India-UK Digital Trade Deal: Balancing Market Access and Digital Sovereignty
UPSC Relevance
Prelims: Indian Economy (International Trade, Free Trade Agreements - FTAs, Digital Economy), Indian Polity & Governance (Data Protection, Digital Sovereignty, Digital Personal Data Protection Act).
Mains:
GS Paper 3: Indian Economy and issues relating to planning, mobilization of resources, growth; Science and Technology- developments and their applications and effects in everyday life (Digital Economy).
GS Paper 2: Government policies and interventions for development in various sectors; Bilateral, regional and global groupings and agreements involving India.
Essay: Topics related to globalization, digital economy, or national sovereignty.
Key Highlights from the News
Main Agreement: Chapter 12 on Digital Trade, part of the new India-U.K. Comprehensive Economic and Trade Agreement (CETA).
Main Debate: Supporters argue this agreement is a strategic step guiding India into the global digital economy, while critics say it weakens India's digital sovereignty.
Key Wins of the Agreement ("Digital Wins"):
Recognition for electronic signatures and contracts.
Continued exemption of customs duty on electronic transmissions (like software exports).
Promotion of regulatory sandboxes for testing new technologies.
Concerns of the Agreement ("Digital Costs"):
Restrictions on the government's power to request source code from companies.
Provisions regarding open government data are voluntary, not mandatory.
Safeguards:
Source code can be requested for government procurement. It can also be requested for case-related investigations.
There is no automatic Most Favoured Nation (MFN) clause for data transfer.
Way Forward: Strengthen domestic laws (e.g., Digital Personal Data Protection Act, 2023), consult with the public before agreements, and review digital agreements every three years due to rapid technological changes.
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