Congress leader Rahul Gandhi on Monday voiced concerns over India’s data sovereignty, arguing that the country should be at the forefront of the global tech race but is instead being left unclear about how its data will be safeguarded. As Leader of Opposition in the Lok Sabha, Gandhi emphasized that India’s data belongs to its citizens and could be a major asset in the AI-driven economy—helping to build technology, grow businesses, and generate employment. He said he had asked the government key questions regarding the recent trade deal with the United States, including what “reducing barriers” would mean for India’s data, whether sensitive data like health, financial, and government records would remain within the country, and whether India could still require foreign firms to store data locally for domestic AI development.

He criticized the lack of clarity, stating that citizens deserve transparency and accountability on how national data is handled, and insisted that India should have control over its data to secure a better future. In questions raised in the Lok Sabha on April 1, Gandhi also sought clarification on how the government plans to balance commitments under the India-US joint statement on digital trade with India’s data localization rules, cross-border data regulations, and overall digital framework. He further asked whether any policy changes were being considered to protect regulatory independence and whether such agreements might limit India’s ability to mandate local data storage, regulate AI, or restrict foreign access to critical digital infrastructure.

He questioned whether key sectors such as financial systems, digital identity, healthcare databases, telecom networks, and AI datasets would be affected, and what safeguards are in place to ensure India can continue using domestic data for indigenous AI development, value creation, and strategic digital autonomy.

Responding in writing, Minister of State for Electronics and Information Technology Jitin Prasada highlighted India’s strong IT sector, with revenues exceeding $280 billion and exports of $225 billion in FY 2024-25, employing over 60 lakh people. He noted that digital trade is a crucial part of the economy and that India is actively expanding partnerships through free trade agreements with countries like the UAE, UK, and the European Union, all of which include digital trade provisions.

Prasada added that the ongoing India-US Bilateral Trade Agreement aims to promote a fair and dynamic digital ecosystem while deepening cooperation in digital trade. He assured that India has maintained its regulatory autonomy in data governance and that such agreements do not limit the country’s ability to manage its data within its legal framework.