India’s Digital Expansion and Cybersecurity Challenges

With the reported data breach from the Kudankulam nuclear plant in Tamil Nadu, India on 15 July, 2026, the issue of cybersecurity has assumed significance in India.  Please note that the Kudankulam nuclear plant is the largest nuclear plant of India , with capacity of 6000 MW (1000*6 units), being set up with the support of the Russia. So far, two units have been completed and remaining four units are under construction. According to News papers (The Hindu:17 July, 2026)some 14.3 GB of files have been breached, including the layouts of ventilation systems, floor plans of an alleged “control room”, supplier and vendor lists, and insurance paperwork. The Government came out with the clarification on 16 July, 2026 that no sensitive data related to nuclear safety and plant operation has been breached. The breached data relates to contractor, Reliance Infrastructure Ltd. However, this episode again raised the question of cybersecurity of India’s public infrastructure. This is in addition to the regularly reported cases of digital arrest, financial frauds and violation of privacy through digital manipulation.

In view of this event, let us see

What is the extent of India’s digital expansion?

What measures have been taken by India to ensure cybersecurity?

What are India’s cybersecurity challenges?

This article tries to answer these questions.

In 21st century, the digital technology is no more an option for the people and communities. It is now not merely a tool of socio-economic development and administrative improvement, but has become the part of human lives. The issue of cybersecurity is closely to the use and nature of digital technology. If other things remain equal, the extent of cybersecurity threats are directly proportionate to the use of digital technology. The use of  digital technology in India has enveloped  various individual and collective human activities like education, research, economy and finance, health, agriculture, delivery of services, governance, law and order and so on. Broadly, the digital technology is widely used in India in e-governance, financial transaction, industrial production and management, and social interactions. The tools of digital technology are computer, mobile, internet and digital platform which facilitate the use of digital technology in meaningful manner. The digital technology is always on move with continuous advancement. At present, some of the frontier areas of digital technology are: AI, Quantum technology, 6G, Blockchain technology, internet of things (IoT), robotics  and so on. As digital technology advance, it raises new concerns for cybersecurity.

Digital Technology Expansion in India

Though, digital visibility or popular adoption of digital technology is recent phenomena in India, digital age in India has long roots. India’s digital journey can be marks three distinct phases: Era of Digital Foundation (1955-1995), Era of Internet (1995-2015), and Era of Digital Revolution (2015 to present).

Era of Digital Foundation (1955-1995)- India’s digital age began long back in 1955 when  the first digital computer, the British-made HEC-2M, was installed at the Indian Statistical Institute (ISI) in Kolkata.  (The Hindu:2013). It was followed by the development of India’s first indigenous computer TIFRAC, by the Tata Institute of Fundamental Research (TIFR) in 1960. The Tata Consultancy Services (TCS) was formed in 1968, which played important role in the development of India’s IT industry. The establishment of the Department of Electronics (DoE) in 1970, on the recommendation of Bhabha Committee (1963) is another milestone in India’s digital journey. The National Informatics Centre (NIC)was founded in 1975,  which became a key player in India’s e-governance initiatives. India’s first New Computer Policy (NCP), was announced in November 1984, which sought to break the state-owned manufacturing monopoly, reduce import duties on computers, and kickstart private software development and hardware production in the country. The establishment of the Department of Telecommunications (DoT) on April 1, 1985, proved crucial in expanding and modernizing the country’s telecommunications ecosystem. Economic reforms of 1991 also gave a boost to IT industry in India. Thus, in the first phase, a robust foundation was laid out for the growth and adoption of digital technology.

Era of Internet (1995-2015)- The internet era began on 15 August, 1995 when the Videsh Sanchar Nigam Limited (VSNL) officially connected India to the Internet. The internet and expansion of mobile network later marked the start of a new digital era  in India. Other notable events of this era are: start of first internet banking in India by the ICICI bank in 1996; formation of National Task Force on IT and Software in 1998; Passing of Information Technology Act in 2000 to facilitate e-commerce and recognize electronic communication; establishment of CERT In in 2004 for addressing cyber threats; launch of Real time Gross Settlement System  (RTGS) for financial transfer in 2004; launch of National E-governance plan in May 2006 for adopting digital technology in governance; passing of Payment and Settlement Act in 2007 to facilitate digital payment through banks; and introduction of Aadhar project in 2009.

