India faced a significant economic setback in 2023, with internet shutdowns costing the country a staggering $584 million, according to a report by UK-based review platform Top10VPN. The report sheds light on the widespread consequences of 7,812 hours of internet blackouts and 144 hours of social media shutdowns, impacting 59.1 million individuals across the nation. India, ranking fifth among 25 countries with the highest number of internet shutdowns globally, witnessed 30 major incidents during the year.
The report highlights the localized nature of these shutdowns, often occurring in response to civil unrest, sometimes preemptively. Notably, the economic loss in 2023 surpassed both 2022 ($184.3 million) and 2021 ($583 million), underscoring the escalating impact of internet disruptions on the country’s economy.
Manipu,r a state in Northeastern India, emerged as the most affected region, contributing $318 million to the overall economic loss. The report attributes the shutdowns in Manipur to a variety of instances throughout the year. Other affected regions include Haryana, Punjab, Bihar, Maharashtra, Uttar Pradesh, Jammu & Kashmir, among others.
Globally, Top10VPN estimates that the economic cost of internet shutdowns reached $9.01 billion in 2023, spanning 79,238 hours of government-imposed disruptions. India’s contribution to this global loss stands at nearly 6.5%.
Internet shutdowns in India have become a recurring issue, with 92 incidents reported in 2023, and the country already witnessing an instance in 2024, as per SFLC.in’s internet shutdown tracker. The government’s tendency to clamp down on specific websites and influence social media platforms to remove content has sparked conflicts with digital rights activists.
The economic impact of these disruptions is substantial, as many individuals rely on online services for commerce and information. The resultant reduction in trade contributes to the overall economic cost of such internet shutdowns.
