How would you characterize India’s foreign policy with respect to technology, and what are the primary objectives driving it?
In India, technology is increasingly finding greater space. This ranges from hard core security to weather estimations in the Indian Ocean Region. Broadly there are two policy objectives of technology in so far as foreign policy is concerned and both have to do with the element of national security, albeit applied and accommodated in different ways. Internally, technology finds one of the largest spaces in defence modernisation particularly in India’s efforts to enhance capacity and at a rapid pace. Technology can prove to be the turnaround if India has to drastically reduce its foreign dependence on arms imports and replace it with indigenous systems, much of which requires technological collaboration with or help from other countries.
Technology is slated to play a very important role in Indian regional policies with central objectives in maritime domain awareness, reconnaissance and most importantly border security and cyber security.
The emerging new spaces for technology in India, like other countries, lie in spaces like critical technologies cooperation, AI, digital currency, digitising trade, health and supply chains. In all these domains technology will help in improving know how and increase predictability.
National Security: India recognizes the importance of technology in ensuring national security and defense capabilities. It emphasizes building indigenous capabilities in critical areas such as cybersecurity, space technology, artificial intelligence (AI), and advanced computing. India seeks to collaborate with other nations on technology-related issues, including sharing intelligence, countering cyber threats, and promoting secure and responsible use of emerging technologies.
In the long run, we are bound to see a tech-pool in the Indo-Pacific in which a set of countries including the Quad members will invest to preserve and secure a rules-based order in the region. The ICET agreement between India and the US may be ushering that regional tech revolution.
In the domain of economic development, India aims to leverage technology to promote economic growth and development. The government has initiated various programs, such as “Digital India” and “Make in India,” to boost domestic manufacturing, attract foreign investment, and encourage innovation in sectors like information technology, electronics, and telecommunications. India seeks to position itself as a global hub for technology research, development, and entrepreneurship.
In diplomatic relations, India’s foreign policy in technology is also driven by its desire to strengthen diplomatic ties and enhance international cooperation. It actively engages in technology partnerships and collaborations with other countries, including through bilateral agreements, joint research and development projects, and participation in international forums. India seeks to foster mutually beneficial relationships, exchange expertise, and promote technological cooperation in areas like healthcare, education, agriculture, and renewable energy.
India places a strong emphasis on digital sovereignty, which involves safeguarding its digital infrastructure, data, and control over technological systems. It seeks to protect the privacy and security of its citizens, regulate digital platforms, and ensure that technology is used in a manner consistent with its national interests and values. India has implemented data localization policies, mandated the storage of certain sensitive data within the country, and introduced regulations for cybersecurity and data protection.
India recognizes the importance of technology in bridging the digital divide and promoting inclusive growth. It aims to provide affordable access to digital technologies, internet connectivity, and digital services, particularly in rural and underserved areas. India’s foreign policy in technology includes initiatives to collaborate with other countries and international organizations to promote digital literacy, capacity building, and the deployment of technology for social development.
In which sectors does India prioritize technological competition on the global stage, and what factors contribute to this focus?
India prioritizes technological competition on the global stage in several sectors. I would highlight 5-6 major sectors which are at the forefront of this competition.
- IT: India has a strong presence in the IT and software services sector. It is home to numerous multinational IT companies and has a significant outsourcing industry. India’s focus on IT and software services is driven by its skilled workforce, competitive cost advantage, and the government’s initiatives to promote digitalization and innovation. Besides, IT services have created a bridge between India and many countries.
- Pharmaceuticals and Biotechnology: India has a robust pharmaceutical industry and is a major player in the generic drug market globally. The country also emphasizes biotechnology research and development. A large population, low-cost manufacturing capabilities, a strong pool of scientific talent, and favorable intellectual property laws help India. However, it should be noted that India also faces a few legal hurdles in this area.
- Renewable Energy: India has set ambitious goals for renewable energy generation, including solar and wind power. The government has implemented various policies and incentives to promote clean energy technologies.
- Space and Aerospace: India has made significant advancements in space exploration and satellite technology. The Indian Space Research Organisation (ISRO) has achieved notable milestones, including successful missions to the Moon and Mars. How India advances its space capabilities will depend a lot on technology.
- Artificial Intelligence and Digital Innovation: India recognizes the importance of emerging technologies like artificial intelligence (AI) and is actively fostering a culture of digital innovation. The government has launched initiatives such as the National AI Strategy and Startup India to promote AI research, development, and entrepreneurship. Factors contributing to this focus include India’s large and digitally connected population, the need to address societal challenges, and the potential for economic growth.