Era of Digital Revolution (2015 to Present)- India’s digital revolution or the mass adoption of digital technology began with launch of Digital India Mission on 01 July, 2015. It is a flagship programme of the Government of India with the vision to transform India into a digitally empowered society and knowledge economy. Digital India has been improving the lives of all citizens through the digital delivery of services, expanding the digital economy and employment opportunities. Within a short span of a decade, Digital India has numerous milestones and flagship initiatives, including developing broadband highways, universal access to mobile connectivity, public internet access programmes and digital governance (Digital India:2025). The introduction of the Unified Payments Interface (UPI) and the Bharat Interface for Money (BHIM) app in 2016 revolutionized digital payments in India, making transactions faster, easier, and more secure. This facilitated launch of JAM trinity (Janadhan Accounts, Aadhar identity, and Mobile) and direct benefits transfer to the beneficiaries of government schemes. This proved leakproof transfer of befits to the account of beneficiaries. The UPI and BHIM app promoted electronic transfer of money as well as e-commerce. BharatNet Phase II, was launched in 2017, which aims to extend high-speed broadband connectivity to 250,000 Gram Panchayats, bridging the digital divide in rural India. The  e-RUPI, a digital payment system, was introduced in 2021 to facilitate seamless and secure financial transactions, particularly for direct benefit transfers. The rollout of 5G services in 2022 marked a new chapter in India’s connectivity journey, promising faster internet speeds and transforming industries like healthcare and education.

At the same time, besides financial transaction, government introduced digital technology in health sector, agriculture, education, public service delivery and many other areas and promoted Starts up in the digital sector. Meanwhile many steps were also taken to ensure the digital security of users and data.

These steps and many other measures have brought India into the mainstream of digital revolution. India is now navigating the frontier areas of digital technology like the 6G technology, Quantum technology and AI technology to use them for her socio-economic development. The National Digital Communication Policy (NDCP) of 2018, aim to build robust digital infrastructure and expand broadband access across the country.  Government has launched India AI Mission in March, 2024 to promote use of trusted AI in India (PIB:2025).

          With this digital revolution, India’s digital economy has also experience boom in last one decade. Young demography, increasing internet and smartphone penetration, and relatively better economic performance are some key drivers of this sector. India’s digital economy grew 2.4 times faster than the economy since 2014 onwards. The size of the digital economy has grown from $107 billion in 2014 to 402 billion in 2022-23. It is expected that India would have the second largest universe of online shoppers by 2030, estimated at 500m to 600m.India’s Digital economy contributes 11 percent to the DGP now, which is expected to increase 20 percent by the year 2030.  With 830 Mn internet users, India is currently the 2nd largest internet market. As per the latest estimates, the number of Internet users has increased to 95 crores in 2025 (International Trade Administration : 2026). In 2021, digital wallets were the leading payment method for e-commerce transactions with a share of 45 percent (Digital India:2025a). Out of total 8.3 billion mobile subscriptions, India holds 1.4 billion mobile subscription, second largest after China’s 1.7 billion mobile subscription (Digital India : 2025a; PIB : 2025a).

India’s Cybersecurity Challenges

What is Cybersecurity?

In simple terms, the cybersecurity refers to the practice of protecting networks, devices, software, and sensitive data from digital attacks, unauthorized access, or damage. It aims to ensure information remains safe, private, and accessible by mitigating risks such as hacking, ransomware, and identity theft. According to Microsoft (2026), ‘Cybersecurity is a set of processes, best practices, and technology solutions that help you protect critical systems, data, and network from digital attacks.’ It further adds that an effective cybersecurity program includes people, processes, and technology solutions to reduce the risk of business disruption, data theft, financial loss, and reputational damage from an attack. According to the IBM (2026), ‘Cybersecurity is the practice of protecting people, systems and data from cyberattacks  by using various technologies, processes and policies.’  Common cybersecurity threats include ransomware, and other malware, phishing,   scams, data theft,   and more recently, attacks powered by  Artificial intelligence. In fact, cybersecurity is compromised with the presence of cyberthreats. The cyberthreat is nothing but the misuse of  same digital technology by some individuals or entities for disrupting the functioning of digital technology for ulterior motives. In brief, cybersecurity involves the use of appropriate procedure and technologies to protect the digital infrastructure, network and data from unauthorized access and use.

 Cyber-crimes in India

Cyber-crimes refer to deceptive activities carried out through digital platforms such as unauthorized access, data theft, or online scams, which are often intended to cause financial loss to victims. With the increase in the use of digital technology at mass scale in India, the problem of cybersecurity has also increased. At present 86 percent of India people are linked to internet. The use of digital technology has  benefitted in socio-economic development in India. But , at the same time, it has also widened the attack surface for cyber frauds, making cybersecurity a national priority. Thus, the cyber-crimes have been in increase in recent years. The cyber-crime incidents increased from 10.29 lakh in 2022 to 22.68 lakh in 2024. It reflects the growing scale and complexity of digital threats in India. At the same time, the financial toll is becoming more pronounced, with cyber frauds amounting to Rs 36.45 lakh reported on the National Cyber Crime Reporting Portal (NCRP) as of 28 February 2025 (PIB: 2025b). But more than that, the increasing number of cyber crimes in India has the potential to weaken the trust of people in adopting and using digital technology.

