Current Affairs for 29 December 2025

What Is a Digital Arrest Scam? Types of Cyber Fraud and Laws in India

Why in News ?

India has recorded a sharp escalation in cyber-enabled financial crimes during 2024–25, particularly a new form of intimidation-based fraud popularly termed as the “digital arrest” scam. Multiple incidents involving losses of several crores, prolonged psychological confinement of victims via video calls, and impersonation of senior law-enforcement or judicial officials have raised serious concerns. Courts and central agencies have taken cognisance of the growing threat, highlighting cyber fraud as not merely an economic crime but a challenge to internal security and public trust.

Background & Context

India’s digital transformation—driven by UPI payments, Aadhaar-based services, online banking, remote working, and smartphone penetration—has dramatically expanded access to services and financial inclusion. However, this rapid digitisation has also created new vulnerabilities.

Cybercrime in India has evolved in three phases:

1. Basic frauds – lottery scams, fake calls, simple cheating
2. Financial-tech frauds – OTP theft, phishing, UPI frauds
3. Psychological & authority-based cybercrime – digital arrest, impersonation, coercive extortion

The “digital arrest” scam represents a qualitative shift, where fear of the state and legal institutions is deliberately exploited using digital tools, fake documents, and prolonged psychological pressure.

What is a “Digital Arrest” Scam ?

Conceptual Explanation

A digital arrest scam refers to a cyber fraud technique where criminals impersonate:

• Police officials
• Investigative agencies (CBI, ED, NCB)
• Courts or regulatory authorities

They falsely accuse victims of grave offences such as money laundering, terror financing, drug trafficking, or cybercrime, and claim that immediate arrest is warranted unless the victim complies with instructions.

Crucial Fact: There is no legal provision in India for arrest, detention, interrogation, or trial via phone call or video conferencing initiated by enforcement agencies.

Typical Modus Operandi

1. Initial Contact
   • Phone call or WhatsApp call from spoofed numbers
   • Caller claims association with police, court registry, or investigative agency
2. Authority Projection
   • Use of uniforms, official language, forged ID cards
   • Fake FIRs, warrants, court orders shared digitally
3. Fear Creation
   • Allegations of serious crimes
   • Threats of arrest, account freeze, passport cancellation, or media exposure
4. Psychological Isolation
   • Victim ordered to remain on continuous video call
   • Instructions not to inform family, lawyers, or friends
5. Financial Extortion
   • Demand for “verification amount”, “security deposit”, or “fine”
   • Money transferred through UPI, bank transfer, mule accounts

Types of Cyber Frauds in India 

1. Digital Arrest / Authority Impersonation Scams

• Exploit fear of law-enforcement and judiciary
• High-value frauds with deep psychological impact

2. Phishing and OTP-Based Frauds

• Fake SMS, emails, or websites mimicking banks and apps
• OTP and credential theft leading to instant fund drain

3. Identity Theft & Profile Impersonation

• Fake social media or messaging profiles
• Used for fraud, blackmail, or reputational damage

4. Fake Job & Recruitment Scams

• Promises of government/private jobs
• Victims pay “registration”, “medical”, or “training” fees

5. Investment & Crypto Scams

• Fake trading platforms and Ponzi schemes
• Promise guaranteed or unusually high returns

6. Customer-Care & Technical Support Scams

• Fake helpline numbers
• Remote access apps used to control devices

7. Ransomware & Malware Attacks

• Data encryption or device locking
• Demand for ransom to restore access

Recent Trends and Key Concerns

• Victims include senior citizens, professionals, students, government employees
• Financial losses often exceed ₹10–50 lakh per case
• Funds are routed via:
  • Mule accounts
  • Shell accounts
  • Layered digital wallets
• Many networks operate cross-border
• Significant under-reporting due to fear, shame, or lack of awareness

Legal Framework Governing Cyber Fraud in India

Key Laws Applicable

• Information Technology Act, 2000
  • Identity theft
  • Cheating by personation
  • Cyber fraud offences
• Bharatiya Nyaya Sanhita / IPC
  • Cheating
  • Forgery
  • Criminal intimidation
  • Criminal conspiracy
• Digital Personal Data Protection Act, 2023
  • Misuse and unlawful processing of personal data
  • Banking & Payment Regulations
• KYC norms
  • Transaction monitoring
  • Reporting of suspicious activities

Institutional & Administrative Measures

• Indian Cyber Crime Coordination Centre (I4C) – national coordination and response
• National Cyber Crime Reporting Portal – online complaint registration
• CERT-In – advisories and incident response
• Judicial Oversight – courts monitoring organised cyber fraud trends
• Telecom Measures – SIM verification, number blocking, spoofing detection

Personal Preventive Measures 

Awareness-Based Measures

• Understand that no arrest happens digitally
• Treat urgent threats as red flags

Financial Safety Measures

• Never share OTPs, PINs, passwords
• Avoid scanning unknown QR codes
• Enable transaction alerts

Digital Hygiene

• Use strong passwords and two-factor authentication
• Update apps and operating systems regularly
• Avoid installing unknown apps or remote-access tools

Behavioural Measures

• Pause and verify before acting under pressure
• Discuss suspicious calls with trusted persons
• Report immediately to banks and cyber authorities

Challenges in Tackling Digital Arrest Scams

Psychological Complexity

• Fear-based manipulation reduces rational thinking

Technological Sophistication

• Spoofed calls, fake documents, deepfake visuals

Jurisdictional Constraints

• Cross-border operations hinder prosecution

Capacity Gaps

• Limited cyber expertise at local policing levels

Way Forward

• Nationwide cyber literacy and legal awareness campaigns
• Faster coordination between banks, telecom operators, and police
• Real-time account and SIM freezing mechanisms
• Capacity building of police and judiciary in cyber forensics
• Integration of cyber awareness into school and college curricula

PM-YUVA 3.0: Nurturing India’s Next-Gen Writers

Why in News ?

