I think we must all agree that national governments have a duty of care towards their citizens.

From the Indian govt perspective, the dominance of the Internet by foreign owned businesses means that the country is vulnerable to malfeasance should those foreign governments mean India harm or come to decide - over the head of the government - what the Indian people want or need.

This is about national sovereignty and national security. We have seen how those values trump privacy concerns for individuals in any country, including the US, so must accord the same understanding for other nations also.