Keralam Model Mirage
Chapter Excerpt
Every Google search made by an Indian citizen, every AWS-hosted startup, every Microsoft Teams call in a government ministry, they all flows through infrastructure owned, operated, and legally governed by American corporations.
While visiting Varanasi recently, I stopped at a small tea stall near Vishwanath Gali and struck up a conversation with its owner, Suresh Kumar. He told me that the previous Sunday had brought exceptional business because of a major temple event, but when I asked what was the earnings growth, he admitted he had no idea. Although customers had paid through UPI, the analytics portal of his local cooperative bank had been unavailable due to issues involving its AWS-hosted services. Suresh couldn't see his own transaction data, and he was unaware that access to information about his livelihood depended on the availability of infrastructure controlled by a foreign technology company thousands of miles away. That conversation underscored for me how digital dependence can quietly affect even the smallest businesses in remote towns and villages across India.
My schoolmate from Thrissur, now a senior doctor at a major eye hospital in Kochi, described an IT situation there that he couldn’t fully explain. Connecting the dots, I inferred this much. They had a large volume of digitized patient records collected using software from a small healthcare startup whose platform was hosted on infrastructure in Copenhagen. When the startup was acquired in 2023, customers were given just thirty days to either migrate to a new Microsoft Azure–based platform at nearly three times the monthly cost or move their data elsewhere. With limited budgets, the hospital's small IT team scrambled to extract more than a decade of patient records through a cumbersome export process, completing the migration only days before the deadline with some data loss and formatting issues. It was not a cyberattack or a technical failure, just a reminder that when critical digital infrastructure is controlled by others, their business decisions can quickly become your operational crisis.
Anjali built her senior citizen services company from a single room in Chennai, relying on Google Workspace for email, spreadsheets, and scheduling. Like many small business owners, she never considered the risk of paying for essential digital services in U.S. dollars. In 2025, as the rupee weakened from around ₹76 to over ₹90 against the dollar, her software costs rose by nearly 20% without adding a single user or using any new features. A currency decision made thousands of miles away, influenced by the U.S. Federal Reserve, quietly reduced the margins of a small Indian business with no control over the outcome.
Renjith Pawar had spotted an issue with the agreement that had to be signed by the state of Bihar with Oracle to use their Oracle Intelligent Data Archival solution to store the personal and financial data of millions of vulnerable citizens. Buried in the contract was a clause requiring any legal dispute to be resolved through arbitration in the State of Minnesota. Oracle said that it was non-negotiable at the scale and volume that was being discussed. With the project deadline approaching and no practical alternative, the agreement was signed, illustrating how even sovereign governments often have little leverage over the legal terms governing their critical digital infrastructure.
For any individual organization or company, these challenges are not necessarily specific to relying on foreign cloud providers. However, at a macro level, when an entire country becomes dependent on a small number of foreign entities concentrated in one single country, it begins to represent a broader geopolitical risk.