- Electric Mobility: With a rising focus on sustainable transportation, India is prioritizing the development and adoption of electric vehicles (EVs). The government has introduced policies and incentives to promote EV manufacturing and infrastructure development. Factors driving this focus include the need to reduce pollution, dependence on imported fossil fuels, and to create a local EV ecosystem.
How have India’s relationships with major global powers, such as the US, China, and the EU, influenced its approach to technological competition?
Tremendously. Great power politics is shifting rapidly due to technological advances. Even as an intense tech competition is playing out between the US and China, middle powers like India have created their own space to tech utility and partnership. One has to understand that the tech competition with China for the US is hoisted on the idea that China is not a fair player in the tech ecosystem. Huawei and ZTE are just a few examples. China may have an exactly similar view of the US but the global tech ecosystem is being driven this rivalry. For India, China is not a natural partner and will not be so in the coming years because of the border situation and a conflict with China which has out bilateral relationship several decades back. On the other hand, the US-India trajectory is on an upward graph. In the past few years, India has partnered with the US on several fronts to gain as well as share technology. The Sino-Indian border conflict has perhaps strengthened tech cooperation between India and the US around border security – most importantly in the domain of information sharing. India on the other hand shares real time Maritime domain awareness data with the US in the Indian ocean. US supplied reconnaissance aircraft have helped India bolster its awareness and preparedness in the Indian ocean and the broader Indo-Pacific.
Can you discuss India’s participation in international technology alliances and initiatives, such as the Quad and other multilateral forums? What role does technological competition play in these partnerships?
International tech alliances are at a stage where they are just starting to form their agendas. The primary fulcrum around which these alliances will be built is likely to be the Indo-Pacific order. There are two which to my mind are very important, first, is the US-India initiative on critical and emerging technology (iCET) and the second is Chip 4 alliance of which India is not a member but could gain from an expanded group which includes India. Quad remains the overarching framework for tech cooperation between the four member countries and the potential basis of a future tech pool in the Indo-Pacific which provides tech support to infrastructure and lawful governance in the region.
How does India’s foreign policy support its domestic technology sector in terms of innovation, research, and development?
I think I have answered this question above. If you take out the four critical sectors you will get the answer to the above question
- Renewable Energy: India has set ambitious goals for renewable energy generation, including solar and wind power. The government has implemented various policies and incentives to promote clean energy technologies.
- Space and Aerospace: India has made significant advancements in space exploration and satellite technology. The Indian Space Research Organisation (ISRO) has achieved notable milestones, including successful missions to the Moon and Mars. How India advances its space capabilities will depend a lot on technology.
- Artificial Intelligence and Digital Innovation: India recognizes the importance of emerging technologies like artificial intelligence (AI) and is actively fostering a culture of digital innovation. The government has launched initiatives such as the National AI Strategy and Startup India to promote AI research, development, and entrepreneurship. Factors contributing to this focus include India’s large and digitally connected population, the need to address societal challenges, and the potential for economic growth.
- Electric Mobility: With a rising focus on sustainable transportation, India is prioritizing the development and adoption of electric vehicles (EVs). The government has introduced policies and incentives to promote EV manufacturing and infrastructure development. Factors driving this focus include the need to reduce pollution, dependence on imported fossil fuels, and to create a local EV ecosystem.
What are the main challenges and opportunities for Indian technology companies as they seek to expand internationally and compete with global tech giants?
Among the prominent challenges, first and foremost is the intense competition which Indian tech companies face from global tech giants that have established a strong presence and brand recognition worldwide. Competing against companies with vast resources, established customer bases, and advanced technologies can be challenging.
The second challenge is talent acquisition and retention. Attracting and retaining top talent is a significant challenge for Indian tech companies. Global tech giants often have the advantage of offering higher salaries, better perks, and greater opportunities for career growth, making it difficult for Indian companies to compete for skilled professionals.
Then there is the challenge of adapting to diverse international markets and understanding local consumer preferences, cultural nuances, and regulatory landscapes. Finally, Indian tech companies often face challenges related to intellectual property protection when expanding internationally. Strengthening intellectual property rights and effectively defending patents and copyrights in foreign jurisdictions can be a complex and expensive process.
