India’s digital economy is expanding at an unprecedented pace, but cyber risks are deepening in parallel. Industry surveys indicate that more than 60 per cent of corporate leaders now view cybersecurity not merely as a technical function but as a central determinant of organisational performance, investor confidence and business continuity. Data theft, insider fraud and supply-chain attacks are directly impacting revenues and reputation, making security a strategic priority rather than an operational afterthought.
The rapid adoption of artificial intelligence is further complicating the risk landscape. While companies recognise that delaying AI adoption can hurt productivity, the absence of clear governance frameworks is creating new vulnerabilities. “Shadow AI” — the unauthorised use of AI tools by employees — is emerging as a major concern, increasing the likelihood of data leakage, compliance breaches and intellectual property risks. Traditional perimeter-based security models are proving inadequate in this new environment.
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Digital expansion widens the attack surface
Cloud migration, remote work and the proliferation of data-intensive applications have significantly expanded the corporate attack surface. Demand for threat detection, risk management, compliance and managed security services has risen sharply. This trend has also accelerated the growth of India’s cybersecurity industry, with hundreds of product companies now competing in global markets.
At the national level, India’s cyber preparedness has improved and the country ranks among the top tiers in global indices. However, the intensity of threats has increased simultaneously. Estimates suggest that Indian organisations face thousands of cyberattacks each week, with critical sectors such as education, healthcare, finance and manufacturing being prime targets. The scale of these attacks raises concerns about systemic risk.
Warning from the Future Crime Research Foundation
According to analysis by the Future Crime Research Foundation, cybercrime in India is becoming increasingly organised and transnational. The foundation identifies “digital arrest” scams, deepfake-enabled financial fraud, AI-driven phishing and corporate data exfiltration as key emerging threats. Insider data misuse and third-party vendor vulnerabilities have also been flagged as high-priority risks, exposing weaknesses in supply-chain security.
The foundation recommends board-level cyber governance, mandatory cyber audits, employee awareness programmes and stronger cross-border intelligence-sharing mechanisms.
AI-powered attacks: a new generation of threats
Generative AI has equipped attackers with more sophisticated tools, including deepfake voice fraud, highly personalised phishing and automated malware. Vulnerabilities such as prompt injection and model jailbreaks can expose sensitive data, making data-loss prevention, model monitoring and strict access controls essential components of modern security architecture.
Zero Trust and enterprise governance
Experts argue that companies must adopt a Zero Trust architecture, where every user, device and application is continuously authenticated. Enterprise-level AI governance, clear usage policies, regular audits and real-time threat intelligence need to become part of the boardroom agenda. Cybersecurity must be integrated into overall corporate risk management rather than confined to IT departments.
The need for collective action
Cyber threats transcend supply chains and national borders, making rapid information-sharing between industry, regulators and technology providers essential. Stronger data-protection enforcement, standardised cyber norms, skill development and public-private partnerships will be critical to reducing systemic risk.
The message is clear: cybersecurity is no longer a cost centre but the foundation of business resilience, investor trust and digital competitiveness. Enterprises that embed security into their core strategy will be best positioned to maintain a sustainable advantage in an AI-driven economy.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
