India has a strong opportunity to position itself as a global leader in digital infrastructure innovation by adopting emerging models such as data embassies and data cities, according to a report by PwC. The report highlighted that India can attract foreign governments and international organisations by offering "data embassy" arrangements. Such a model would require the creation of tax-neutral zones, sovereign immunity frameworks, and robust cybersecurity guarantees. By doing so, India could position itself as a trusted host for the critical digital assets of other nations. It stated "India can attract foreign governments and international organisations by looking at opportunities such as offering 'data embassy' arrangements, sovereign data hosting under diplomatic protections".

Source: Economic Times December 24, 2025 11:13 UTC