For India its opportunities in this field come from its advantages globally and regionally. Cost advantage, skilled workforce, potential of a strong emerging market and favourable policies could actually turn it around for the Indian tech space.
How do India’s regulations and policies on data protection, privacy, and cybersecurity impact its position in global technological competition?
Striking the right balance between protecting data and privacy while promoting digital innovation and cross-border collaborations is key to enhancing India’s position on the global stage.
India’s data protection regulations, such as the Personal Data Protection Bill (currently under consideration), are aimed at safeguarding individuals’ personal information and establishing principles for the collection, storage, and processing of data. By ensuring data privacy and protection, India can enhance trust among global customers and businesses, which is crucial for cross-border data flows and international collaborations. Strong data protection measures can position India as a trusted destination for outsourcing and offshoring activities, encouraging global companies to choose Indian technology service providers.
For India, Striking the right balance between data protection and enabling cross-border data flows is important. Restrictive regulations that hinder the free flow of data can create barriers for international businesses and limit opportunities for Indian tech companies to collaborate with global partners. Adopting mechanisms such as adequacy agreements, standard contractual clauses, or embracing internationally recognized frameworks can facilitate smoother cross-border data transfers while ensuring data protection. An enabling environment that supports startups, research and development, and entrepreneurship enhances India’s competitiveness in the global technology landscape. Finally, Complying with industry standards and certifications ensures interoperability, quality assurance, and compatibility with global systems. Alignment with global standards can facilitate market access for Indian tech companies and promote collaboration with international partners.
How do regional dynamics, such as India’s relationships with neighboring countries affect its approach to technological competition?
India faces tremendous challenge in its hostile neighbourhood from Pakistan and China and how these countries could potentially employ technology. Some of this is already on display in intermittent drones which cross over to the Indian side with huge illegal consignment of drugs. China however remains the larger and long term threat with a potential tech-led build up at the Line of Actual Control – the border line with India. Some of the advancements which China has made in the domain of communication has opened space for India to catch up and build similar preparedness and deterrence. However, India holds a very important advantage apropos China compared to other countries. China’s penetration in Indian society and politics remains far low compared to other countries, which limits how China can use technology against India. Additionally, India has banned many Chinese apps and propaganda channels after the Galwan clash for good.
Finally, a battle for tech supremacy could play out in a third country in India’s neighbourhood, Sri Lanka being the latest example which allowed a China to dock a spy ship on its coast, endangering India’s communications. India itself has substantively build a its coastal surveillance radar network in the Indian ocean island countries impriving its tech-enables capabilities in the region.
How are Indian startups and private companies contributing to the growth of the space industry, and what challenges do they face in this sector?
Indian startups and private companies are involved in the development and launch of satellites, often led by India’s premier technology institutions the IITs. They are engaged in building small satellites for various purposes, such as communication, Earth observation, and scientific research. These companies are leveraging innovative technologies and approaches to provide cost-effective satellite solutions. Several private companies in India have entered the space launch services sector. They are developing launch vehicles and offering launch services for both domestic and international customers. These companies aim to provide more affordable and responsive launch options, catering to the growing demand for small satellite launches. Indian startups are focusing on developing applications and services that utilize satellite data. They are leveraging satellite imagery, data analytics, and remote sensing technologies to address various sectors, including agriculture, urban planning, disaster management, and environmental monitoring. These applications and services have the potential to drive economic growth and address societal challenges. Startups and private companies are actively engaged in research and development activities in the space sector. They are working on advanced technologies, propulsion systems, satellite communication, and space exploration. Their innovative approaches contribute to technological advancements and help India’s space industry stay competitive globally.
Looking ahead, how do you envision India’s foreign policy and position in the global technological competition evolving over the next 5-10 years?
In the next decade, I see India making a strong presence in the technology sector both in internal capacity building and external partnerships. In the realm of foreign policy, a tech-led democratic and peaceful order in the Indo-Pacific will drive India’s incentives and partnerships, especially with the Quad countries. India will also look to propel a growth oriented thrust to Africa which rides on technology. Beyond the above sectors highlighted, I expect India to make the most of the space in the semiconductor industry, especially at a time when US-China rivalry could prove beneficial for a range of middle powers. India’s policy focus on semiconductors has already begun in a big way which has been complemented by its partnerships with regard to the critical and emerging technologies.
Vivek Mishra is a Fellow with ORF’s Strategic Studies Programme in New Delhi.
