Sailing India into the world’s digital tides

In today’s era of intense globalisation across markets and other key sectors, no country can afford to remain isolated. In this primarily digital era, every nation requires robust international data connectivity to achieve substantial socioeconomic progress within the unified global landscape. This is especially true for India, with its ambitious digital goals and increasingly prominent global role. Its per capita data consumption is already among the world’s highest (one operator recently reported 31GB per subscriber per month) and continues to rise steadily.

ECONOMIC GROWTH AND COMPETITIVENESS

It is not widely known that subsea cables carry around 99% of global data traffic, making them essential for international trade and economic connectivity. Over USD 10 trillion in financial transactions are processed daily through these cables. This connectivity bolsters India’s competitive edge in key sectors like IT, fintech, and digital media, reinforcing its reputation as a global digital leader. Reliable subsea connectivity also attracts foreign investment, which in turn fosters economic growth and creates jobs.

Globally, 532 subsea cable systems are in operation, with 77 more planned. However, only 17 cables currently connect India, with an additional 8–10 in development—comprising just 4–5% of the global total. Additionally, India has only 14 landing stations, representing approximately 1% of global connectivity points, highlighting a gap in international connectivity relative to India’s digital stature and global role. Furthermore, much of India’s connectivity routes pass through geopolitically sensitive regions such as the Red Sea and South China Sea.

"India faces significant connectivity risk as much of its routes pass through geopolitically sensitive regions like the Red Sea and South China Sea."

As a result, India’s connectivity is at significant risk due to both limited subsea cable capacity and reliance on high-risk routes. Expanding and diversifying these routes is essential to ensure secure and robust international connectivity.

THE COST OF CABLE CONNECTIVITY

Due to suboptimal connectivity, India appears to be misaligned with international price standards, as indicated by the most recent publicly available data. Overall, the monthly lease for a 100 Gbps connection from Marseille to Mumbai is priced at USD 80,390, while the same lease from Marseille to Singapore is USD 26,538. Similarly, a 100 Gbps connection from Chennai to Singapore costs USD 91,821 per month, compared to the significantly lower USD 8,393 per month for a similar lease between London and New York.

This stark difference highlights a substantial cost impact for India, where price sensitivity in the market is among the highest globally. The implications of such high connectivity costs underscore the need for more competitive pricing and enhanced connectivity infrastructure to align more closely with global standards.

DATA-INTENSIVE APPLICATIONS AND SERVICES

As India’s digital economy expands, subsea cables provide essential bandwidth for data-intensive applications such as Artificial Intelligence (AI), the Internet of Things (IoT), video streaming, and cloud computing.

India has only 14 landing stations, representing approximately 1% of global connectivity points, highlighting a gap in international connectivity.

In an increasingly interconnected world, real-time access to global data centres and seamless data transfer are crucial. Subsea cables offer the low-latency, high-speed connectivity needed to support these applications, empowering Indian businesses and startups to innovate and expand into global markets.

BRIDGING DIGITAL DIVIDE AND

ENHANCING INCLUSIVITY

Expanding Internet access and digital services to remote and rural regions is a top priority for the Government of India. The motto ‘Sabka Sath, Sabka Vikas’ (Development of all by taking all along) underscores this commitment. With 99% of data transmitted through subsea cables, the role of this connectivity in fostering inclusivity and narrowing the digital divide is paramount.

Digital inclusion is especially important, as it enables remote communities to access online education, healthcare, and government services, empowering them to participate actively in the digital economy.

Geographically, India is strategically positioned along major international subsea cable routes, providing a unique advantage. By enhancing domestic subsea cable infrastructure, India can further reduce latency in data transfer between domestic users and international content providers, creating a smoother, faster user experience for activities such as online gaming, video conferencing, and cloud applications.

This improvement directly enhances user satisfaction and productivity, particularly in metropolitan hubs where data consumption is at its peak.

