Governments worldwide are increasingly adopting foreign-built artificial intelligence (AI) systems to enhance governance, policing, and public services. However, this raises significant concerns regarding data ownership and privacy. In India, the Digital Personal Data Protection Act, 2023 seeks to regulate how personal data is collected, processed, and stored, granting citizens greater control over their information. Despite these regulations, the law allows exemptions for government agencies in the interest of national security, leading to potential large-scale data processing with limited transparency. Moreover, the reliance on foreign technology, particularly from companies like Palantir Technologies, creates a paradox of needing advanced tools while risking control over valuable data. As AI systems integrate multiple data streams, they enable extensive surveillance and profiling, which can categorize individuals without their knowledge. This raises questions about accountability and transparency in decision-making processes. With India producing a significant portion of the world's data, the decisions made today regarding data governance will shape the future relationship between the state and its citizens, emphasizing the importance of addressing data sovereignty and privacy concerns.