“Decisions about vendors, standards and data governance have long-term implications for national and regional resilience.” An ASPI research report issued today frames South Asia’s digital choices as strategic — not merely technical — and urges New Delhi to make the region’s digital transformation a central strand of its regional policy, working closely with Australia and like-minded partners.
Chinese firms' footprint across South Asia's digital ecosystem
Over the past decade, Chinese companies have established a significant presence across South Asia’s digital ecosystem, the report says. They are suppliers of mobile phones and telecommunications equipment, fibre‑optic networks and submarine cables, data centres, cloud services, surveillance technologies, digital payments and e‑commerce. Competitive pricing, state‑backed financing and strong project delivery have made them an attractive option for governments facing resource constraints.
That reach is not limited to hardware. Technical standards and governance practices are being promoted through bundling with large infrastructure projects, professional training and diplomatic engagement. The report highlights risks that can follow: technological lock‑in in standards and repairs, unsustainable financing, lack of transparency, weak cybersecurity, and inadequate data privacy laws — all of which can constrain future diversification and threaten digital sovereignty.
India's comparative advantages: Aadhaar, UPI and digital public infrastructure
India cannot replicate a vertically integrated digital ecosystem spanning hardware, cloud services, platforms, financing and implementation at the same scale, the report argues. Still, it possesses notable strengths. Its experience deploying digital public infrastructure at scale — specifically the Aadhaar digital identity system and the UPI instant‑payments network — demonstrates how secure, affordable and interoperable systems can boost financial inclusion, service delivery and administrative efficiency.
At the same time, the report cautions that past regional connectivity efforts encountered political and delivery challenges: smaller states have expressed concern about India’s dominant position, and projects have suffered from lack of timely delivery. The recommended path is to leverage Indian strengths selectively while avoiding attempts to replicate China’s vertically integrated model.
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See what we buildHow Australia complements India: finance, e‑governance and capacity building
Australia, the report observes, is well placed to complement India. It brings expertise in e‑governance, cybersecurity, infrastructure financing, institutional capacity building and regulatory cooperation. The authors propose integrating digital infrastructure into Australia’s South Asia Regional Infrastructure Connectivity initiative — currently focused on transport and energy — to support international financing of terrestrial fibre networks and resilient e‑governance platforms.
Australia’s experience in facilitating finance and project preparation, combined with India’s track record in cost‑effective digital solutions and regional development projects, could create viable alternatives that expand choice for South Asian governments.
Partnership mechanisms: the Partnership on Cyber, Critical Technologies and Supply Chains and a dedicated dialogue
The Partnership on Cyber, Critical Technologies and Supply Chains is identified as an institutional basis for expanded cooperation between India and Australia. The report recommends establishing a dedicated India–Australia digital dialogue that brings together political leadership, government officials, experts and observants from partner countries in South Asia. Such a forum would encourage knowledge sharing and deepen mutual understanding.
Priority cooperation areas listed include digital public infrastructure, cybersecurity exercises, governance best practices, human capital development and private sector investment — all aimed at strengthening institutional resilience across the region.
What this means for South Asian governments, Indian and Australian policymakers, and technologists
- South Asian governments: the report urges expanding choices so governments can pursue digital transformation on terms that reflect their own development priorities, while watching for vendor lock‑in, unsustainable financing and governance gaps.
- Indian policymakers: play to strengths in digital public infrastructure, cooperate with like‑minded partners to overcome resource constraints, and work to build trust and political support in smaller states wary of dominance and delayed delivery.
- Australian policymakers and implementers: incorporate digital infrastructure into regional connectivity initiatives, use experience in project preparation and financing, and support institutional capacity building and regulatory cooperation.
- Technologists and security teams: prioritise interoperability, resilient e‑governance design and stronger cybersecurity and data‑privacy practices to reduce the risks associated with concentrated supplier dependencies.
The report counsels against an unrealistic effort to detach the region from Chinese technology. Instead, its central prescription is practical and incremental: expand the range of credible alternatives, strengthen regional capacity, and promote secure, trusted and interoperable digital ecosystems. Achieving that will require political will and long‑term funding — and a readiness by India and Australia to marry India’s implementation experience with Australia’s financing and governance expertise.