The results of the Prime Minister’s Scheme for Mentoring Young Authors (PM-YUVA 3.0) have been declared, with 43 young authors selected through an All-India contest. The scheme aims to mentor talented youth writers and promote original writing on India’s civilisational, cultural, and contemporary themes.

Background & Context

India has a rich literary and intellectual tradition, but young writers often face challenges such as lack of mentorship, limited publishing opportunities, and inadequate exposure to professional literary ecosystems. Recognising the need to nurture young creative talent, the Government of India launched the PM-YUVA (Young, Upcoming and Versatile Authors) Scheme as part of a broader effort to promote reading, writing, and knowledge creation.

PM-YUVA aligns with the objectives of the National Education Policy (NEP) 2020, which emphasises creativity, critical thinking, Indian Knowledge Systems, and multidisciplinary learning. The third edition, PM-YUVA 3.0, continues this vision by providing structured mentorship and national-level recognition to young authors.

What is the PM-YUVA 3.0 Scheme ?

Overview

The Prime Minister’s Scheme for Mentoring Young Authors (PM-YUVA 3.0) is a government initiative aimed at nurturing writers below 30 years of age by offering mentorship, training, and publishing opportunities.

Objectives

• Develop a new generation of Indian writers
• Encourage original writing on India’s past, present, and future
• Promote Indian perspectives in literature and knowledge creation
• Strengthen India’s cultural and intellectual soft power

Key Themes under PM-YUVA 3.0

Selected young authors are encouraged to write on the following themes:

1. Contribution of Indian Diaspora in Nation Building
2. Indian Knowledge System (IKS)
3. Makers of Modern India (1950–2025)

These themes aim to blend historical understanding with contemporary narratives and future-oriented thinking.

Implementing Agency & Institutional Framework

• Implementing Agency: National Book Trust (NBT), India
• Administrative Ministry: Ministry of Education
• NBT ensures phase-wise execution of the scheme through structured and well-defined mentorship stages.

Selection Process

• Applications are invited through the MyGov India portal
• Candidates undergo a multi-stage selection process, including evaluation of writing samples
• Eligibility Condition:
  • Applicants who were selected under PM-YUVA 1.0 or PM-YUVA 2.0 are not eligible for PM-YUVA 3.0
• Final selection is done on a competitive, merit-based basis at the national level

Mentorship & Support Structure

Duration

• Six-month mentorship programme

Components

• Regular mentoring sessions with established authors and subject experts
• Workshops on creative writing, research, editing, and publishing
• Exposure to India’s literary and publishing ecosystem

Financial & Professional Support

• Consolidated scholarship at the end of the mentorship
• Final output:
  • A book or series of books authored by the participants
  • Published by National Book Trust (NBT), India
• Royalty:
  • Authors receive 10% royalty on successful publication

Publication & Outreach

• Books published under PM-YUVA may be translated into other Indian languages, promoting linguistic diversity
• Selected authors get opportunities to:
  • Present their work at literary festivals
  • Participate in national and international forums
• Enhances visibility of young Indian writers at global platforms

Significance of PM-YUVA 3.0

Cultural Significance

• Promotes Indian narratives rooted in indigenous perspectives
• Revives interest in Indian Knowledge Systems and modern history

Educational Impact

• Encourages research-oriented writing among youth
• Supports NEP 2020 goals of creativity and critical thinking

Soft Power & Nation Branding

• Positions India as a global knowledge and literary hub
• Amplifies voices of young Indians in global discourse

Challenges and Way Ahead

Limited Reach

• Awareness of the scheme remains limited among rural and vernacular writers
• Way Forward: Expand outreach through regional institutions and universities

Language Diversity

• Dominance of English-language submissions
• Way Forward: Encourage submissions in Indian languages and regional scripts

Sustainability

• Limited number of beneficiaries per edition
• Way Forward: Scale up mentorship capacity and partnerships with private publishers

Evolving Oil Import Strategy Of India

Why in News ?

India’s crude oil sourcing pattern has undergone a significant transformation over the past decade. Once heavily dependent on West Asian suppliers, India has increasingly diversified its oil import basket—most notably with Russia emerging as the largest supplier since 2022. This shift reflects India’s pragmatic energy diplomacy, balancing geopolitical risks, sanctions regimes, and economic imperatives such as cost control and inflation management.

Background & Context

Energy security has remained a central pillar of India’s economic and strategic planning. As the world’s third-largest oil consumer and importer, India depends on imports for over 85% of its crude oil needs. Historically, this dependence exposed India to geopolitical instability in West Asia, price volatility, and supply disruptions.

Over time, India recalibrated its oil strategy from supplier concentration to diversified sourcing, prioritising flexibility, affordability, and resilience over rigid geopolitical alignments. This transition has accelerated amid global disruptions—sanctions on Iran, the Russia–Ukraine war, and shifting energy geopolitics.

