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Cybersecurity Preparedness in India’s Expanding Digital Economy

The digital economy in India has expanded significantly, driven by factors such as like the increased use of mobile phones, internet connectivity, digital payments, cloud computing, and digital infrastructure development. According to the US Department of Commerce, there were 650 million users of mobile phones and more than 950 million internet subscribers in India in April 2026. Furthermore, the digital economy in India is predicted to grow to Rs. 94.67 lakh crore (US$ 1 trillion) and constitute around 20% of India’s GDP by the year 2030.

However, such growth is accompanied by several risks, which are related to cybersecurity. The increase in cyber-attacks has not only affected companies, but the government and other organizations too. In December 2025, about 21 billion transactions worth more than Rs. 27 lakh crore (US$ 305 billion) took place using the Unified Payment Interface (UPI). The prominent utilization of digital payment systems reflects the high degree of dependence of the country’s economy on digital infrastructure. In 2025 alone, the Indian Computer Emergency Response Team (CERT-In) faced about 29.44 lakh cyberattacks. Furthermore, CERT-In issued more than 1,530 cybersecurity alerts, 390 vulnerability notes, and 65 advisories to its stakeholders. The Indian Government is working towards improving the country’s cyber resilience by carrying out activities relating to threat detection, incident management, cybersecurity audit and digital infrastructure security.

Rising Cyber Risks in India’s Expanding Digital Economy

It is essential for any firm or organization to be ready for any eventuality related to cybersecurity, especially regarding the growing reliance of different sectors like finance, healthcare, telecommunications, e-commerce, and government agencies on network connectivity. This stems from of the heavy reliance on digital transactions, cloud computing technologies, artificial intelligence, and intelligent devices.

The Indian Government has been gradually establishing a cybersecurity framework through programs such as CERT-In, National Critical Information Infrastructure Protection Centre (NCIIPC), Cyber Surakshit Bharat campaign and Digital Personal Data Protection Framework. These programs are aimed at enhancing cyber resiliency, safeguarding critical digital infrastructure, creating cyber awareness, and strengthening the response mechanism to any type of cyber-attack. Increasing financial investments in cybersecurity evaluations, artificial intelligence-powered detection mechanisms, and digital risk management tools have further aided the country’s effort towards developing a cybersecurity-ready digital economy.

Strengthening India’s Cybersecurity and Digital Resilience Framework

The growth of India’s cybersecurity and digital resilience framework is continuous as the cyber risks have also increased along with the increasing rate of digitalization.

The trend of proactive management of cybersecurity and readiness of the ecosystem is also evident. In the year 2025, for instance, CERT-In collaborated with 231 cybersecurity audit companies and conducted 122 cybersecurity simulations concerning about 1,570 organizations. Moreover, 20,799 cybersecurity experts were trained in cybersecurity via various training programs.

However, another notable trend is the adoption of cybersecurity and data governance compliance measures. The trend is marked by the introduction of the Digital Personal Data Protection (DPDP) act and its respective framework in August 2023 and November 2025, respectively. Such legislative measures can lead to more accountability from companies regarding data privacy and consent management while strengthening cybersecurity compliance when it comes to the handling of digital personal data. The rising trend of digital transactions, cloud computing, and artificial intelligence will require more digital infrastructure, encryption technology, and threat detection software along with cybersecurity as a service. Cybersecurity readiness is essential for MSMEs and digital enterprises because most of these companies depend on external cybersecurity solutions and technologies.

Government Initiatives Supporting Cybersecurity

The growing importance of digital platforms in payment systems, governance, online commerce, healthcare services, cloud computing and financial services has made cybersecurity a significant national priority. The Indian government has taken some initiatives towards enhancing cybersecurity preparedness in several ways, namely, the Digital India program, Cyber Surakshit Bharat program, NCIIPC, Cyber Swachhta Kendra, and Digital Personal Data Protection (DPDP).

Growth Drivers and Key Trends

The following factors are driving the growth of India’s cybersecurity ecosystem:

Outlook and Road Ahead

The next phase of India’s digital growth will depend not just on expanding access, but on ensuring trust, resilience and continuity. Since the technologies of UPI, Aadhaar, and DPI have become an indispensable part of people’s lives, cyber readiness will be crucial to ensure consumer trust, competitiveness, and efficient delivery of services. Some of the latest numbers and policies coming out of the government clearly point to the country’s efforts at strengthening its cybersecurity structure, but more needs to be done until 2026 and further.

FAQs

Why is cybersecurity becoming progressively important in India?

Cybersecurity becomes gradually crucial due to increased digitalization, the growth of digital transactions, implementation of cloud computing, and development of digital public infrastructure in India.

What are the major cyber threats faced by India?

Ransomware attack, phishing, cyberfraud, data breaches, and AI-based cyberattacks are some of the cybersecurity threats being witnessed in India.

What role does CERT-In play in India’s cybersecurity ecosystem?

Indian Computer Emergency Response Team (CERT-In) acts as the national focal point for cybersecurity, cyber threats, cyber incidents, and digital infrastructure protection.

How is the Government of India strengthening cybersecurity preparedness?

The Indian government is taking several steps to ensure cybersecurity for its citizens. It is working on programs like Digital India, Cyber Surakshit Bharat, Cyber Swachhta Kendra, NCIIPC, and Digital Personal Data Protection (DPDP).

What is the future growth potential of India’s cybersecurity sector?

India’s cybersecurity industry is set for strong growth in the coming years due to raising cyber threats and investments in cyber resilience and data protection solutions.