India–U.K. CETA: Digital Trade Chapter

1. Source Code Protection

• Both countries agree not to mandate the transfer or access to source code of software owned by a person of the other party.

• Significance:

  • Relieves foreign tech firms concerned about IP theft or security breaches.

  • Protects proprietary technologies from reverse engineering and cyber exploits.

2. Open Government Data Access

• Provision to permit mutual access to each other’s open government data.

• Importance:

  • Facilitates research, innovation, AI model training, and policy development.

  • Taps into large datasets held by governments.

3. Electronic Governance & Trade Provisions

• The agreement ensures:

  • Validity and enforceability of electronic contracts.

  • Promotion of electronic authentication services.

  • Consumer protection in online transactions.

  • Curbing of unsolicited commercial messages (spam).

  • Commitment to open internet access and net neutrality.

4. Data Localisation and Transfers

• No binding commitment by India on free flow of cross-border data.

• India retains regulatory flexibility, particularly in:

  • Financial and banking sectors (e.g., RBI data localisation norms).

• Implication: Enables India to reconcile trade agreements with its own Digital Personal Data Protection Act, 2023.

5. Policy Continuity and Industry Reaction

• Reflects India’s ongoing policy shift:

  • E.g., Department of Telecommunications considering dropping source code requirements in public procurement.

• Software Freedom Law Centre (SFLC):

  • Calls the chapter a pro-innovation stance.

  • Warns about the need to reconcile with domestic data protection laws.

• Industry Perspective:

  • Appreciates clarity on electronic commerce norms and IP protection.

Relevance

• Strategic Bilateralism: Strengthens digital trade architecture amid growing services economy.

• Digital Sovereignty vs. Openness: Balances innovation and national security/data governance concerns.

• Global Trend Alignment: Follows global trend of avoiding rigid source code disclosure mandates, aiding India's positioning in digital diplomacy.