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For a country like India, with its vast and sensitive infrastructure across governance, defence, and financial sectors, the development of a quantum communication backbone is not just an aspirational goal but a national imperative. Drawing lessons from recent Operation Sindoor and multiple security incidents, including the GPS Spoofing at the Delhi Airport, quantum key distribution (QKD) has emerged as a critical frontier for securing communications.
Quantum technology provides a secure communication solution that is resistant to attacks, including those from future quantum computers. India’s early steps in this direction, through institutional engagement and pilot initiatives, reflect both the strategic significance and the complex regulatory ecosystem within which such technologies must operate.
The value of quantum-secured communication lies in its ability to redefine data protection and national security frameworks. For India, it represents a formidable enhancement of confidentiality and integrity across its information ecosystem. The potential for adversarial states or actors to compromise existing encryption protocols poses an imminent risk to the nation’s digital sovereignty. QKD directly mitigates this risk by raising the security threshold to a level that cannot be breached without detection.
Policy Frameworks for a Quantum Shift
Integrating QKD into India’s critical infrastructure would significantly reduce reliance on legacy encryption protocols that are vulnerable to foreseeable advances in computing. This technological shift aligns with national cyber and data protection policies and the objectives of the Defence Cyber Agency and other security stakeholders.
From a regulatory perspective, QKD deployment may require new legislative provisions or amendments to existing laws. These would need to address quantum-safe protocols, lawful interception thresholds, and standards for validation, certification, and liability. Its integration into defence, space, and public service systems thus goes beyond technological progress—it is a sovereign imperative to secure India’s communication architecture against escalating geopolitical, technological, and cyber threats.
India has already recognised this potential, with multiple pilot projects demonstrating the viability of QKD networks. Agencies such as C-DOT, DRDO, and ISRO are spearheading these efforts. However, full-scale commercialisation remains a multifaceted challenge that requires harmonisation of technology readiness, legal frameworks, and market incentives.
Currently, India’s legal and policy structures are not adequately tailored to regulate or facilitate quantum communication. Critical questions remain around data sovereignty, export control of quantum equipment, certification protocols, and lawful interception in quantum networks. While the Digital Personal Data Protection Act, 2023, covers general data protection principles, it does not yet address the specificities of quantum-safe systems.
Moreover, the deployment of QKD networks in government and defence contexts will require distinct legal treatment compared with commercial applications. Protocols must be developed for standardisation, interoperability, and liability in cases of breach or malfunction. This could involve amendments to existing laws or the establishment of a dedicated legal framework for quantum technologies. International cooperation, especially in harmonising standards and export controls through multilateral forums such as the Wassenaar Arrangement, will also influence India’s policy approach.
Financial Sector as the First Mover
The financial sector presents a compelling case for early adoption of QKD. Banks, stock exchanges, and payment gateways manage vast volumes of confidential and time-sensitive data. With the advent of quantum computing, the threat to public-key cryptography—on which current financial infrastructure depends—is no longer hypothetical. Institutions such as the Reserve Bank of India and the Securities and Exchange Board of India must proactively assess quantum risk and incorporate QKD-based solutions into their cybersecurity frameworks. This will necessitate sector-specific plans, compliance mechanisms, and legislative amendments.
The commercialisation of QKD in India will depend on multiple factors. A clear national roadmap, as outlined in the National Mission on Quantum Technologies and Applications (NM-QTA), must be accelerated with strong public–private partnerships. Policy must establish time-bound goals for trials, ecosystem development, indigenous hardware development, and talent creation. Regulations must be forward-looking to avoid retrospective compliance challenges. Investments from startups and academia should be supported with tax incentives, procurement mandates, and balanced intellectual property reforms.
Integration of QKD into existing telecommunication infrastructure, particularly BharatNet and the 5G backbone, could catalyse deployment at scale. This would not only secure India’s digital infrastructure but also generate opportunities for export-led innovation. However, issues such as cross-border data flows, cybersecurity audits, and third-party vendor obligations will need to be reassessed in light of quantum-enabled systems.
India’s journey towards building a QKD-powered backbone is now at a decisive juncture. While pilot projects are promising, the commercial and strategic value of QKD can only be realised through a legally robust and forward-looking policy framework. This will require coordination among science, industry, law, and security agencies. By embracing anticipatory governance, accountability, and international alignment, India can secure its digital sovereignty and establish itself as a global leader in the quantum revolution.
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The author is the Founding Partner of Arthashastra Legal.
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