India Doubles Cybersecurity Budget Amid Escalating Threats
In a crucial move to bolster national security, the Indian government has announced a dramatic increase in its cybersecurity budget for the financial year 2024-25. Funding for the Indian Computer Emergency Response Team (CERT-In) and other cybersecurity initiatives has soared to approximately Rs 1,000 crore, a significant leap from Rs 500 crore just two years ago and below Rs 100 crore prior to 2018-19. This funding now constitutes 4.5% of the Ministry of Electronics and Information Technology’s total budget, highlighting an escalating commitment to combatting cyber threats. However, with cybercrime continuing to evolve, the urgency remains: Is this investment enough?
As India’s digital landscape expands, so do the risks associated with it. Bank fraud, hacking, and UPI phishing incidents have surged, causing losses of Rs 177 crore from financial frauds involving sums over Rs 1 lakh in 2023-24, compared to Rs 50 crore in 2020-21. These figures exclude numerous smaller fraud cases, reflecting a broadening crisis.
Moreover, the IBM Cost of a Data Breach Report revealed that India experienced its highest-ever average data breach cost of Rs 19.5 crore in 2024, driven largely by phishing attacks and compromised credentials. This increase in financial impacts poses a significant challenge for businesses and individuals alike.
CERT-In’s role in fortifying India’s cybersecurity framework is vital, as it monitors incidents and provides critical advisories. However, business leaders are also increasingly aware of the urgent need for heightened vigilance. A recent PwC report showcased cybersecurity as a paramount concern for C-suite executives, surpassing even inflation risks.
As technology advances, the landscape of cyber threats is evolving, putting national security at risk. The integration of generative AI and reliance on cloud storage promise to complicate defenses further. India’s investment in cybersecurity is a positive commitment, but as cybercriminals grow more sophisticated, an ongoing arms race is expected in the digital battlefield.