In her budget speech, Finance Minister Nirmala Sitharaman announced that the government will establish Data Embassies in the country to facilitate seamless digital transfers and continuity for other countries.

Data embassies pioneer a new approach to data security by leveraging diplomatic agreements and cloud technology solutions.

A data embassy is a solution that nation-states use to ensure a country's digital continuity, particularly with regard to critical databases.

"We will facilitate the setting up of Data Embassies for countries looking for digital continuity solutions," Sitharaman said during her Union Budget speech in Parliament.

Small countries all over the world are turning to the concept of "data embassies" in order to provide sovereign and resilient infrastructure.

In 2015, Estonia, one of the world's most advanced digital administration countries, authorised the establishment of a data embassy. The Data Embassy model has been adopted by Luxembourg, Monaco, and a few other countries.

"A data embassy must have a secure, resilient data infrastructure that can protect a nation's data from cyber and physical threats. They should have a robust mechanism to ensure efficient data back-up and fail-over, as well," it said.