West Asia: The Traditional Backbone of India’s Oil Imports

• Prior to 2005, over 70% of India’s crude imports originated from West Asia.
• Key suppliers included Saudi Arabia, Iraq, Iran, Kuwait, UAE, Oman, and Qatar.
• Even in 2011–12, more than 60% of imports came from seven West Asian countries:
  • Saudi Arabia (~17%)
  • Iran (11.3%)
  • Iraq (10.5%)
  • UAE (9%)
  • Kuwait (7%)
  • Oman (3.4%)
  • Qatar (3.3%)

African suppliers (Nigeria and Angola) formed a secondary source, contributing roughly one-fifth of total imports.

Iran Sanctions and the Reshaping of India’s Crude Basket

Sanctions Shock

• UNSC sanctions (2010) and US unilateral sanctions (2011) on Iran severely constrained India–Iran oil trade.
• Restrictions on Iran’s Central Bank and threats to penalise foreign banks increased transaction risks.

Impact on Imports

• Iran’s share declined steadily:
  • 7.1% (2012–13)
  • 5.8% (2013–14)
  • 5.7% (2014–15)
  • 6.2% (2015–16)

This phase underscored how geopolitics can override economic logic, compelling India to rework its energy sourcing strategy.

Iran Sanctions, Temporary Revival & India’s Diversification Push

• Following the 2016 nuclear agreement, sanctions relief allowed a brief revival.
• Iran’s share rebounded to 12.7% in 2016–17.

Reversal after 2017

• Reimposition of US sanctions under the Trump administration led to:
  • Sharp decline post-2017
  • 91.8% cut in Iranian imports by 2019–20

Structural Diversification

India increasingly turned to:

• UAE and Saudi Arabia (Middle East stability)
• United States (shale oil)
• Africa and Latin America

Current import profile:

• Middle East: 40–45%
• Africa: 8–10%
• Americas: 10–12%

Russia Emerges as India’s Largest Crude Supplier

Trigger: Russia–Ukraine Conflict (2022)

• Western sanctions forced Russia to divert crude at discounted prices.
• India adopted a cost-centric, non-aligned approach.

Surge in Russian Oil Share

• <2% in 2021–22
• 21.6% in 2022–23
• 35.9% in 2023–24
• 35.8% in 2024–25

Today, around one-third of India’s crude imports come from Russia.

Economic Logic

• Russian Urals crude price:
  • $79.41/barrel (April 2022)
  • $66.49/barrel (March 2025)
• Indian refineries were technically compatible, ensuring smooth transition.

Why Russian Oil Is Hard to Replace ?

• Higher freight costs from alternative suppliers
• Loss of discounts
• Pressure on refinery margins
• Potential rise in fuel prices and inflation
• Risk of fiscal and political backlash

Challenges and Way Ahead

Geopolitical Vulnerability

• Overdependence on any single supplier poses long-term risks.
• Way Forward: Maintain a diversified, multi-regional import strategy.

Energy Transition Pressures

• Fossil fuel dependence conflicts with climate commitments.
• Way Forward: Accelerate renewable energy, green hydrogen, and biofuels.

Price Volatility & Fiscal Stress

• Oil price shocks affect inflation and current account deficit.
• Way Forward: Strengthen strategic petroleum reserves and hedging mechanisms.

Saving the Great Indian Bustard: Supreme Court’s Conservation–Energy Balance

Why in News ?

The Supreme Court of India recently delivered a landmark judgment to strengthen conservation of the Great Indian Bustard (GIB) by addressing bird fatalities caused by collisions with overhead power lines linked to renewable energy projects. Acting on expert committee recommendations, the Court demarcated priority conservation areas and laid down mechanisms to manage or reroute power lines in these zones.

Background & Context

The Great Indian Bustard, once widespread across India’s grasslands, is now among the most critically endangered bird species in the world, with an estimated population of fewer than 150 individuals. Rajasthan and Gujarat host its last viable habitats.

Rapid expansion of renewable energy infrastructure—particularly wind and solar projects—has led to a dense network of overhead transmission lines across these landscapes. Due to poor frontal vision and a heavy body, GIBs are unable to detect thin overhead wires, leading to frequent fatal collisions.

The case highlights a broader policy dilemma: balancing India’s climate commitments and clean energy transition with the urgent need to prevent irreversible biodiversity loss.

What the Supreme Court Was Examining

• A retired bureaucrat and environmentalist approached the Supreme Court seeking urgent protection for the GIB.
• The petition highlighted rising mortality due to collisions with overhead power lines in Rajasthan and Gujarat.
• Scientific evidence showed that GIBs are especially vulnerable due to:
  • Poor frontal vision
  • Low manoeuvrability during flight

Key Supreme Court Directions (2021–2024)

2021 Interim Directions

• Ban on new overhead power lines across ~99,000 sq km of GIB habitat.
• Assessment of feasibility of undergrounding high-voltage transmission lines.
• Mandatory installation of bird flight diverters on existing lines.

March 2024 Modification

• Withdrawal of the blanket ban on overhead power lines.
• Modification followed concerns raised by:
  • Ministry of Power
  • Ministry of New and Renewable Energy (MNRE)
  • Ministry of Environment, Forest and Climate Change (MoEFCC)
• Authorities flagged feasibility constraints, high costs, and adverse impacts on renewable energy expansion.

