India Incurs $1.9 Billion Loss Due to Internet Shutdowns in Jan-Jun 2023

A recent report by the global non-profit organization Internet Society has unveiled the detrimental impact of internet shutdowns conducted by law enforcement agencies in Manipur and Punjab. These shutdowns have resulted in a significant economic loss of $1.9 billion (approximately Rs. 15,590 crores) for the Indian economy during the first half of 2023.

The report, titled 'Netloss,' provides valuable insights into the adverse effects of such shutdowns, including job losses and a decline in foreign investment.

Shutdowns Severely Disrupt Economic Activities

Contrary to the misconception that internet shutdowns can help control unrest, curb the spread of misinformation, or address cybersecurity threats, the report emphasizes that these measures severely disrupt economic activities. The repercussions extend far beyond immediate output loss and impact various aspects of the economy.

Job Losses and Decline in Foreign Investment

The internet shutdowns in Manipur and Punjab have led to significant job losses, with over 21,000 individuals being affected. Moreover, the economic consequences include a decline in foreign investment, amounting to approximately $118 million (nearly Rs. 968 crores).

Factors Considered in Assessing Economic Impact

To comprehensively evaluate the financial implications, the report takes into account multiple factors. These include changes in the unemployment rate, lost Foreign Direct Investment (FDI), risks of future shutdowns, and the working-age population. By considering these variables, the report provides a holistic assessment of the overall economic impact.

India's High Risk of Internet Shutdowns

India ranks among the countries with the highest risk of internet shutdowns globally. In 2023, the risk percentage stands at 16%, primarily due to the frequent use of shutdowns to maintain public order. This highlights the urgency of addressing the issue and finding alternative approaches that balance public order concerns with the preservation of a thriving digital ecosystem.

The Call to Refrain from Internet Shutdowns

The Internet Society, established in 1992, takes a strong stance against internet shutdowns and urges governments to refrain from implementing them. The organization emphasizes the detrimental consequences that undermine the open, accessible, and secure nature of the global internet.

Andrew Sullivan, the President and CEO of the Internet Society, voices concern over the increasing trend of internet shutdowns worldwide and the need for governments to consider the negative impact on economies and societies.

Via