By Ashwani Mishra, Editor-Technology, 63SATS
At a time of increasing cyberattacks on government institutions, the Indian government has significantly ramped up its focus on cybersecurity. The 2024 interim budget saw the allocation for cybersecurity projects rise from Rs 400 crore in 2023-2024 to Rs 759 crore. However, despite this notable increase, the Union Budget 2024-25, presented yesterday, did not introduce any further changes in cybersecurity spending.
India has witnessed a dramatic increase in cyberattacks over the past five years.
According to the Home Ministry’s National Cyber Crime Reporting Portal, there have been around 7,000 complaints per day from January to May this year, with 85% of these complaints pertaining to online financial fraud. The financial repercussions are significant. The Indian Cybercrime Coordination Centre (I4C), the central government’s main agency for addressing cybercrime, recorded 4,599 complaints involving a total of Rs 1,203.06 crore in digital fraud from January to April this year, as reported by ANI
From Rs 30 Crore in 2022-2023 to Rs 759 Crore in 2024-2025
The cybersecurity budget has seen a dramatic rise over the past three years. In 2022-2023, the allocation was a mere Rs 30 crore. This figure increased significantly to Rs 400 crore for the 2023-2024 period and has now reached Rs 759 crore in the 2024-2025 budget.
This surge in funding underscores the government’s commitment to safeguarding the nation’s digital infrastructure, with most projects spearheaded by the Ministry of Electronics and Information Technology (MeitY).
The cost of cyberattacks is massive. The Indian Cybercrime Coordination Centre (I4C), the Central government’s nodal agency for tackling cybercrimes, said it received a total of 4,599 complaints involving a total of Rs 1,203.06 crore regarding digital fraud between January and April this year, as per an ANI report.
The latest budget has revealed allocations for various cybersecurity initiatives and agencies, but notably, it lacks a specific fund for the Indian Cybercrime Coordination Centre (I4C).
Here’s a breakdown of the key financial provisions related to cybersecurity:
No Dedicated Funds for I4C: Budget does not allocate specific funds for the Indian Cybercrime Coordination Centre.
CERT-In Receives Rs 238 Crore: India’s nodal agency for cybersecurity incidents is granted substantial funding.
Rs 52.8 Crore for Cybercrime Prevention: Allocation set aside for schemes targeting cybercrimes against women and children.
Data Protection Board of India Gets Rs 2 Crore: Funds designated for the new board’s operational expenses and member salaries.
Safeguarding Critical Infrastructure
One of the primary areas of focus for the increased cybersecurity funding is the protection of critical infrastructure. Government institutions and essential services have been prime targets for cyberattacks, making it imperative to strengthen defenses. The enhanced budget will enable the deployment of advanced security technologies and the development of comprehensive response strategies to mitigate the impact of cyber threats.
Tackling Deepfakes and AI Threats
The rise of deepfakes and AI-driven cyber threats poses new challenges for cybersecurity. The budget increase reflects the government’s recognition of these evolving dangers and the need for enforcement measures to combat them. With AI becoming a double-edged sword, the cybersecurity landscape must adapt to both leverage its benefits and counter its risks effectively.
Digital Personal Data Protection Act: Ethical AI Adoption
The Digital Personal Data Protection (DPDP) Act marks a significant step towards the ethical adoption of AI in India. The act aims to safeguard personal data and ensure that AI technologies are developed and used responsibly. The increased cybersecurity budget will support the implementation of this act, promoting a secure and ethical digital ecosystem.
Enhanced Funding for IT Ministry Initiatives
The 2024-25 budget has allocated Rs 21,936.90 crore to the Ministry of Electronics and Information Technology, up from Rs 16,549.04 crore in the previous year. This substantial increase will enhance several key initiatives:
Cybersecurity: Rs 759 crore
Digital India Programme: Rs 4,216.51 crore
IndiaAI: Rs 551.75 crore
Semiconductor Manufacturing: Rs 6,903 crore
PLI Schemes: Rs 6,200 crore
These allocations reflect a comprehensive approach to strengthening India’s digital infrastructure, fostering innovation, and ensuring cybersecurity resilience.
US and UK Cybersecurity Spending: A Comparative Analysis
The US Cybersecurity and Infrastructure Security Agency, which was established in 2018 and houses the country’s digital emergency response teams, had a budget of around $2 billion in 2021.
The fiscal 2025 proposal includes $3 billion for the Cybersecurity and Infrastructure Security Agency, a $103 million increase over the agency’s current budget.
UK’s former Deputy Prime Minister Oliver Dowden had in March this year said that they invested £2.6 billion on cyber-security and legacy IT. As reported by the Financial Times, the UK government’s conflict, stability and security fund doubled its spending on overseas cyber security programmes last year, in a sign of the growing threat to peace posed by online hackers.