Balancing Conservation and Clean Energy

• The Court acknowledged the need to balance:
  • India’s renewable energy and climate commitments, and
  • Protection of a critically endangered species
• Held that undergrounding alone is insufficient as a universal solution.
• Constituted an expert committee comprising wildlife scientists and power-sector specialists.

Basis of the Final Judgment

• The Court’s final ruling was guided by expert committee recommendations.
• Adopted a targeted, zone-based approach rather than blanket prohibitions.
• Sought to ensure biodiversity protection while accommodating India’s clean energy goals.

Measures Ordered by the Supreme Court

The Court approved a package of measures across three core pillars:

1. Redrawing priority conservation zones
2. Voltage-based mitigation of power lines
3. Creation of dedicated powerline corridors

Revised Priority Conservation Areas

Rajasthan

• Priority areas expanded from 13,163 sq km to 14,013 sq km.
• Identified by the Rajasthan Forest Department and the Wildlife Institute of India (WII).

Gujarat

• Priority areas increased from 500 sq km to 740 sq km.

Key Critical Sites Identified

• Desert National Park
• Salkha–Kuchri
• Sanu–Mokla–Parewar
• Pokhran Field Firing Range (PFFR) and buffer areas
• Dholiya
• Khetolai
• Chacha

Contestation: Petitioners opposed the exclusion of 657 sq km of eastern Rasla–Degray Oran, citing its importance as a wintering and migratory corridor.

Dedicated Powerline Corridors

Rajasthan

• New corridors up to 5 km wide, located at least 5 km south of Desert National Park.
• Designed to carry rerouted overhead lines away from core habitats.

Gujarat

• Dedicated corridors of 1–2 km width in coastal Kutch to evacuate power from wind and solar projects.

Route Optimisation Mandate

• Where multiple renewable pooling stations feed into a single grid station, routes must be converged into a common corridor wherever feasible.

Project Restrictions in Priority Areas

• No new overhead power lines within priority areas (except ≤11 kV lines).
• No new wind turbines permitted.
• No new solar parks or plants above 2 MW, and no expansion of existing solar parks.

Voltage-Based Mitigation: Undergrounding & Timelines

Rajasthan

• Immediate undergrounding of 80 km of 33 kV lines (out of 104 km identified).
• All undergrounding or rerouting to commence immediately and be completed by 2028.

Gujarat

• Immediate undergrounding of:
  • 79.2 km of 33 kV lines
  • 64.9 km of 66 kV lines
• Additional 250 km of critical lines (identified by WII) to be buried within two years.

Bird Flight Diverters: Evidence-Based Approach

• The Court refrained from issuing blanket directions on bird diverters.
• Directed the expert committee to:
  • Assess their effectiveness scientifically
  • Submit findings to the Union Government for future policy decisions

Conservation Measures Directed by the Supreme Court

The Court endorsed a mix of general and State-specific conservation measures, supplementing the ongoing Project GIB.

Measures for Rajasthan

Grassland Restoration

• Priority on restoration, conservation, and consolidation of grassland ecosystems—the GIB’s primary habitat.

In-situ Habitat Management

• Securing breeding and foraging enclosures
• Predator management, including control of:
  • Free-ranging dogs
  • Reptiles that prey on eggs
• Food and water resource management
• Community engagement to reduce human–wildlife conflict

Measures for Gujarat

‘Jump-Start’ Breeding in the Wild

• Adoption of a ‘jump-start’ breeding technique:
  • Fertile eggs transferred from Rajasthan
  • Infertile egg swapped to allow natural incubation
• Enables females to raise chicks in the wild.

Technology-Enabled Monitoring

• GPS tagging of birds to:
  • Track movement patterns
  • Support breeding and post-release monitoring

The Road Ahead: Coexistence of Energy and Ecology

The Supreme Court’s judgment represents a nuanced attempt to reconcile environmental protection with developmental imperatives. By adopting science-based, location-specific safeguards, the ruling sets a precedent for integrating biodiversity conservation into India’s renewable energy transition.

India’s RCEP-Plus Strategy: Market Access without China Risk

Why in News ?

More than six years after opting out of the Regional Comprehensive Economic Partnership (RCEP) in 2019, India has effectively secured most economic benefits of the grouping without formally joining it. The conclusion of the India–New Zealand Free Trade Agreement (FTA) marks a key milestone, as India now has FTAs with all RCEP members except China, reflecting a calibrated strategy balancing market access, strategic autonomy, and economic security.

Background & Context

Mega trade agreements like RCEP aim to deepen regional integration through tariff liberalisation and harmonised rules. However, for developing economies such as India, such arrangements can also constrain domestic policy space and expose vulnerable sectors to import surges.

India’s decision to stay out of RCEP in 2019 marked a departure from blanket trade liberalisation towards a selective, bilateral, and risk-calibrated trade approach. Since then, India has progressively negotiated FTAs tailored to its economic sensitivities while avoiding systemic exposure to Chinese manufacturing dominance.

What is RCEP ?

