Tech diplomacy is most important in geopolitical landscape

Tech diplomacy – The global environment is more unstable than ever as a result of the COVID pandemic, coping with the effects of climate change, Russia’s war in Ukraine, the US-China dynamic, and other factors.

To foster confidence in the exchange of information across sectors and countries, the technology sector and technology itself have a critical role to play in the current environment. Cross-border data flows are more important than ever for sustaining our economic expansion.

Shinzo Abe, the late former prime minister of Japan, proposed for the development of the Data Free Flow with Trust (DFFT) mechanism for cross-border data sharing during Japan’s G20 Presidency just a few years ago. In a G20 communique that was signed by the majority of the member states, Abe’s goal for promoting cross-border data flow with improved cybersecurity, privacy, and intellectual property safeguards was expressed.

The global digital economy is reliant on open cross-border data movement. This is supported by empirical data. According to a McKinsey estimate, cross-border data flows provide three percent of the world’s GDP, or USD 2.3 trillion. It is encouraging to see that a data transfer clause is included in the recently published Draft Digital Personal Data Protection Bill.

India is poised to solidify its status as a digital superpower as it assumes the G20 Presidency. With the information technology sector in India attracting the most foreign direct investment over the previous two decades and serving as one of the major employers in the nation, there are already many multinational IT companies operating there. By establishing a cross-border data sharing policy that is in line with the regulatory frameworks of its main digital trade partners, India can still further expand and develop this sector into a big global economic engine.

As the G20’s host nation, India has a special chance to take the lead, demonstrate its expertise in the digital space, and guide a world economy that can make the most of technology. Now is the time to fully utilise technology in these uncertain times, whether it be India’s Unified Payments Interface (UPI), which has enabled financial inclusion for millions of people outside of the formal banking system, or the multilayered digital identity, payment, and data management system through Aadhaar.

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