India Proposes Free Trade Deal with UK, Offers Digital Governance Models
India's Commerce Minister, Piyush Goyal, has proposed a comprehensive plan for an India-UK Free Trade Agreement. The blueprint focuses on India's skilled talent, cost-effective solutions, and growing capabilities in AI and emerging technologies. Notably, Goyal suggested exporting India's digital governance models as part of this partnership.
India's digital infrastructure is already making waves globally. Elements of India Stack, such as Aadhaar-based systems, UPI-style payments, and CoWIN-style certification, are being adopted in countries like Sri Lanka, the Philippines, and Ethiopia. The Modular Open Source Identity Platform (MOSIP) is in use in over twenty countries.
Key organizations driving this international expansion include Indian public agencies, the National Payments Corporation of India (NPCI) and its international arm NPCI International Payments Limited (NIPL), local regulators in partner countries, and Indian government bodies providing development finance and bilateral grants. Private firms, startups, and civil society groups also play a significant role in digital literacy and capacity building, enabling adaptation to local needs. The adoption of systems like UPI and MOSIP-backed digital identity platforms influences local democracy practices by enhancing financial inclusion, transparency, and empowerment.
While India's digital transformation has been celebrated for its benefits, exporting these models comes with potential challenges. It may bring assumptions about state functioning that don't align with local democratic practices or social needs, potentially embedding new hierarchies. Moreover, India's digital diplomacy conceals infrastructural dependencies on foreign-owned cloud infrastructure, advanced chipsets, and proprietary models, despite claims to digital sovereignty.
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