• The world’s largest trading bloc, comprising:
  • 10 ASEAN countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
  • Plus Australia, China, Japan, South Korea, and New Zealand
• Accounts for nearly 30% of global GDP and population
• Aims at:
  • Tariff liberalisation
  • Supply chain integration
  • Trade facilitation and common rules of origin

Why India Opted Out of RCEP (2019)

Key Concerns

• China Factor
  • Risk of near duty-free entry of Chinese goods into Indian markets
  • Potential de-industrialisation due to China’s manufacturing dominance
• Manufacturing Asymmetry
  • Indian MSMEs and manufacturing lacked competitiveness against East Asian supply chains
• Trade Deficits
  • Fear of widening deficits, especially with China and ASEAN countries
• Inadequate Safeguards
  • Weak protection for sensitive sectors such as agriculture and MSMEs
  • Limited flexibility in tariff liberalisation timelines

Official Position

The Prime Minister stated that RCEP, in its existing form, failed to reflect agreed guiding principles and did not address India’s “outstanding issues and concerns”.

The ‘RCEP Minus China’ Strategy

Core Idea

• Secure bilateral FTAs with 14 of the 15 RCEP members
• Exclude China from a comprehensive FTA
• Retain tariff sovereignty and domestic policy space

Strategic Assessment

• Described by experts as “smart risk management”
• Delivers market access without systemic vulnerability
• Considered superior to:
  • Joining RCEP, or
  • Signing a direct India–China FTA

India–China Trade Framework

• Asia Pacific Trade Agreement (APTA)
  • A preferential trade agreement with limited tariff concessions on select goods
• Significance
  • Prevents blanket tariff elimination
  • Limits exposure to large-scale Chinese imports
  • Preserves defensive trade flexibility

Why RCEP Would Have Been Riskier for India

• Integrated structure diluted country-specific safeguards
• Limited control over rules of origin, enabling indirect entry of Chinese goods via ASEAN
• Absence of phased liberalisation aligned to India’s sectoral sensitivities
• Reduced ability to deploy corrective trade remedies

India’s FTAs with RCEP Members

Pre-2014 Agreements

• ASEAN–India Trade in Goods Agreement (AITIGA) – 2010
• India–South Korea CEPA – 2010
• India–Japan CEPA – 2011

Issue: AITIGA contributed to a sharp rise in India’s trade deficit with ASEAN.

Status: Renegotiation of AITIGA underway, though progress remains limited.

Post-2014 Developments

• India–Australia Economic Cooperation and Trade Agreement (ECTA) – 2022
  • Early-harvest deal
  • Talks ongoing to expand scope
• India–New Zealand FTA – Concluded in December 2025
  • Completes India’s bilateral trade coverage of RCEP members (excluding China)

Key Highlights of India–New Zealand FTA

• Zero-duty market access for Indian exports
• Investment commitment of USD 20 billion
• Strengthens India’s footprint in the Pacific and Indo-Pacific trade architecture
• Reinforces India’s selective integration into regional supply chains

Challenges and Way Ahead

Persistent Trade Deficits

• Ongoing deficits with ASEAN countries
• Slow progress in renegotiating legacy FTAs like AITIGA

Way Forward:

Rebalance FTAs with stronger safeguards and reciprocity-based market access.

Domestic Competitiveness

• MSMEs and manufacturing require productivity upgrades

Align trade strategy with Make in India and Atmanirbhar Bharat initiatives.

Geopolitical Pressures

• Growing push towards bloc-based trade alignments

Adopt strategic plurilateralism—engage selectively without compromising autonomy.

Global Supply Chain Realignments

• Shift away from China-centric supply chains

Leverage FTAs to enhance supply chain resilience and diversification.

India’s Cyber Threat Surge

Why in News ?

According to Check Point Software Technologies’ “State of Cyber Security in India 2025” report, Indian organisations faced an average of 2,011 cyberattacks per week in 2025, significantly higher than the global average. The report highlights cloud misconfigurations, infostealer malware, ransomware, and AI-enabled frauds as key drivers behind India’s rapidly escalating cyber threat landscape.

Background & Context

India’s rapid digital transformation—driven by UPI-based payments, cloud adoption, e-governance platforms, and data-driven public services—has significantly expanded its digital attack surface. While this transformation has enhanced efficiency and inclusion, it has also made India a high-value target for cybercriminals.

Over the last three years, cyber incidents in India have more than doubled, reflecting a mismatch between the pace of digitisation and the maturity of cyber security practices. The 2025 report underscores that cyber risks are no longer confined to financial theft alone but now threaten national security, data sovereignty, and public trust in digital systems.

Scale of Cyberattacks in India (2025)

• Indian organisations faced 2,011 cyberattacks per week on average.
• India ranked among the most targeted countries globally.
• Education sector emerged as the most targeted worldwide:
  • Institutions faced between 4,248 and 9,817 attacks per week.
• Other highly targeted sectors:
  • Telecommunications
  • Healthcare
  • Financial services
  • Government and public sector bodies

This pattern reflects attackers’ focus on data-rich, service-critical, and digitally dependent sectors.

Rising Trend in Cyber Incidents and Financial Losses

• Cyber incidents increased from:
  • ~1.03 million (2022)
  • to ~2.27 million (2024)
• Early 2025 indicators suggest continued escalation.
• Financial cyber fraud losses reported on the National Cyber Crime Reporting Portal reached:
  • ₹36,450 crore (as of February 2025)

These losses are closely linked to the expansion of digital payments and remote digital interactions.

