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Centre weighs sovereign cloud mandate that could force critical firms onto India owned infrastructure

Economy
Published on 28 April 2026
Centre weighs sovereign cloud mandate that could force critical firms onto India owned infrastructure

A sanctions glitch reportedly cut off core tools even

The Centre is considering a mandate requiring companies in energy, telecom and financial services to host their core digital infrastructure only on Made-in-India sovereign cloud systems. Officials cite rising geopolitical risks and cybersecurity concerns, heightened after Microsoft briefly blocked Nayara Energy services linked to EU sanctions. Microsoft says an automated system wrongly assumed EU jurisdiction, and the move also aims to reduce foreign dependency.

  • Critical sectors may be pushed to use only sovereign Made-in-India cloud
  • Proposal targets dependence on foreign cloud providers and sensitive data control
  • Nayara Energy outage showed sanctions can disrupt operations even without India action
  • China CCTV curbs via STQC certification complement the broader security push
Read the full story at Inc42

This summarization was done by Beige for a story published on Inc42Inc42

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