The cyber-crime may take diverse forms like identity theft, data theft, unauthorized money withdrawal, blackmailing and impersonation through deep fake. However,  a new genre of cyber-crime , known as digital arrest has become more frequent in recent years.  In the digital arrest scams, fraudsters impersonate law enforcement agencies or judicial authorities to extort money from citizens, particularly senior citizens by threatening them as accused in some crime. This has assumed so alarming position last year that the Supreme Court of India has to take a suo moto cognizance of the  digital arrest in December in 2025 after it was revealed that victims had been defrauded of nearly ₹3,000 crore through the mechanism of the digital arrest. The court initiated the proceedings by filing a case titled ‘In Re: Victims of Digital Arrest  Related to Forged Documents’ to address the pan-India cyber extortion crisis. The Supreme Court action followed after a complaint from a 73-year-old woman from Ambala, Haryana, who alleged that scammers used forged Supreme Court orders (Srivastava: 2025).

Measures to Ensure Cybersecurity

The government has been conscious about the pitfall of  massive digital expansion and has therefore taken various legal and institutional measures to ensure digital security in India.

  1. Legal Measures- There are two important legal acts passed by the parliament of India to ensure cybersecurity in India.

The first law is the Information Technology Act, passed in 2000 and modified in 2010. The Act recognizes the electronic means of communication and e-commerce and India, but at the same time provides for stringent punishment for various cybercrimes under sections 65-67. The cyber crimes covered under the act are: tempering with computer resource, computer hacking, selling or purchasing stolen computer,  identity theft, impersonation through digital media, violation of privacy, publishing sexually explicit material, child pornography and cyber-terrorism. The punishment for these crimes ranges from 3 years with fine to life imprisonment in case of cyber terrorism.

The government has also formulated rules under the IT Act, 2000. Under the rule, if intermediaries fail to remove the objectionable material on the direction of the government or the order of the court, they are likely to lose their safe horbour as third party.  These rules are up-dated from time to time, last up-dation being in 2026, where the take down time has been reduced. The directions are issued through online Sahyog Portal, maintained under the Ministry of Electronics and Information Technology.

The second act is the Digital Personal Data Protection Act (DPDPA), which was passed by the Parliament in 2023. This Act, provides safeguards for the protection of personal data by the agencies which collect such data in course of digital transactions. No personal data of a person can be used without the consent of the concerned person. Under the act, the person has absolute control over his/ her personal data collected by an entity during digital transaction.

Institutional Arrangement- The government of India has made various institutional arrangement to ensure digital security in India. The CERT In  (Computer Emergency Response Team India) was established in 2004 for addressing cyber threats. Cyber Swachhta Kendra (CSK) is a citizen-centric service  was launched by the CERT-In, which helps to detect malicious programs and provides free tools to remove the same. It also provides cyber security tips and best practices for citizens and organizations. The first ever National Cyber Security Policy was launched in 2013, which aimed at creating a secure and resilient cyberspace for citizens, businesses, and the government. It provided a framework to protect critical information infrastructure, reduce vulnerabilities, and build capabilities to prevent and respond to cyber threats. The National Critical Information Infrastructure Protection Centre (NCIIPC) was established in 2013 for protecting India’s critical public infrastructure (PIB: 2025c). Under the Ministry of Home Affairs, there is the Indian Cyber Crime Coordination Centre (I4C), which focuses explicitly on the coordination of law enforcement and combating cybercrimes at the national level. For ensuring cybersecurity in armed forces there is a separate tri-services agency known as Defence Cyber Agency . It has capability for handling offensive and defensive military cyber security.

Challenges before India’s Cybersecurity

In spite  of the many efforts made by the government to ensure cybersecurity in India, there are multiples gaps and challenges faced by the cybersecurity landscape in India. A Report on Cyber Security by NITI Ayog (Retrieved : 2026) finds the following vulnerabilities which are inherent in the digital landscape itself:

  1. Cyberspace has inherent vulnerabilities that cannot be removed 
  2. Innumerable entry points to internet.
  3.  Assigning attribution: Internet technology makes it relatively easy to misdirect attribution to other parties
  4. Computer Network Defense techniques, tactics and practices largely protect individual systems and networks rather than critical operations (missions)
  5. Attack technology outpacing defense technology
  6. Nation states, non-state actors, and individuals are at a peer level, all capable of waging attacks

 Some of the measure challenges before the cybersecurity in India are mentioned below:

  1. Gaps in Policy and Law- the National Cybersecurity policy, 2013 and the Information Technology Act, 2000 do not cover the entire range of the cybercrimes likely to be committed. For example, the Policy lacks actionable objectives and clear implementation timelines.  It fails to address the various challenges posed by the new technologies like the quantum computing, internet of things, or Artificial intelligence technology. The IT Act, 2025 does not cover various crimes like cyberbullying, and ransomware attacks.
  2. Inadequate Infrastructure- cyber security infrastructure in India is not adequate to handle the growing scale and sophistication of cyber threats. There is a shortage of skilled cyber security professionals, with demand far outstripping supply. Lack of trained cybercelebrity expert manpower undermines the practice of cybersecurity.
  3. Lack of Public Awareness- The rampant practice of digital arrest in recent years proves that people are not aware of legal mechanism as well as the functioning of digital technology. The cyber-crimes like phishing scams, identity theft, and social engineering attacks are prevalent, largely due to the lack of education and awareness campaigns (Rao : 2023).
  4. Lack of  Coordination Among Multiple Agencies- there are multiple agencies of the central and state government for addressing the challenge of cybersecurity in India. However, there is lack of coordination among these agencies of  to effectively handle the challenge of cybersecurity.
  5. Ever Evolving Nature of Digital Technology- The digital technology is always on the move. As we provide cybersecurity at one level, the technology moves to higher level. For example, now out data is secured through the password we use, because the available computing capacity cannot easily figure out such password. However, with the advancement in Quantum technology, the old system of pass words would be redundant, because it has the capability to figure out even the strongest passwords in minutes.

Conclusion

The digital, technology has immense potential for the socio-economic development, but it also has many threats and drawbacks. India’s digital development journey started way back in mid fifties and gradually evolved to into a day-to day experience in last seven decades. With the massive use of digital technology in various  personal and collective sphere like e-governance, education , health, agriculture, financial transaction and so on India has decisively entered now into the era of digital revolution. With 104 crores mobile subscriptions and 95 crores internet users, India hold second place in the world after China in terms of digital use and adoption. At the same time India is also navigation new frontier areas of Digital technology like 6G, Artificial Intelligence, Quantum Computing, robotics to keep pace with the global development. However, this massive use of digital technology has also raised the concern of cybersecurity. India has taken various legal and institutional measures to address the challenge of cybersecurity. But due number of factors such as gaps in the policies and law, lack of infrastructure and manpower, lack of coordination among agencies and lack of awareness among people about cybersecurity mechanism as well as the ever-evolving nature of digital technology, the challenges to India’s cybersecurity still persist. In order to strengthen the trust of people in digital technology, these challenges to cybersecurity need to be addressed on priority basis.

REFERENCES

Digital India (2025)  Digital India: Power to Empower, Digital Indian Website. Available At: (https://www.digitalindia.gov.in/about-us/)

Digital India (2025a) Growth Story. Digital India, 2025. Available At:  https://www.digitalindia.gov.in/growth-story/

IBM (2026) What is Cybersecurity? IBM, 2026. Available At: https://www.ibm.com/think/topics/cybersecurity

International Trade Administration (2026) Digital Economy:  India Country Commercial Guide. International Trade Administration: Official website of the US Government, 20 April, 2026. https://www.trade.gov/country-commercial-guides/india-digital-economy

LinkedIn (2024) India’s Digital Journey: From the First Byte to a Digital Powerhouse. Linked in, 15 August, 2024. Available At: https://www.linkedin.com/pulse/indias-digital-journey-from-first-byte-powerhouse-pagentra-f79xc/
Microsoft (2025) What is Cybersecurity? Microsoft, 2025. Available At: https://www.microsoft.com/en-us/security/business/security-101/what-is-cybersecurity

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PIB (2025) Transforming India with AI. PIB, 12 October, 2025. Available At: https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=155505&ModuleId=3&reg=48&lang=2
PIB (2025a) Future Ready: India’s Digital Economy to Contribute One-Fifth of National Income by 2029-30. PIB, 28 January, 2025. Available At:  https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2097125&reg=3&lang=2
PIB (2025c) Government of India Taking Measures to Protect Critical Infrastructure and Private Data Against Cyber Attacks. PIB, 28 march, 2025. Available At: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2116341&reg=48&lang=2
Rao M. (2023) Cybersecurity Awareness in India: A Rural-Urban Divide. Economic and  Political Weekly. 2023;58(7):18-25.

Shrivastava, A. (2025) Matter Of Grave Concern’ : Supreme Court Takes Suo Motu Case On Digital Arrest Scams Using Forged Court Documents. Live Law, 17 Oct 2025. Available At:
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Supreme Court of India (2025) SUO MOTO WRIT PETITION(CRIMINAL) No(s). 3/2025 IN RE: VICTIMS OF DIGITAL ARREST RELATED TO FORGED DOCUMENTS. Available At: https://api.sci.gov.in/supremecourt/2025/59769/59769_2025_1_28_66412_Order_01-Dec-2025.pdf

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