Major Cyber Threats Facing India in 2025

India continues to grapple with a range of cyber threats in 2025, driven by both internal and external actors.

• Ransomware Attacks: Cybercriminal groups, often backed by nation-states, are increasingly targeting Indian businesses and critical infrastructure. In 2024, India saw a surge in ransomware incidents, with notable attacks on healthcare and education sectors.

• Data Breaches: With the rise of digital services, data breaches have become more frequent. In 2025, India faces heightened risks due to inadequate data protection and regulatory enforcement.

• State-Sponsored Cyber Attacks: Foreign actors, particularly from neighboring countries, continue to target Indian government and defense networks, attempting to steal sensitive data and disrupt national security.

• Social Engineering and Phishing: With growing internet penetration, phishing attacks and social engineering schemes are becoming more widespread, impacting individuals and businesses alike.

Effectiveness of Government Initiatives

• National Cyber Security Policy 2020: While the policy outlines a broad vision for cybersecurity, its implementation has been slow, especially in terms of capacity building and enforcement.

• CERT-In and NCIIPC: The National Critical Information Infrastructure Protection Centre (NCIIPC) and CERT-In are actively responding to incidents, but gaps remain in real-time coordination and threat intelligence sharing.

Strengthening India’s Cybersecurity Framework

• Enhanced Public-Private Collaboration: Strengthening partnerships between the government and tech companies to improve threat intelligence sharing and incident response.

• Cybersecurity Education & Training: Focus on building a skilled cybersecurity workforce through education and public awareness campaigns.

• Stronger Regulations: Introduce stricter data protection laws and enforce compliance for both private and public entities.

BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) plays a crucial role in advancing India’s Act East and Neighbourhood First policies by fostering regional cooperation in the Indo-Pacific. It connects India with Southeast Asia and South Asia, enhancing trade, security, and connectivity. For example, BIMSTEC’s infrastructure projects, like the India-Myanmar-Thailand Trilateral Highway, enhance India’s connectivity to ASEAN nations, supporting its Act East policy.

However, BIMSTEC faces challenges such as political differences, slow decision-making processes, and uneven economic development among member countries. These hinder its potential to act as a cohesive regional force.

To strengthen its role, BIMSTEC should prioritize institutional reforms, streamline decision-making, and enhance cooperation in emerging areas like cybersecurity and climate change. Additionally, expanding its economic integration and strategic cooperation, particularly with key Indo-Pacific partners like Japan and the U.S., will help bolster its significance in regional stability and prosperity.

Significance of MSMEs in India’s Economy

Micro, Small, and Medium Enterprises (MSMEs) are pivotal to India’s economic framework, contributing significantly to employment, GDP, and exports.​

• Employment Generation: MSMEs account for approximately 70% of total employment worldwide. In India, these enterprises provided employment to 111.4 million individuals as of 2024.

• Economic Contribution: MSMEs contribute around 35% to India’s GDP and over 40% of the country’s exports, underscoring their role as the ‘growth engines’ of the economy. ​

Key Challenges Faced by MSMEs

Despite their importance, MSMEs encounter several obstacles hindering their growth:

• Access to Finance: Limited access to formal credit remains a significant challenge, with nearly half of MSMEs reporting difficulties in obtaining financing. ​

• Technological Advancements: Many MSMEs struggle with low productivity due to inadequate adoption of modern technologies and innovation. ​

• Regulatory Hurdles: Complex regulatory frameworks and compliance requirements often overwhelm small business owners, diverting focus from core operations.​

Government Initiatives Supporting MSMEs

The Indian government has implemented various measures to bolster the MSME sector:

• Credit Guarantee Scheme: In Budget 2023, the government revamped the Credit Guarantee Scheme with an allocation of ₹9,000 crore to enhance credit flow to MSMEs. ​

• PMEGP Scheme: The Prime Minister Employment Generation Programme (PMEGP) provides financial assistance to set up micro-enterprises, promoting self-employment and job creation. ​

