Impact of Internet Shutdowns on Economic Stability

Internet shutdowns significantly disrupt economic activities and deter foreign investment in India. The rationale behind these shutdowns is often to prevent misinformation during times of unrest, yet the economic fallout can be severe, as the global cost of internet blackouts reached approximately $7.69 billion in 2024, with India contributing nearly $320 million. Industries like IT, e-commerce, and fintech, which depend heavily on stable internet connectivity, suffer immense losses during these disruptions. The unpredictability caused by frequent shutdowns creates a challenging environment for businesses, making India a less appealing prospect for foreign investors seeking stable and consistent market conditions.