Experts Call for Increased Spending on Incident Management Systems in Budget 2025-26 As we approach the Union Budget 2025-26, industry experts are emphasizing that cybersecurity must take center stage in discussions about protecting India's fast-expanding digital ecosystem

India's digital journey is nothing short of extraordinary. With over 971.50 million internet users and a penetration rate of 67.03 per cent, the country is reshaping its future at an unprecedented pace. In October 2024 alone, India processed a jaw-dropping 16.58 billion UPI transactions worth INR 23.49 lakh crore, capturing nearly half the global share of real-time payments.

This incredible achievement highlights India's technological dominance but also serves as a wake-up call to address the rising risks in cybersecurity and cybercrimes.

As we approach the Union Budget 2025-26, industry experts are emphasizing that cybersecurity must take center stage in discussions about protecting this fast-expanding digital ecosystem.

The Union Budget 2024-25 allocated INR 1,550 crore for cybersecurity, cybercrime prevention, and AI research. This marked a significant leap from previous years, with INR 759 crore were dedicated to cybersecurity infrastructure—a near 90 per cent increase.

"This budget nearly doubled government spending on cybersecurity projects compared to the previous year," observed Probir Roy Chowdhury, Partner at JSA Advocates & Solicitors. However, he pointed out areas needing further attention. "Spending in other critical areas, like funding CERT-In, has remained stagnant. The government must prioritize spending on cybersecurity and cyber incident management systems to ensure individuals, businesses, and public entities are better protected from cyberattacks."

The Indian Computer Emergency Response Team (CERT-In) was allocated INR 238 crore to strengthen its ability to handle cybersecurity incidents. Additionally, schemes aimed at protecting vulnerable groups, such as women and children, from cybercrimes received INR 52.8 crore.

This year, we can expect the government to increase its spending on such initiatives.

However, challenges like deepfakes and dark web exploitation are evolving rapidly. According to media reports, from January 1 to November 15, 2024, over 92,323 cases of digital fraud were reported across India, with losses amounting to INR 2,140.99 crore.

Even prominent influencers, such as Ankush Bahuguna, have fallen victim to cybercrimes. He was "digitally held hostage" by scammers for nearly 40 hours and also suffered financial losses, though the exact amount has not been disclosed.

"Highly advanced deepfakes have made people reconsider whether what meets the eye is the truth," said Sunil Sharma, Vice President - Sales, Sophos India and SAARC. He stressed the need for proactive measures, adding, "Investments in cutting-edge threat detection and incentivizing secure digital practices are essential for India's digital transformation."

This sentiment was echoed by Mandar Patil, SVP of International Market & Customer Success at Cyble, who emphasized the need for advanced threat intelligence and mandatory dark web monitoring. "These measures are crucial to safeguarding our digital future and maintaining the trust of businesses and citizens alike," he said.

In the previous budget the IndiaAI Mission was allocated nearly INR 551 crore, while the Centre of Excellence in AI at IIT Kharagpur was allocated INR 255 crore to advance research in AI and other emerging technologies.

"As enterprises take on digital transformation or AI adoption, the focus on cybersecurity may fall by the wayside as there is a gap between supply and demand of skilled cybersecurity resources," noted Sunil Sharma. "Mitigating this issue requires investments in cybersecurity courses in educational institutes as well as continuous skilling opportunities for those already working. This will ensure that enterprises remain abreast with knowledge about all possible risks as well as the solutions."

Pinkesh Kotecha, Chairman and Managing Director of Ishan Technologies, also emphasized the importance of skilling. "Public-private partnerships, incentives for adopting advanced security solutions, and focused efforts on skill development will empower businesses to stay ahead of cyber threats," he said.

"With the recent introduction of the Digital Personal Data Protection (DPDP) Act rules, India has made significant strides in establishing a strong foundation for data protection and privacy. Ahead of the Union Budget 2025-26, we look forward to measures that will further strengthen the nation's cybersecurity framework," Sharma concluded.