NEW DELHI — A policy paper released on 20 September 2026 calls for a coordinated ₹2.1 trillion (US$25 billion) investment in indigenous digital‑technology platforms, saying the move is essential to secure India’s data sovereignty and accelerate rural connectivity.
Report outlines roadmap for self‑reliant digital backbone
The document, titled “Strategic investments for indigenous technologies to build digital infrastructure in India,” was authored by a consortium of industry think‑tanks and academic institutes. It maps a three‑phase plan that would see domestic firms lead the rollout of 5G radio access networks, low‑earth‑orbit (LEO) satellite constellations, artificial‑intelligence (AI) data centres and unmanned‑air‑system (UAS) logistics hubs.
Phase 1, slated for 2026‑27, targets the replacement of imported 5G core equipment with solutions from Indian firms such as Bharti Telecom’s “Indi‑Core” platform and Tata Communications’ “Tata‑5G‑Edge.” The report estimates that domestic sourcing could cut capital‑expenditure by up to 30 % compared with current import‑heavy models.
Phase 2, covering 2027‑30, proposes the launch of a government‑backed LEO satellite network to provide broadband to the 600 million people still offline in remote villages. The paper cites the Ministry of Space’s 2025 announcement of a ₹500 billion budget for indigenous satellite development, and recommends a public‑private partnership model that would pool ₹200 billion from the National Digital Infrastructure Fund (NDIF).
Phase 3, extending to 2032, focuses on AI‑driven data‑centre clusters and drone‑based delivery corridors. The report points to a 2024 “Digital India AI Initiative” that earmarked ₹150 billion for AI research, and urges the creation of a “Drone Logistics Corridor” linking major metros to tier‑2 cities, leveraging domestic UAV manufacturers highlighted in a Groww analysis of best‑performing drone stocks.
Government response and industry reaction
In a statement released on 21 September, the Ministry of Electronics and Information Technology (MeitY) said the findings “align with the nation’s Make in India Digital agenda” and that “policy frameworks will be refined to accelerate indigenous procurement.” The ministry did not disclose any new budgetary allocation beyond the existing ₹1.2 trillion earmarked for 5G rollout in the 2026‑27 fiscal plan.
Industry bodies welcomed the report’s emphasis on self‑reliance but warned that “regulatory certainty and a clear timeline for spectrum allocation are critical to translating investment commitments into operational networks,” a senior executive of the Confederation of Indian Industry (CII) told reporters.
Foreign vendors, who currently supply 60 % of India’s telecom hardware, have lodged objections to the proposed procurement rules, arguing that they could breach World Trade Organization (WTO) commitments. The Ministry of Commerce, however, maintains that the policy “targets strategic security sectors and is fully compliant with WTO provisions on national security exceptions.”
Implications for the digital divide
Analysts say the report’s focus on LEO satellites could be a game‑changer for the country’s “last‑mile” connectivity challenge. A 2025 study by the Indian Space Research Organisation (ISRO) estimated that satellite broadband could reduce the cost of internet access in villages by 40 % compared with fiber‑to‑the‑home solutions.
Meanwhile, the push for domestic AI data centres is expected to create a new ecosystem of cloud service providers, potentially lowering the cost of AI compute for Indian startups. The report projects that a home‑grown AI cloud market could reach ₹300 billion by 2030, up from the current ₹45 billion.
Critics caution that the success of the plan hinges on skilled talent pipelines. The report recommends a “Digital Skills Initiative” that would train 5 million engineers and technicians over the next five years, funded jointly by the NDIF and the Ministry of Skill Development.
Next steps
MeitY has scheduled a multi‑ministerial review for early October, after which detailed procurement guidelines are expected to be published in the Gazette of India. The report urges the government to adopt a “fast‑track” approval process for indigenous projects, citing the need to meet the United Nations’ Sustainable Development Goal 9 target of universal broadband by 2030.
