Internet shutdowns cost India a total of 1.9 billion USD in the first half of 2023

The study also found that India has one of the greatest shutdown risks in the world at 16% so far in 2023 as a result of its frequent usage of shutdowns to preserve public order.

According to a research published on Thursday by the international non-profit Internet Society, the Punjab and Manipur internet shutdowns by law enforcement authorities cost the Indian economy a stunning 1.9 billion USD in the first half of 2023. The report, dubbed "Netloss," went on to note that these closures also resulted in a drop in foreign investment of around $118 million and the loss of over 21,000 jobs according to a PTI report.

According to the non-profit's calculations, these shutdowns had a greater financial impact than just the temporary loss of output. The analysis considered variables such shifts in the unemployment rate, lost Foreign Direct Investment (FDI), dangers of upcoming shutdowns, and the population of people of working age.

Despite law enforcement authorities' best efforts to stifle unrest, stop the transmission of false information, and deal with cybersecurity risks, the report stressed how disruptive internet outages are to economic activity. The study also found that India has one of the greatest shutdown risks in the world at 16% so far in 2023 as a result of its frequent usage of shutdowns to preserve public order.

The Internet Society, which was established in 1992, declared its adamant opposition to shutdowns and urged governments to hold off on enacting them because of the significant harm they cause to a country's economy, civil society, and Internet infrastructure.

The president and chief executive of the Internet Society, Andrew Sullivan, drew attention to the rising number of internet outages around the world and chastised governments for ignoring the harmful effects of eroding the open, usable, and safe nature of the global internet.

Shutdowns have a variety of negative repercussions on the economy. They interfere with e-commerce, result in losses in time-sensitive transactions, raise unemployment rates, obstruct interactions between businesses and customers, and present threats to a company's finances and reputation.