"India is dealing with a major external shock -- the United States has imposed 50 per cent tariffs on most Indian goods -- but a far deeper strategic risk lies in its digital dependence on US technology firms," the India-based Global Trade Research Initiative (GTRI) said in a report.
"A US-ordered cutoff could instantly paralyse digital payments, tax filings, and government services nationwide," it noted.
GTRI underscored that government and defence applications in India are powered by US systems in addition to mobile phones, computers, and laptops.
Besides, India's banking sector, both private and public, deploys American software and cloud technology, making it vulnerable in crisis scenarios, as disrupting banking could wreak havoc on the Indian economy.
The think tank asserted that, given the geopolitical tensions between New Delhi and Washington, India must focus on reducing its reliance on US technology behemoths and instead develop indigenous solutions, i.e., sovereign cloud technology, indigenous data-driven AI leadership, homegrown operating systems and in-house cybersecurity network.
"India has the talent and the market to build sovereign capability. Just as UPI and ONDC (Open Network for Digital Commerce) changed the world of payments and commerce, we can do the same for core digital infrastructure," GTRI underlined.
"In an era of tariffs, sanctions, and technology wars, sovereignty will be measured not just by territory or GDP but by 'who controls the code.' The message is clear: India must build a secure digital backbone now -- or risk being digitally switched off in the future," it concluded.