In the digital age, data has emerged as one of the most valuable strategic assets, influencing governance, economic development, technological innovation, and national security. This chapter explores the concepts of Data Protection and Data Sovereignty, examines how data can be weaponised through cyber espionage, disinformation, and cyberattacks, and analyses India's legal, institutional, and policy framework for securing digital information. It also discusses key challenges, government initiatives, real-world case studies, and the way forward for building a secure, trusted, and sovereign digital ecosystem. Designed for UPSC, JKPSC, JKAS, and other competitive examinations, the chapter provides a comprehensive understanding of one of the most critical dimensions of contemporary internal security.