By Ashwani Mishra, Editor-Technology, 63SATS
In a significant move to strengthen India’s cyber defenses, the Union Budget 2025 has earmarked over â‚ą1,900 crore for cybersecurity projects and initiatives, marking a substantial increase from the â‚ą1,600 crore allocated in the previous fiscal year.
This surge in funding underscores the government’s growing concern over cyber threats that endanger national security and financial stability. With digital frauds and cybercrime on the rise, this allocation signals a proactive stance towards safeguarding critical infrastructure and citizens alike.
Breaking Down the Budget Allocation
A closer look at the numbers reveals how the increased funding is being distributed across key cybersecurity programs:
Cybersecurity Capital Projects: Allocated â‚ą782 crore, a modest increase from â‚ą759 crore in 2024-25.
Indian Computer Emergency Response Team (CERT-In): Received â‚ą255 crore, up from â‚ą238 crore last year.
Cybersecurity Initiatives for Women & Children: Faced a reduction, with â‚ą44.39 crore allocated compared to â‚ą52.85 crore previously.
National Mission on Interdisciplinary Cyber-Physical Systems: Saw a massive boost to â‚ą900 crore, up from â‚ą564.46 crore in 2024-25.
This budget increase aligns with Prime Minister Narendra Modi’s emphasis on tackling cyber threats, a topic he recently highlighted in the 115th episode of Mann Ki Baat. He specifically warned about the growing menace of online fraud, referencing alarming data from the Indian Cyber Crime Coordination Centre (I4C), which reported that scams related to stock trading and digital impersonation resulted in losses exceeding ₹11,300 crore in the past year alone.
Cybersecurity Funding: A Three-Year Surge
The allocation for cybersecurity has seen a remarkable rise over the past three years:
2022-2023: â‚ą30 crore
2023-2024: â‚ą400 crore
2024-2025: â‚ą759 crore
2025-2026: â‚ą782 crore
This steady increase reflects a long-term commitment to bolstering digital defenses in response to escalating cyber threats.
Safeguarding Critical Infrastructure
One of the primary objectives of this increased budget is securing India’s critical infrastructure. Government institutions, financial systems, power grids, and healthcare networks have increasingly been targeted by cyberattacks, making it imperative to fortify defenses. The additional funding will facilitate:
- Deployment of advanced security technologies
- Implementation of robust threat intelligence mechanisms
- Development of incident response frameworks
- Cybersecurity awareness programs across industries
With digital transformation accelerating across sectors, these initiatives will play a crucial role in mitigating cyber risks and ensuring the resilience of national infrastructure.
The Rise of AI-Powered Cyber Threats
The growing menace of deepfakes and AI-driven cyberattacks is another critical challenge. Cybercriminals are leveraging artificial intelligence to create sophisticated phishing scams, identity fraud, and misinformation campaigns. The government’s increased budget signals its recognition of these emerging threats and the need for AI-powered cybersecurity solutions.
A 138% surge in cyberattacks on government entities between 2019 and 2023 highlights the urgency of these measures. Minister of State for Electronics and IT, Jitin Prasada, recently revealed that reported incidents escalated from 85,797 in 2019 to 2,04,844 in 2023, painting a grim picture of India’s cybersecurity landscape.
Cyber Fraud: A National Economic Threat
Beyond government entities, the private sector and individuals are also facing unprecedented cyber risks. Data from the Indian Cyber Crime Coordination Centre (I4C) shows that cyber frauds resulted in ₹11,333 crore in financial losses in the first nine months of 2024 alone. Experts predict that these losses could exceed ₹1.2 lakh crore in 2025, an amount equivalent to 0.7% of India’s GDP.
What Lies Ahead?
While the increased funding is a positive step, experts argue that India still needs a more holistic cybersecurity strategy.
Some key recommendations include:
- Strengthening public-private partnerships to enhance threat intelligence sharing.
- Mandating cybersecurity compliance for businesses and financial institutions.
- Expanding the scope of CERT-In to cover emerging cyber threats.
- Launching targeted cybersecurity training programs to bridge the skills gap.
- Implementing strict regulations on AI-generated deepfakes to curb misinformation.
A Critical Investment in National Security
The â‚ą1,900 crore allocation for cybersecurity in the Union Budget 2025 represents a much-needed investment in national security.
However, as cybercriminals continue to evolve, India must adopt agile and adaptive cybersecurity policies. Strengthening cyber resilience, improving regulatory frameworks, and investing in cutting-edge technologies will be key to ensuring a secure digital future.
With cyber threats now a national security priority, the government’s commitment to cybersecurity funding is not just an economic decision—it is an imperative for safeguarding India’s digital sovereignty.