SAFEGUARDING AGAINST DATA

TRAFFIC BOTTLENECKS

With global data volumes expected to rise sharply, relying solely on terrestrial links is increasingly unsustainable. Subsea cables provide the essential capacity and reliability needed to prevent data traffic bottlenecks, particularly during peak demand. This infrastructure is crucial for the stability and resilience of India’s Internet backbone, allowing telecom operators and Internet service providers to meet the rising demands of both consumers and businesses without interruptions.

Each year, numerous disruptions occur due to cable cuts, many resulting inadvertently from fishing equipment and anchors (around 100-150 cuts annually). However, there are also instances of sabotage, as cables, often owned by consortia of Internet and telecom companies, are located in publicly known areas, making them vulnerable targets for hostile actions.

India’s subsea cable investments will bolster regional connectivity, positioning the country as a data bridge between Asia, Europe, and the Americas.

This risk was underscored by unexplained cable failures off the coast of West Africa on 14 March 2024, which caused widespread Internet outages across at least 10 countries. Similar incidents in the Baltic Sea in 2023 also raised suspicions of sabotage.

To mitigate these risks, several protective measures are in place, including strategic route planning to avoid known hazards and politically sensitive areas, as well as the use of durable materials like steel armour to withstand harsh ocean conditions and accidental impacts. Experts have proposed creating ‘Cable Protection Zones’ to restrict high-risk activities near cables, and some advocate for amendments to international laws to deter foreign interference, with the development of treaties that would criminalise such acts.

Increasing subsea cable investments within India can enhance digital strength by giving the country greater control over its data traffic flows. Hosting key cable landing stations domestically reduces reliance on foreign landing stations, thereby mitigating potential points of failure or risks of external control. Enhanced control also facilitates better cybersecurity measures to protect India’s data infrastructure from cyber threats, data breaches, and geopolitical risks.

MAKING INDIA A GLOBAL SUBSEA DATA HUB

India has long aspired to establish itself as a global data hub, particularly as regional data residency laws and cross-border data flow policies shape the digital landscape. By enhancing subsea cable connectivity and leveraging its strategic geographical location, India can develop the infrastructure needed to serve as a global subsea data hub, facilitating cable landings if appropriate regulatory support is provided to attract consortiums.

Regulatory measures could also incentivise domestic data storage and processing, making India an attractive location for international data centres. This vision is especially significant amid today’s geopolitical tensions, promising economic growth, drawing global tech giants, and positioning India as a critical link in the global data ecosystem.

India’s subsea cable investments also bolster regional connectivity, positioning the country as a data bridge between Asia, Europe, and the Americas. By connecting more directly with other Asian countries, India can facilitate greater digital collaboration and trade within the region. This connectivity can also open new avenues for regional partnerships in cybersecurity, telecommunications, and digital innovation, which can be mutually beneficial for the entire region.

POLICY AND REGULATORY MEASURES

India can strengthen its digital foundation by prioritising related policies and strategic actions aimed at propelling economic growth, fostering inclusivity, driving innovation, and ensuring that all citizens benefit from the digital age. Key policy and regulatory measures include diversifying cable routes through Africa and other geopolitically stable regions to reduce vulnerability, while encouraging foreign investments in subsea cables may require a review of licensing and regulatory frameworks to streamline processes. Additionally, separating infrastructure ownership from service provisioning can stimulate competition and enhance service quality.

The country also needs to expand the number of cable landing stations (CLS) to reduce congestion, with CLS points of presence (PoPs) ideally extended to all state capitals. Allowing domestic traffic on subsea cable systems will further improve connectivity. A single-window clearance process with time-bound approvals for new subsea cables and CLS facilities would facilitate faster infrastructure development.

The importance of subsea cable connectivity for India’s digital future cannot be overstated. As data volumes surge, investment in high-capacity subsea infrastructure will be essential to ensure digital resilience, boost economic competitiveness, and secure India’s position in the global digital economy. Developing a robust subsea cable network aligned with the goals of Digital India will help bridge digital divides, stimulate economic growth, and establish India as a vital link in the global data ecosystem.

TV Ramachandran

The author is President, Broadband India Forum.

Views are personal.

(Research inputs by Debashish Bhattacharya)

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