Major Types of Cyberattacks and Digital Frauds in India 

1. Phishing and Social Engineering Attacks

• Fake banking and UPI links
• Fraudulent SMS, emails, and messaging app links
• Increasing use of AI-generated messages to mimic trusted institutions.
• Primary driver of:
  • UPI fraud
  • Account takeover
  • Credential theft

2. UPI and Digital Payment Frauds

• Exploit real-time payment systems.
• Common methods:
  • Fake “collect requests”
  • QR code manipulation
  • Customer care impersonation
• Major contributor to financial losses reported in 2025.

3. Cloud Misconfigurations and Data Breaches

• Unsecured cloud storage buckets
• Over-permissive access controls
• Poor identity and access management
• Reported incident:
  • Exposure of 500 GB of sensitive personal and biometric data, including records of law enforcement and military personnel.
• Less than 9% of sensitive cloud data is encrypted, increasing breach impact.

4. Infostealer Malware Attacks

• Designed to steal:
  • Login credentials
  • Banking data
  • Browser cookies and crypto wallets
• Major malware families active in India (2025):
• Lumma Stealer – compromised 44,197 Windows devices (March–May 2025)
  • RisePro
  • Vidar
  • StealC
  • RedLine
• Enterprise-focused malware:
  • AgentTesla (22% year-on-year rise)
  • FormBook
• Mostly delivered through targeted phishing campaigns.

5. Ransomware Attacks

• Affected 7–10% of Indian organisations.
• Education sector saw disproportionate impact.
• Evolving tactics include:
  • Data exfiltration before encryption
  • Double and triple extortion
  • Use of zero-day vulnerabilities
  • Abuse of legitimate system tools to evade detection

6. SIM Swap and Identity Theft Frauds

• Reset banking and UPI credentials
• Bypass OTP-based authentication
• Often combined with phishing and social engineering.

7. Deepfake and AI-Enabled Scams

• Deepfake videos and voice calls impersonating officials or family members
• AI-generated financial advisories and job offers
• Exploits trust and emotional manipulation.

Detection and Response Gaps

• Only a small fraction of organisations can:
  • Detect breaches within the first hour
  • Contain or remediate attacks quickly
• Delayed response significantly amplifies:
  • Financial losses
  • Data exposure
  • Operational disruption

Implications for India’s Digital Ecosystem

• Threatens trust in Digital Public Infrastructure (DPI) such as UPI and e-governance platforms.
• Raises concerns about:
  • Data protection
  • National security
  • Critical infrastructure resilience
• Highlights the need for security-by-design, not post-facto fixes.

Personal Measures 

1. Safe Digital Payment Practices

• Never click on unknown or unsolicited UPI collect requests.
• Avoid scanning QR codes sent via messages or social media.
• Verify merchant identities before making payments.
• Set daily transaction limits on UPI and net banking.

2. Protection Against Phishing & Social Engineering

• Do not click links received via SMS, email, or messaging apps claiming urgency.
• Verify communications from banks, government agencies, or service providers through official channels.
• Be cautious of AI-generated voice or video calls impersonating officials or relatives.

3. Device and Account Security

• Enable two-factor authentication (2FA) on all critical accounts.
• Use strong, unique passwords and a password manager.
• Regularly update operating systems, browsers, and apps.
• Install apps only from trusted app stores.

4. Cloud and Data Privacy Awareness

• Avoid uploading sensitive personal documents to unsecured cloud platforms.
• Review privacy permissions granted to apps.
• Regularly audit email and cloud account login activity.

5. SIM and Identity Protection

• Avoid sharing OTPs under any circumstances.
• Immediately report network issues that may indicate SIM swap fraud.
• Link Aadhaar and PAN only through official portals.

6. Reporting Cybercrime Promptly

• Report incidents immediately on the National Cyber Crime Reporting Portal (cybercrime.gov.in).
• Early reporting increases chances of fund recovery in UPI and banking frauds.

Key Cyber Laws in India

1. Information Technology Act, 2000 (IT Act)

• India’s primary cyber law.
• Provides legal recognition to electronic transactions.
• Criminalises:
  • Hacking
  • Identity theft
  • Data theft
  • Cyber terrorism (Section 66F)

2. IT (Amendment) Act, 2008

• Expanded scope to include:
  • Phishing and online fraud
  • Violation of privacy
  • Intermediary liability
• Introduced stricter penalties and definitions of cyber offences.

3. Digital Personal Data Protection Act, 2023

• Governs collection, processing, and storage of personal data.
• Mandates:
  • User consent
  • Data minimisation
  • Breach notification
• Penalises data fiduciaries for negligent data protection practices.

Institutional Mechanisms for Cyber Security

1. CERT-In (Indian Computer Emergency Response Team)

• Nodal agency for cyber incident response.
• Issues:
  • Cyber security advisories
  • Vulnerability alerts
• Mandates breach reporting within prescribed timelines.

2. National Cyber Crime Reporting Portal

• Centralised platform for reporting:
  • Financial frauds
  • Identity theft
  • Online abuse
• Integrated with:
  • Banks
  • Law enforcement agencies
  • Indian Cyber Crime Coordination Centre (I4C)

3. Indian Cyber Crime Coordination Centre (I4C)

• Established under the Ministry of Home Affairs.
• Coordinates cybercrime response across States and UTs.
• Supports:
  • Capacity building
  • Training of cyber police
  • Real-time fraud monitoring

Regulatory and Policy Measures

1. RBI and Financial Sector Safeguards

• Mandatory:
  • Multi-factor authentication
  • Transaction alerts
• Zero Liability norms for customers if fraud is reported promptly.
• Guidelines for banks and payment service providers on fraud risk management.

