Economic Survey Redefines Tech Sovereignty: Focus Shifts from Localization to Trust

• The Economic Survey questions the financial viability of large-scale data centers and their demands on resources, suggesting Budget 2026 may not offer subsidies.
• India's traditional view of technological sovereignty, focused on domestic building and forced localization, is challenged by the nature of modern digital flows.
• Digital platforms create significant opportunities for Indian MSMEs, demonstrating that technological sovereignty can coexist with global digital flows and mutualism.
• Start-ups multi-home across clouds and models to limit capital intensity, highlighting the value of diverse AI infrastructure and avoiding vendor lock-in.
• A new vision for India's tech sovereignty should prioritize trust, predictability, and investor-friendly policies, drawing lessons from Singapore's success.

Why It Matters: India's Economic Survey advocates a new tech sovereignty vision, prioritizing trust and predictability over forced localization.