Reportedly costing India's economy $1.9 billion, Internet shutdowns in Manipur and Punjab

Manipur and the
Punjab’s recent internet outages have had a devastating impact on India’s
economy. The shutdowns cost the economy around $1.9 billion, led to the loss of
roughly $118 million in foreign investment, and accounted for the loss of about
21,268 jobs. These startling numbers demonstrate the perilous effect that
internet blackouts have on India’s economy. The Net Loss calculator created by
the Internet Society predicts that by 2023, India would have a significant
shutdown risk, reaching 16 percent, due to its frequent usage of such shutdowns
to maintain public order.

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The goal of the Net Loss
calculator, which is housed on The Internet Society’s Pulse Platform, is to
determine the global economic impact of internet outages. According to the
tool, India faces one of the greatest shutdown risks in the world. India could
be hindering its own economic development if it continues to rely on broadband
shutdowns.

A record number of
internet outages will affect people all across the world in 2022. At times of
civil upheaval, school examinations, and elections, governments around the
world have restricted or completely blocked internet access and services. The
afflicted countries’ economies have suffered greatly as a result of these
moves.

The surge in internet
shutdowns around the world is indicative of the government’s indifference to
the consequences of eroding the internet’s open, accessible, and secure nature.
The Internet Society’s President and CEO Andrew Sullivan warn that governments
must acknowledge the negative consequences of such measures.

Governments typically wrongly
believe that cutting off internet access will prevent protests, stop the
dissemination of false information, or reduce cyber security concerns,
according to a report by the Internet and American National Security Alliance
(IANS). However, in practice, the effects of these shutdowns on economic
activities are widespread. They hamper online trade, raise unemployment rates,
interrupt business-customer relationships, and put organisations in danger of
losing money and losing face.

According to the study,
losing access to the internet can have serious consequences for a country’s
economy, both short- and long-term. Evidence suggests a favorable relationship
between internet penetration and GDP. When governments restrict citizens’
access to the Internet, they stifle innovation and dampen economic growth.

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