2. Telecom and SIM Security Measures

• KYC norms for SIM issuance.
• Restrictions on bulk SIM activations.
• Measures to curb SIM swap fraud.

3. National Cyber Security Strategy (Proposed)

• Focus areas:
  • Critical infrastructure protection
  • Indigenous cyber security capabilities
  • Skilled cyber workforce
• Aims to integrate public-private cooperation.

Challenges in Legal and Enforcement Framework

• Low conviction rates in cybercrime cases.
• Jurisdictional challenges due to cross-border nature of cyberattacks.
• Limited cyber forensic capacity at the district level.
• Rapid evolution of AI-driven cyber threats outpacing legal reforms.

Digitalization of the Indian Economy

Digitalization has emerged as a key driver of India’s structural economic transformation. The rapid spread of digital technologies is not only enhancing productivity and efficiency but is also playing a decisive role in governance, financial inclusion, and employment generation. It is estimated that by 2030, the digital economy will contribute around 20% of India’s Gross Value Added (GVA).

Current Status and Trends

(a) Overall Contribution of the Digital Economy

• India is regarded as the third most digitized economy in the world.
• In FY 2023, the digital economy contributed 11.74% of GDP.
• By FY 2030, its share is projected to rise to about 20% of GVA, surpassing both agriculture and manufacturing.

(b) Impact on Employment

• In FY 2022–23, about 14.67 million people were employed in the digital economy (2.55% of the total workforce).
• 58.07% of these jobs were created in digitally enabled sectors such as:
  • E-commerce
  • IT and IT-enabled services
  • Logistics
  • Gig economy platforms

(c) Financial Inclusion

• The JAM Trinity (Jan Dhan–Aadhaar–Mobile) has significantly expanded access to formal banking.
• The Financial Inclusion Index of the Reserve Bank of India reached 64.2 in FY 2023–24.
• By May 2025, Direct Benefit Transfers (DBT) exceeded ₹44 lakh crore, reducing leakages and ensuring targeted welfare delivery.

Role of Digital Public Infrastructure (DPI)

(a) India Stack

• Platforms such as Aadhaar, UPI, DigiLocker, and e-KYC have created a low-cost, scalable, and inclusive digital ecosystem.
• DPI has enabled platform-based development, benefiting both governance and private innovation.

(b) UPI Revolution

• UPI has made India the world’s leading real-time digital payments ecosystem.
• In 2024, monthly transactions crossed 1,300 crore, indicating a decisive shift toward a cashless economy.

UPI (Unified Payments Interface)

UPI is a real-time digital payment system in India that allows instant money transfers by linking bank accounts through a mobile app. It was developed by the National Payments Corporation of India (NPCI).

(c) Aadhaar and DBT

• Aadhaar simplified large-scale digital identity verification.
• DBT improved the efficiency and transparency of subsidy and welfare schemes.

Broad Benefits of Digitalization

• Productivity enhancement: MSMEs and start-ups gain access to national and global digital markets.
• Transparent governance: E-governance, faceless services, and real-time monitoring.
• Inclusive growth: Potential to bridge the rural–urban divide.
• Innovation ecosystem: Expansion of fintech, health-tech, and ed-tech sectors.

Key Challenges

(a) Digital Divide

• Significant gaps in internet access, speed, and quality between urban and rural areas.
• Limited fiber and mobile connectivity in remote regions.

(b) Low Digital and Financial Literacy

• Nearly 75% of Indian adults lack basic financial knowledge.
• Over 80% of women are financially illiterate, restricting effective use of digital services.

(c) Cybersecurity and Fraud

• Rising risks of data breaches, cyberattacks, and online fraud.
• Concerns over consumer protection and data privacy.

(d) Technology Infrastructure

• Challenges related to service reliability, frequent upgrades, and weak connectivity.

(e) Regulatory Issues

• Complex and evolving regulation in fintech and cryptocurrencies.
• Need to balance innovation with risk management. 

Way Forward

• Investment in digital infrastructure: Rural broadband, 5G/6G, and satellite internet.
• Digital and financial literacy missions: Focus on women and MSMEs.
• Robust cybersecurity framework: Strong data protection laws and expanded CERT capacity.
• Smart regulation: Sandbox-based, fintech-friendly regulatory approach.
• Globalization of DPI: UPI-linked cross-border payments and promotion of Global Digital Public Goods.

Electronics Sector and Semiconductor Mission in India

India’s electronics manufacturing sector has emerged as a high-growth strategic sector.

• A multi-fold increase in the value of domestic production has enabled India to move beyond being merely an electronics assembly hub toward greater value addition.
• India’s participation has expanded across mobile phones, consumer electronics, IT hardware, and automotive electronics.

Today, India is no longer just an import-dependent consumer; rather—

• It is emerging as a manufacturing and export hub within the Global Value Chain (GVC) for electronics.
• Under the China+1 strategy, India has positioned itself as an alternative destination for multinational companies.

Central Importance of Semiconductors

Semiconductors are the backbone of the modern digital economy:

• Consumer sector: Smartphones, computers, televisions, smart home devices
• Digital infrastructure: Data centers, cloud computing, 5G/6G networks
• Strategic sectors: Automobiles, electric vehicles (EVs), defence equipment, space and satellite systems

Without semiconductors, the vision of Digital India, Industry 4.0, and Atmanirbhar Bharat (Self-Reliant India) cannot be realized.

