Cybersecurity in Indian Industry: From Risk to Resilience

Technology has been a driving force in shaping the Indian industry, enabling greater efficiency, scalability and accessibility. However, with swift technological advancements, protection of IT infrastructure and data has become a key concern for industries across every sector. 

While digitization is the need of the hour, it has also exposed businesses to cyberattacks which can compromise sensitive information and disrupt core services. The use of AI, cloud migration and fintech expansion to improve efficiency and reduce costs has also brought heightened risks to organisations that must strive to protect their assets, reputation and customers. 

Key Risks Indian Industries Face 

According to the Indian Computer Emergency Response Team (CERT-In), 20,41,360 cyber security incidents were reported in 2024, a massive jump from 15,92,917 incidents in 2023. 

Some of the most common cyber risks Indian industries face include phishing attacks, ransomware and data encryption, data breaches, supply chain attacks and cloud misconfigurations. Attackers are also using AI to exploit identity vulnerabilities and bypass defenses using social engineering techniques. This includes deepfakes that enable large-scale  impersonation scams,  Business Email Compromise (BEC) attacks and misinformation campaigns. Malicious Large Language Models (LLMs) has allowed less skilled actors to craft convincing phishing emails, generate malware, and exploit vulnerabilities. 

With remote work and rapid adoption of cloud services, the attack surface has widened for attackers. They are now exploiting publicly accessible storage buckets or default credentials and infiltrating organizations with inadequate cloud configurations or insufficient security controls. 

The Banking, Financial Services and Insurance (BFSI) sector is particularly vulnerable to cyber risks. The interconnected nature of the BFSI ecosystem means that a single cyberattack can have systemic repercussions, impacting multiple entities beyond the initial target. The first Digital Threat Report 2024 for the BFSI sector recommends frontline audits, incident analysis, closed control gaps and solid defenses to remain adaptive against emerging threats. 

Role of Regulations and Government 

The government, taking cognizance of the increasing frequency and sophistication of cyberattacks in the country has taken several legal, technical, and administrative policy measures for addressing cyber security challenges in the country. These include the National Cyber Security Policy (NCSP) to build a secure and resilient cyberspace for citizens, businesses and government along with National Cyber Coordination Centre (NCCC) to scan the cyberspace in the country and detect cyber security threats. Under the provisions of section 70A of the IT Act, 2000, the government has also established the National Critical Information Infrastructure Protection Centre (NCIIPC) for protection of critical information infrastructure in the country.

The Digital Personal Data Protection (DPDP) Act, 2023 is India’s first data protection act and regulates the processing of digital personal data. Since the act mandates proper collection, storage and processing of personal data, companies across various sectors must strengthen cybersecurity frameworks for the same. 

Challenges and Future Trends

Large number of MSMEs in India have limited cyber budgets, making their businesses susceptible to cyberthreats that can halt operations. Furthermore, talent shortage, lack of awareness and cyber hygiene in employees further worsen the situation. These gaps lead to increasing dependency of foreign technologies and supply chains that undermine indigenous growth and create strategic vulnerabilities. 

Looking ahead, Indian industries must invest in AI-driven security solutions, zero-trust framework, indigenous cybersecurity products and cyber insurance. Awareness training must be carried out on an industry level with phishing simulations and insider threat mitigation to reduce cyber incidences. 

As Indian industries continue its journey of rapid digital transformation, the importance of effective cybersecurity practices cannot be overstated. By taking proactive steps to enhance security postures, organisations can effectively address the evolving cyber threat landscape. Commitment to continuous improvement and vigilance ensures that these industries remain resilient in the face of emerging vulnerabilities and safeguard their operation, ensuring robust growth.