• Technology Upgradation: Initiatives like the Technology Upgradation Fund Scheme (TUFS) aim to modernize MSME operations, improving productivity and competitiveness.​

Recent Developments and Effectiveness

Recent data reflects positive trends in the MSME sector:

• Job Creation: From October 2023 to September 2024, MSMEs added approximately 11 million jobs, increasing total employment to 120.6 million. ​

• Business Growth: The number of small businesses grew from 17.83 million to 20.15 million during the same period, indicating a thriving entrepreneurial landscape.​

However, challenges persist:

• Wage Growth vs. Inflation: Average annual wages rose by 13% to ₹141,071, but this increase was tempered by a 5.5% inflation rate, affecting real income growth.​

• Access to Formal Credit: Despite government efforts, a significant number of MSMEs still face barriers in accessing formal financing, limiting their growth potential.

Conclusion

MSMEs are indispensable to India’s economy, driving employment and economic growth. While government initiatives have yielded positive outcomes, continuous efforts are needed to address existing challenges, ensuring sustainable growth and competitiveness in the global market.

Introduction: Urbanization in India

India’s urban population has grown rapidly, with cities like Mumbai, Delhi, and Bangalore witnessing significant expansion. By 2031, it’s estimated that over 40% of India’s population will live in urban areas, creating both opportunities and challenges for urban planning.

Key Challenges:

1. Overpopulation and Infrastructure Strain

   • Cities are overwhelmed with an increasing population, resulting in inadequate infrastructure (roads, water supply, sanitation).

   • Example: Delhi’s population is expected to surpass 30 million by 2030, creating massive pressure on resources.

2. Environmental Degradation

   • High pollution levels, deforestation, and waste management issues exacerbate environmental concerns.

   • In 2023, 22 of the world’s 30 most polluted cities were in India, highlighting the urgency for cleaner air and waste management solutions.

3. Affordable Housing Crisis

   • The shortage of affordable housing leads to the growth of informal settlements (slums), creating socio-economic disparities.

Measures for Holistic Development:

1. Smart Urban Planning

   • Prioritize sustainable urban designs with mixed-use developments and efficient public transportation systems.

2. Investment in Green Infrastructure

   • Implement solar energy projects and green spaces to combat pollution and reduce energy consumption.

3. Strengthen Policy and Governance

   • Improve urban governance, enforce environmental regulations, and incentivize sustainable businesses.

By integrating these measures, India can ensure its cities remain sustainable and livable for future generations.

Policing in India faces several challenges that hinder its effectiveness and accountability. Addressing these issues requires comprehensive reforms.

Key Issues in Indian Policing

• Colonial Legacy: The current police system is based on the Indian Police Act of 1861, designed during British rule to suppress dissent. This framework often subjects police forces to political influence, compromising their autonomy and efficiency.

• Staff Shortages and Resource Constraints: There’s a significant shortfall in police personnel, with state forces facing up to 24% vacancies. This shortage, coupled with inadequate training and resources, hampers effective law enforcement.

• Political Interference: Excessive political control over postings, transfers, and operational matters affects the impartiality of the police, leading to selective enforcement and eroding public trust.

• Emerging Threats: The rise in cybercrimes, including sophisticated scams utilizing AI and deepfake technologies, demands advanced skills and tools that many police units currently lack.

Suggested Reforms

• Structural and Legal Overhaul: Enacting new legislation to replace the colonial-era Police Act, ensuring police autonomy and reducing political interference, is crucial for modernizing the force.

• Enhanced Training and Capacity Building: Investing in continuous training programs to equip officers with skills to tackle modern challenges, including cyber threats, is essential.

• Community Policing Initiatives: Building strong community relationships can enhance trust and cooperation, leading to more effective crime prevention and resolution.

• Independent Oversight Mechanisms: Establishing autonomous bodies to oversee police conduct can ensure accountability and address public grievances impartially.

• Resource Augmentation: Allocating adequate funds for modern equipment, technology, and infrastructure is vital to support the evolving demands of law enforcement.

Implementing these reforms can transform India’s police system into a more effective, accountable, and citizen-friendly institution.