August 2nd 2025 Editorial

Summary – What has been missed is India’s digital sovereignty

1. Context

  • The India–UK Comprehensive Economic and Trade Agreement (CETA) has been praised as a ‘gold standard’ by the Commerce Minister.

  • While attention focused on agriculture, labour, and manufacturing, the digital sector — critical to India’s national security — has been overlooked in public discussion.

2. Key Concerns

a) Source Code Disclosure

  • India has allowed foreign entities access to source code for goods/services — even in sensitive sectors.

  • Different regulators can now demand source code for inspections and approvals, covering telecom, medical devices, financial services, and safety-related sectors.

  • Under the UK FTA, this applies to all software, including critical infrastructure.

  • This sacrifices India’s right to regulate and secure its digital ecosystem.

b) Surrender of Critical National Resource

  • Agreement grants UK equal, non-discriminatory access to government data (‘Open Government Data’ principle).

  • Data is termed the “new oil” — its free access compromises India’s control over valuable datasets.

  • Such provisions erode strategic leverage and security.

c) Data Localisation and Cross-Border Data Flows

  • UK has long opposed strict data localisation laws; CETA reflects this stance.

  • Could undermine India’s efforts to retain data within national borders for privacy, security, and economic advantage.

3. Implications

  • Weakens India’s digital sovereignty — the ability to control its digital infrastructure, systems, and data.

  • May restrict India’s future ability to regulate Big Tech and secure critical sectors.

  • Risks turning India into a passive participant in the global digital order rather than a rule-maker.

4. Way Forward

  • Negotiate data and digital trade provisions with as much seriousness as agriculture or manufacturing.

  • Maintain regulatory autonomy to ensure security and public interest.

  • Build domestic capability in digital technologies to reduce dependency.

UPSC Mains Practice Question

GS Paper 2 – International Relations & GS Paper 3 – Internal Security
 “Discuss the challenges posed by international trade agreements to India’s digital sovereignty. Suggest measures to protect national interest while engaging in global digital trade.”

Summary – Deep ties: India needs to engage its neighbours more closely

1. Context

  • PM Narendra Modi’s visit to the Maldives was his first foreign trip in his third term.

  • The visit aimed to repair bilateral ties, strained during the Maldives’ previous government, and reaffirm India’s role as a key regional partner

2. Key Highlights of the Visit

  • Economic Assistance: India extended $50 million in budgetary support to the Maldives.

  • Infrastructure Projects: Renewed commitment to ongoing and new projects, especially in housing, roads, and energy.

  • Trade & Investment: Discussion on improving bilateral trade under the India–Maldives Trade Agreement.

  • Security Cooperation: Reaffirmed defence and maritime collaboration, crucial given the Maldives’ strategic location in the Indian Ocean.

3. Strategic Importance

  • The Maldives is central to India’s Neighbourhood First policy and Security and Growth for All in the Region (SAGAR)

  • Strategic location along critical Indian Ocean sea lanes makes it a valuable partner in maritime security.

  • Preventing Chinese strategic inroads remains a priority.

4. Challenges

  • Past tensions over India’s military presence and perceptions of interference.

  • Competition from China’s Belt and Road Initiative (BRI) investments.

  • Need to maintain goodwill while avoiding over-dependence concerns.

5. Way Forward

  • Deepen Economic Linkages: Enhance bilateral trade, tourism, and investment.

  • Sustain People-to-People Ties: Scholarships, healthcare, and cultural exchange.

  • Maritime Security: Strengthen joint patrolling, capacity building, and anti-piracy measures.

  • Balanced Diplomacy: Engage without triggering sovereignty concerns.

UPSC Mains Practice Question

GS Paper 2 – International Relations
 “Discuss the strategic significance of the Maldives for India’s maritime security and regional diplomacy. How can India strengthen ties while countering external influence in the region?

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