Internet Shutdowns in India Cost USD 2 Billion to Economy

Internet shutdowns by law enforcement agencies in many parts of the country have caused a loss of about $ 1.9 billion (about Rs 15,590 crore) to the economy in the first half of the current year. The internet was shut down in Manipur, the northeastern state of the country, due to the violence that has been going on for the last few months. Earlier, internet was banned in Punjab also due to fear of violence.

The international non-profit organization Internet Society has Report It has been told in ‘Netloss’ that due to internet shutdown, there has been a loss of about 118 million dollars of foreign investment. To assess the financial impact of this shutdown, factors such as changes in the unemployment rate, loss of Foreign Direct Investment (FDI) and working age population were included. The report said, “Governments often misjudge that Internet shutdowns will prevent tensions, the spread of misinformation, or reduce cybersecurity threats, but shutdowns cause huge losses to the economy. ”

Along with this, the report states that due to regular use of shutdown to maintain law and order in India, the risk of shutdown this year is 16 percent. Internet shutdowns disrupt e-commerce, increase unemployment and pose financial and reputational risks to companies. The Internet Society made it clear several years ago that it was against the shutdown. It had urged governments to avoid shutdowns as they harm the economy, civil society and internet-related infrastructure. Cases of internet shutdown are continuously increasing in India. States often restrict the internet to prevent tension and violence due to some issue. Due to this, people face difficulty in many important tasks.

Andrew Sullivan, President and Chief Executive of the Internet Society, said, “The increasing number of Internet shutdowns around the world shows that governments are ignoring the negative consequences of weakening the need to keep the Internet open, accessible and secure.” Is doing.”