The technology industry’s expectations for the Budget highlight the essential role that digital infrastructure, identity and security will play in India’s ambitious journey to become a global technology hub.
A key element of this effort is the Digital Personal Data Protection (DPDP) Act., kickstarting ethical AI adoption. The industry recognizes the DPDP Act as a fundamental step in enforcing responsible data practices and ensuring a balance between fostering innovation and regulating data use. His DPDP Act, with penalties for unethical use, will set the stage for a secure and compliant digital environment. Implementation and enforcement of the DPDP Act is critical to aligning the country more closely with international privacy standards.
Deepfakes and AI: Growing threat requires increased enforcementRecent events such as the Lucknow case where a woman was defrauded of Rs 32,000 by cybercriminals by using AI to imitate her voice highlight the growing dangers of deepfakes and AI manipulation. . The government’s growing concerns about her KYC fraud, including deepfakes, further emphasizes this threat. The Treasury Department’s directive to banks to prepare for the risk of deepfakes shows the need to strengthen cybersecurity measures. The 2024 budget should allocate resources to education, policy development, research and development, and the introduction of strong cybersecurity measures that can detect and prevent incidents where individuals’ voices are cloned to deceive people.
Research and Development: The Foundation for Cybersecurity Excellence
A forward-looking cybersecurity strategy requires continuous research and development (R&D) efforts. The 2024 budget should allocate funding for cybersecurity research and development projects and foster collaboration between industry and academia. In the development of cutting-edge technology for cybersecurity, the role of the government in supporting industry-academia collaboration has become extremely important. Collaborations between banks and fintechs and insurance companies and insurtechs that lead to customer service innovations highlight the importance of research and development. Having a dedicated budget for cybersecurity research can pave the way for innovation to stay ahead of evolving cyber threats.Incentives for cybersecurity and cyber insurance adoption: Closing the resource gap
Small and medium-sized enterprises (SMEs) face challenges in implementing even basic cybersecurity measures due to resource constraints. Combining budgetary incentives with increased adoption of cyber insurance creates a synergistic approach. This not only encourages companies to invest in cybersecurity, but also provides a safety net after a cyberattack. Additionally, funding will be dedicated to national awareness campaigns, educational initiatives, and the development of cybersecurity best practices for both individuals and businesses to reduce the impact of cyber threats and increase individual preparedness. can.
SBI Chairman Dinesh Khara’s call to reassess the goals highlights the need for incentives and support for private conceptualization and structuring. Budget allocations in this area ensure that businesses of all sizes contribute to the nation’s overall cybersecurity resilience.
The 2024 budget should allocate funding to develop and strengthen incident response capabilities. Additionally, increasing the adoption of cyber insurance among businesses can provide a financial safety net following a cyber attack. Combining robust incident response mechanisms with cyber insurance ensures a holistic enforcement approach to managing and mitigating the impact of cyber incidents.
Protecting critical infrastructure
State-sponsored cyberattacks on critical infrastructure can hinder a country’s economic growth. Intensifying and centralizing efforts to protect critical infrastructure is a national necessity, and this is essential to avoid significant losses in the event of a cyberattack. The 2024 Budget must prioritize funding for efforts to strengthen the cybersecurity resilience of critical sectors. Protecting the country from potential economic losses requires a robust cybersecurity framework enforced through strict policies.
At the same time, allocate funds to mandate cyber insurance for public sector undertakings (PSUs), power and energy sectors, banks, financial services and insurance (BFSI), and healthcare sectors to reduce financial risks in the event of a catastrophe. becomes essential.
Strengthening Cybersecurity: A Strategic Step towards Global Leadership
Strengthening cybersecurity is more than just a defensive measure. This is a strategic step towards establishing India as a global leader in technology and innovation. The next budget is an opportunity to work toward realizing this vision and protect the nation from the evolving cyber threats of the digital age. India is investing in digital infrastructure, research and development, skills development and international cooperation, increasing its commitment to building a secure and innovation-friendly digital ecosystem. The budget that enables these initiatives is a testament to India’s dedication to becoming a global technology powerhouse.
The author is the co-founder of Mitigata: Smart Cyber Insurance.