Introduction:
Internet outages have become a serious problem with far-reaching effects in the digital era where connectivity has become a necessity of daily life. According to recent reports, persistent internet outages cost India’s economy a staggering $1.9 billion in the first half of 2023. This blog explores the effects of periodic shutdowns on India’s economy, their underlying causes, and the pressing need for a fair solution to the problem.
The Economic Toll of Internet Shutdowns:
Internet blackouts, frequently imposed by governments to quell unrest or regulate information flow, are now commonplace in many regions of the world. However, as seen by the huge loss India has suffered, such actions have serious economic ramifications. The immediate impact on enterprises, entrepreneurs, and the country’s overall economic growth is demonstrated by a loss of $1.9 billion in just six months.
Business operations disruption:
Internet outages cause disruptions to businesses’ daily operations, especially those that depend on online platforms. The hardest hit by these closures are companies that rely on digital infrastructure, e-commerce, and IT services. Businesses will experience considerable losses in revenue, productivity, and customer trust as a result of the suspension of online transactions, disruption of supply chains, and severance of communication channels. This setback not only hurts established businesses, but it also slows down startup growth and prevents the creation of new jobs.
Stifling Digital Transformation and Innovation:
India’s economy has been working to promote an innovative and digital culture. Internet outages hinder development and deter investment in the digital industry. The uncertainty brought on by shutdowns makes it difficult for startups and technology companies to raise money and grow their businesses. India’s potential for technical progress, R&D, and global competitiveness is impeded as a result.
Internet Shutdowns:
Loss of Tourism and Foreign Investment:
Prior to making investment decisions, both domestic and foreign investors pay special attention to a country’s digital infrastructure’s stability and dependability. Shutdowns of the internet breed uncertainty and undermine investor faith. Foreign direct investment is discouraged by the $1.9 billion loss in the first half of 2023, which makes it evident to potential investors that India’s digital ecosystem is vulnerable to change. Additionally, the outages have an effect on the tourism industry because travellers need internet connectivity for a variety of tasks, including as making hotel reservations, discovering tourist attractions, and sharing experiences.
Internet shutdown causes:
It’s essential to comprehend the root causes of internet outages in India in order to develop workable remedies. These are a few typical causes of these interruptions:
keeping the peace and order:
Authorities frequently shut down the internet during times of unrest or to stop the dissemination of false information that could inspire violence. While upholding law and order is crucial, the blanket shutdown strategy has a severe impact on innocent people and hurts the economy.
worries about national security:
Internet blackouts are occasionally imposed to solve national security issues, such as stopping terrorist activity or preserving the integrity of critical data. While maintaining security is of the utmost importance, it is also necessary to strike a balance to limit disruptions to daily life and business operations.
Political Purpose:
Unfortunately, internet blackouts are occasionally used for political ends, such as to silence dissenting opinions or restrict information flow. This abuse of authority undercuts democratic ideals and suppresses free speech, which eventually harms the economy and the advancement of the country as a whole.
The Next Steps:
Adopting a comprehensive and balanced strategy is essential to reducing the negative effects of internet outages on India’s economy. Here are some suggestions to think about:
Targeted Actions:
Instead of using blanket internet shutdowns to preserve law and order or address national security concerns, authorities should look at other options. Enhancing surveillance capabilities and targeted restriction of particular websites or social media platforms might help address issues while limiting negative effects on the economy.
Regulatory Environment and Accountability:
It is crucial to put in place a clear legal framework for internet shutdowns. It should describe the circumstances under which shutdowns may be implemented, the length of time and area covered, and the establishment of court oversight procedures. Furthermore, it is essential to retain trust and defend individuals’ rights to ensure transparency and hold those accountable for arbitrary shutdowns.
Financial support for digital infrastructure:
India must make investments in reliable and resilient digital infrastructure to lessen the effects of internet outages. This involves boosting cybersecurity measures, extending internet access to rural areas, and encouraging digital awareness among the populace. A robust digital ecosystem can support economic growth and is more resistant to disturbances.
Internet Shutdowns:
According to a report released on Thursday, internet shutdowns by law enforcement organisations like those in Manipur and Punjab cost the Indian economy $1.9 billion (almost Rs. 15,590 crore) in the first half of 2023.
Internet Shutdowns:
The shutdowns also resulted in almost 21,000 job losses and a loss of foreign investment totaling approximately $118 million (around Rs. 968 crore), according to the global non-profit Internet Society’s study “Netloss”.
Internet Shutdowns:
The non-profit organisation calculated the shutdown’s financial impact by taking into account factors other than missed output, such as changes in the unemployment rate, lost foreign direct investment (FDI), potential for future shutdowns, and the population’s share of workers.
Internet Shutdowns:
“Governments frequently believe in error that shutting down the internet will calm unrest, curb the dissemination of false information, or lessen the harm caused by cybersecurity concerns. Shutdowns, however, severely impair economic activity, according to the research.
Internet Shutdowns:
According to the report, India has one of the greatest shutdown risks in the world as of 2023 due to its frequent use of shutdowns as a tactic to preserve public order. As of this year, the risk has been around 16 percent.
According to the report, shutdowns disrupt e-commerce, cause losses in time-sensitive transactions, raise unemployment, sever business-customer interactions, and expose organisations to financial and reputational concerns.
The 1992-founded nonprofit organisation made it plain that it opposes shutdowns and asked governments to hold off on adopting them because of the harm they cause to a country’s economy, civil society, and internet infrastructure.
According to Internet Society President and CEO Andrew Sullivan, “the global rise in internet shutdowns shows that governments continue to ignore the adverse effects of undermining the open, accessible, and secure nature of the global internet.”
Conclusion of Internet Shutdowns:
Policymakers and stakeholders should take note of the $1.9 billion loss to India’s GDP in the first half of 2023 caused by internet outages. Such acts have wide-ranging economic effects that obstruct development in a number of industries. India can combine security concerns and economic progress by implementing specific measures, creating a legislative framework, and investing in digital infrastructure. To ensure India’s sustained progress in the digital age, it is essential to provide priority to a stable and accessible digital environment.
SOURCE:
https://telecomtalk.info/indian-internet-shutdowns-cost-billion-in-first/726931/
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