures to promote indigenous and ethical technological development. (150 Marks) (10 Marks)

Approach

Introduction: Digital Colonialism refers to foreign control over a nation’s digital infrastructure, platforms, and data, resulting in technological dependence.
Body: Discuss its impact on India’s digital sovereignty, localised innovation (startups), and the marginalisation of Indian languages due to the dominance of Western platforms.
Conclusion: Emphasize the importance of indigenous, ethical technology development to create a resilient, inclusive, and sovereign Digital Bharat.