India Cybersecurity Market
The cybersecurity market in India is expected to grow from $1.97 billion in 2019 to $3.05 billion by 2022, at a compound annual growth rate (CAGR) of 15.3%, according to a joint study by PwC India and DSCI. The study also stated that banking, financial services and insurance (BFSI), IT, and government are the top three sectors with the largest market share in cyber security expenditure in the country. This pre-COVID assessment may actually underestimate the growth of the cybersecurity market, if the digital economy booms in the post-COVID-19 era.
Demand for cyber security solutions is being driven by India’s dynamic digital economy. Prime Minister Modi has made expanding the digital economy a priority under his Digital India initiative. Highlights of growth in India’s digital economy include:
• India’s IT-BPM (Business Process Management) sector was over $180 billion in 2019, growing at over 8% per year.
• Digital payments transactions are expected to reach $135 billion by 2023, up from $64.8 billion in 2019, growing at a CAGR of 20%.
• The e-Commerce market is expected to surpass $100 billion by 2022, with online financial services the fastest growing segment.
• India’s mobile telecom sector has driven adoption of the internet (96% is wireless – 606 million subscribers) and telephone service (98% is wireless – 1.17 billion subscribers).
• The draft Personal Data Protection Bill of 2018, with a revised draft was tabled in Parliament in December 2019. This Personal Data Protection Bill 2019 is currently being analyzed by a joint parliamentary committee, which had consulted stakeholders and reviewed their comments. After consultation with Ministry of Law and Justice, the final bill may come up soon. India is expected to establish a new Data Protection Authority as well as privacy and data protection regulations and guidelines in the next two years.
• Compliance with the Aadhaar Act and the Digital Information Security and Healthcare Act (DISHA) of 2018.
The Indian government has made cyber security a national policy priority, creating task forces and engaging with the United States government (USG) to discuss cooperation, sharing information, and improving their cyber defense capability. Bilateral cooperation between India and the United States in the cyber security field is on a positive trajectory. The United States and India have held several official government to government bilateral joint Cyber Dialogues, with the most recent in October 2019. The Cyber Dialogue is a forum for implementing the Framework for the India–U.S. Cyber relationship, including exchanging and discussing international cyber policies, comparing national cyber strategies, enhancing efforts to combat cybercrime, and fostering capacity and R&D, thus promoting building cybersecurity and the digital economy.
According to Ajay Sawhney, Secretary, Ministry of Electronics and Information Technology (MeitY), the Indian government has collaborated with Data Security Council of India (DSCI) to establish a National Center of Excellence that will accelerate innovation in the Indian cybersecurity market.
As India recovers from and adjusts to a post-COVID era, the government and companies in India are expected to focus even more on digitization and IT across all sectors.
We are organizing a Cybersecurity Trade Mission to India to help U.S. companies tap into opportunities in India.
For questions contact the U.S. Commercial Service India at:
Erick Kish, Commercial Attaché and Digital Trade Officer (Erick.Kish@trade.gov)
Navin Vazirani, Commercial Specialist (navin.vazirani@trade.gov).
Sudhir Kesharwani, Commercial Specialist and ICT Team Leader (sudhir.kesharwani@trade.gov)