Internet outages in India cost the country's economy $1.9 billion in the first half of 2023, according to a new report

Internet shutdowns by law enforcement authorities, such as those in Manipur and Punjab, cost the Indian economy $1.9 billion (almost Rs. 15,590 crore) in the first half of 2023, according to a research released on Thursday.

According to the worldwide non-profit Internet Society's study 'Netloss,' the shutdowns cost almost $118 million (roughly Rs. 968 crore) in foreign investment and resulted in over 21,000 job losses.

The non-profit calculated the financial effect of the closure, which included elements such as changes in the unemployment rate, lost Foreign Direct Investment (FDI), chances of future shutdowns, and population in the working age.

"Governments frequently mistakenly believe that shutting down the internet will quell unrest, stop the spread of misinformation, or reduce the harm caused by cybersecurity threats." "However, shutdowns are extremely disruptive to economic activity," according to the paper.

The constant use of shutdowns as a weapon to preserve public order in India has resulted in a shutdown risk of 16% so far this year, one of the highest in the world as of 2023, according to the report.

Shutdowns impede e-commerce, cause losses in time-sensitive transactions, raise unemployment, disrupt business-customer relationships, and expose organisations to financial and reputational hazards, according to the report.

The non-profit founded in 1992 said unequivocally that it is opposed to shutdowns and urged governments to desist from enacting them owing to the harm they cause to a country's economy, civil society, and internet infrastructure.

"The global rise in internet shutdowns shows that governments continue to ignore the negative consequences of undermining the open, accessible, and secure nature of the global internet," said Internet Society president and CEO Andrew Sullivan.