New Delhi : India’s evolving digital economy and its global trade engagements have come under fresh political scrutiny, with concerns being raised over how data sovereignty will be safeguarded in upcoming agreements. The debate highlights a broader tension between enabling cross-border digital trade and protecting national control over critical data resources.

Congress leader Rahul Gandhi on Monday questioned the government’s approach to data protection in the context of the proposed India-US trade deal. He asserted that India should be leading the global technology race but instead lacks clarity on how citizens’ data will be secured.

He said, “India’s data belongs to its people and in the AI economy, it can be one of its biggest strengths - to build AI, grow companies, and create jobs.”

Raising a series of questions on the agreement, Rahul Gandhi stated, “So I asked the government some important questions about the recent trade deal with the US:- What does ‘reducing barriers’ with the United States mean for our data? Will our health data, financial data, and government databases stay in India? Can India still require foreign companies to store data here and use it to build our own AI?”

He further added, “Every question on our data sovereignty, health data, AI, and local data storage gets the same treatment: ‘framework’, ‘balance’, ‘autonomy’ - big words, zero specifics.” Alleging lack of transparency, he said the government is not disclosing what it may be conceding in negotiations and emphasized that citizens deserve accountability over how their data is handled.

In response, Minister of State for Electronics and Information Technology Jitin Prasada highlighted India’s strong digital economy, noting that the IT sector has revenues exceeding 280 billion US dollars and exports of 225 billion US dollars in FY 2024-25, employing over 60 lakh people.

He stated that India remains committed to expanding digital trade partnerships through Free Trade Agreements with countries such as the UAE, UK, and EU, each including dedicated digital trade provisions. On the ongoing India-US Bilateral Trade Agreement (BTA), he said it aims to create a free, fair, and dynamic digital ecosystem.

Prasada said, “India and the United States have established a framework for an interim agreement that reflects both nations’ shared commitment to fostering an open, and equitable digital trade environment.” He added that India has retained regulatory autonomy in data governance and that such agreements do not restrict the country’s ability to manage its data within the legal framework.

The exchange underscores a growing policy debate over balancing global digital integration with national data control. As India positions itself in the AI-driven economy, questions around transparency, data localisation, and strategic autonomy are likely to remain central to both political discourse and policy decisions.