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Govt wants critical sector firms to use India-made cloud systems

Financial Express Hyderabad

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April 28, 2026

CUTTING DEPENDENCE

- SOUMYARENDRA BARIK

AMID RISING GEOPOLITICAL and cybersecurity concerns, the government may require companies in critical sectors such as energy, telecom, and banking, to use made-in-India sovereign cloud systems, it has been learnt.

According to government officials, the move under discussion is aimed at reducing dependence on foreign cloud providers and strengthening data security. The government maybe comfortable with tighter control over sensitive data and digital infrastructure, they said.

The consideration was prompted last year, when Microsoft suddenly blocked oil refiner Nayara Energy from its IT services. This prompted questions in New Delhi’s policy circles around the dependence Indian companies have on crucial digital infrastructure services offered by foreign companies, and the need for them to build resilience against potential disruptions in the future.

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