By Rubal Sahni
India’s digital journey over the past 10-15 years tells us a remarkable story of transformation. Corner shops now accept UPI payments, farmers check weather apps, people use FASTag for toll, travelers use DigiYatra while check-in at airports, and grandparents connect with grandchildren through video calls. The list is increasing with over a billion citizens creating digital footprints every day. Therefore, the nation has evolved into a genuine digital powerhouse. However, we now face an exciting yet challenging next episode—the AI revolution.
This widespread digitalization has created a treasure trove of uniquely Indian data—shopping habits, travel patterns, healthcare needs, entertainment preferences. This data goldmine can power incredible AI innovations. But as the country moves forward, a critical question emerges: Are we unwittingly trading our digital sovereignty for technological advancement?
The New Digital Economy
The global economy today runs on this digital harvest. Every tap, swipe, click and voice command from India’s 845 million internet users–spending nearly five hours online daily and carrying out more than 80 million e-commerce transactions–generates roughly 20 gigabytes of personal data every year — this is enough to fill about 4,000 books for each citizen.
Think of all this data like raw ingredients leaving a home kitchen. Instead of being cooked at home, these digital ingredients—photos, messages, search histories, and shopping preferences—travel thousands of miles away to giant tech kitchens overseas. These data become training set to overseas data centers and return it with tremendous markup in form of a service to us. When we want to taste the finished dishes—like AI assistants—we pay premium prices for meals made from our own ingredients. This one-way street leaves a question mark: are we witnessing the AI colonization of Indian data?
The worrisome aspect of this exchange is our willing and passive participation as we hand over our valuable digital ingredients. When that little pop-up appears and we quickly hit “I Agree” or download an app labeled “free,” most of us don’t realize we are giving away something worth far more than we are getting back. This leads us to an important truth about today’s digital marketplace.
The Hidden Cost of “Free” Services
In today’s digital landscape, the phrase “If you’re not paying for the product, you are the product” resonates more than ever. The so-called free services—ranging from social media platforms to search engines and generative AI tools—are not truly free; they thrive on the data we provide. This data, rich with cultural insights, language patterns, and consumer behaviors, is a goldmine for overseas companies.
As we engage with these platforms each day, questions arise about the fate of our data. How is it being utilized now, and what implications might it have in the future? The uncertainty surrounding these issues is palpable, even the long-term implications of these data relationships remain vague, leaving us to wonder if the convenience of today might not become costlier tomorrow.
The real question isn’t about saying yes or no to AI. It’s about how we can use these new technologies while making sure India benefits fairly and maintains control of its own digital future. The good news is that we don’t have to choose between rejecting technology or giving away everything—there’s a sensible middle ground.
Finding Balance: A Middle Path Forward
Finding the balance requires a nuanced, multi-layered approach — Think of it like building a smart home: we want the benefits of connected devices, but we wouldn’t give strangers unlimited access to control everything. Here’s how we can strike that balance:
- Treating Data Like Water
Just as water is managed carefully through reservoirs, dams, and distribution networks, India must create systems to harness, protect, and distribute its data resources wisely.
- Developing A Home-Brewed AI Ecosystem
Nurturing local AI talent, funding indigenous research and incentivizing Indian organizations to build, innovate, and thrive is the key. This means developing homegrown AI that understands our languages, respects our values, and solves our unique problems.
- Fostering a data-smart society
Just as we teach children the value of money, we must help every Indian understand their data’s worth. When people realize their digital footprints are valuable currency—not just meaningless trails—they will make smarter choices.
A Vision for Indian AI Leadership
Looking ahead to 2030, India’s biggest strength in the AI world will be its amazing mix of people, culture, languages, and stories. With so much rich data and talent, India can create AI tools that truly fit the needs of the citizens.
This approach does not mean closing India’s digital borders or rejecting global collaboration. Instead, policymakers must focus on establishing clear, transparent rules that empower partnerships to be equitable, with mutually beneficial data flows, where Indian citizens and businesses secure a fair share of the value generated.
Imagine a village health worker in a small town, using AI tools to spot early signs of illness before problems grow worse. Picture a farmer watching the sky and checking AI forecasts that predict the rains, deciding the best time to plant seeds. Think of a student in a remote village, able to learn through AI programs that speak their own language and explain things in ways that make sense to them. These are not far-off dreams anymore. When AI respects local customs, languages, and values, it stops being just machines and data—it becomes a helpful partner that lifts communities, making life easier, safer, and richer for everyone.
Ultimately, the goal should not simply be to adopt the latest technologies, but to ensure they work for India. Our data, after all, should build India’s future, not just the future of technology.
The author is AVP – India and Emerging Markets at Confluent