Microsoft’s decision to suspend software services to Nayara Energy brought to light a serious weakness in India’s digital systems. Most of India’s digital infrastructure relied on software platforms owned and controlled by foreign companies, especially American tech firms. This incident served as a warning about the risks tied to such dependence, especially for critical sectors such as energy, defence and communications.

“This is a massive strategic deficiency,” said Col Hunny Bakshi, highlighting the larger risks behind the disruption. “Microsoft blocks access!! Now, just think, it’s a hot war situation. Our total reliability on the foreign Operating system. Grand Daddy decides to place sanctions on us as we are fighting his love child. Your entire ICT goes phuttt. To lead, u need ur own secure ICT.”

Microsoft restored access to Nayara Energy’s data and services on Wednesday, two days after the company reported a sudden cut-off. The action appeared to be linked to the European Union’s recent sanctions on Nayara’s Gujarat refinery, as part of the EU’s broader strategy to limit Russian oil exports.

Nayara stated that Microsoft’s suspension happened without any legal requirement under Indian or American law and without prior notice. The company warned that such actions by global corporations showed a growing trend of applying foreign laws in countries where they have no legal standing. Nayara explained that the suspension affected access to licensed products and internal tools that were essential for daily operations and fulfilling service responsibilities.

Nayara runs one of the biggest refineries in the country, with an annual capacity of 20 million tonnes. It contributed to 8 per cent of India’s refining ability and 7 per cent of the fuel retail market, while also working to expand in the polypropylene sector.

The Government of India responded strongly to the EU’s sanctions issued on July 19. External Affairs Ministry spokesperson Randhir Jaiswal stated that India did not accept unilateral sanctions and that the country prioritised energy security to meet the basic needs of its people.

As part of its new sanctions package, the EU lowered the price cap on Russian oil exports from 60 dollars to 46.7 dollars per barrel. This measure directly affected Nayara, a major buyer of Russian crude. The episode added urgency to India’s need to reduce its reliance on foreign-owned digital systems, especially in areas critical to national interest.