Importance of the Indigenous Semiconductor Industry

(a) Economic Sovereignty

• Reduced dependence on imported chips leads to significant savings in foreign exchange.
• Protection from global supply-chain disruptions (such as pandemics or geopolitical tensions).
• Ensures a stable supply of critical inputs for domestic MSMEs and large electronics manufacturers.

This provides India with Strategic Autonomy.

(b) Technological Foundation

• Semiconductors are the core enabling technology of the modern digital society.
• Technologies such as AI, ML, IoT, robotics, automation, big data, and digitalization are built on semiconductors.
• Smartphones, computers, automobile ECUs, industrial machinery, and smart factories all depend on them.

Indigenous semiconductors mean control over technology, not mere consumption.

(c) Cross-Sectoral Impact

Healthcare

• Medical imaging (MRI, CT scans)
• Real-time patient monitoring and telemedicine

Logistics and Transportation

• Smart tracking and GPS-based fleet management
• Energy-efficient shipping and warehouse automation

Defence and Security

• Radar systems and missile guidance
• Secure communication, cyber and electronic warfare

The semiconductor industry strengthens Comprehensive National Power.

(d) Green Energy and Global Standing

• Electric vehicles (EVs), charging infrastructure, and battery management systems
• Advanced vehicle safety systems such as ADAS
• Renewable energy grids, smart meters, and energy-efficiency solutions

Through these, India:

• Moves closer to its Net Zero climate goals
• Establishes itself as a reliable and responsible technology power on the global stage

Major Government Initiatives

(a) PLI – Large-Scale Electronics Manufacturing

Production Linked Incentive (PLI) Scheme

The PLI scheme has been the most significant policy for expanding electronics manufacturing in India. Its objective is not limited to assembly, but to promote value addition and export-oriented production.

Key Features

• Direct financial incentives based on production/sales
• Attraction of multinational companies to set up manufacturing units in India
• Support for domestic companies to become globally competitive

Impact and Achievements

• India has emerged among the leading countries in mobile phone manufacturing
• Significant growth in electronics exports
• Development of a component ecosystem (PCBs, camera modules, chargers, display parts)
• Large-scale job creation, especially for youth and women
• The PLI scheme has helped India move beyond an “assembly hub” towards becoming a “manufacturing + export hub”.

(b) India Semiconductor Mission (ISM)

• Launched: 2021
• Total Outlay: ₹76,000 crore

Objectives

• To develop a comprehensive ecosystem for semiconductor and display manufacturing in India
• To integrate fabs, display units, ATMP/OSAT, design, and R&D
• To provide up to 50% financial support of project cost, reducing the barrier of high capital investment

Strategic Importance

• Protection against situations like global chip shortages
• Secure supply for defence, space, and digital infrastructure
• Positioning India as a reliable partner in the global semiconductor value chain
• ISM forms the foundation of India’s strategic autonomy and technological sovereignty.

Recent Approvals (2024)

(a) India’s First Commercial Semiconductor Fab

• India’s first commercial semiconductor fabrication plant in Gujarat
• Lead: Tata Group
• A historic milestone for India, as the country did not previously have full-scale fab capability

Significance

• Formal entry of India into high-value semiconductor manufacturing
• Domestic supply of chips for automobiles, EVs, power electronics, and industrial applications
• Boost to skill development, research, and advanced engineering

(b) ATMP / OSAT Units

• Approval granted to two additional units

Functions

• Assembly
• Testing
• Marking and Packaging

Significance

• A critical stage of the semiconductor value chain
• Large-scale employment generation in a short time
• Moves India toward end-to-end capability: Chip Design → Fab → Packaging
• This marks India’s transition from being merely a chip consumer to moving toward becoming a full-fledged semiconductor manufacturing nation.

Schemes under the Semicon India Programme

The objective of the Semicon India Programme is to develop an end-to-end semiconductor value chain in India—from design to fabrication, packaging, and display manufacturing. The programme is implemented under the India Semiconductor Mission.

(1) Semiconductor Fab Establishment Scheme

Key Features

• Silicon CMOS (Complementary Metal-Oxide-Semiconductor)–based fabs
• Focus on manufacturing logic chips, memory, power, and automotive semiconductors
• Direct financial support up to 50% of project cost

Significance

• Fab construction is highly capital-intensive; government support reduces investment risk
• Enables India’s entry into high-end manufacturing and advanced engineering
• Ensures domestic chip supply for automobiles, EVs, defence, and industrial electronics
• This scheme is decisive in transforming India from a fab-less design hub into a fab-enabled manufacturing nation.

(2) Display Fab Establishment Scheme

Covered Technologies

• TFT-LCD
• AMOLED (advanced displays for mobiles, TVs, and wearables)

Incentive Structure

• Financial support of up to 50% of project cost

Significance

• Displays are the most expensive and import-dependent component of electronics
• Enhances domestic value addition in mobile phones, TVs, and laptops
• Reduces import bills and improves export competitiveness
• Display fabs move India toward a complete electronics ecosystem, beyond just final assembly.

(3) Compound Semiconductor and ATMP/OSAT Scheme

Covered Areas

• Compound Semiconductors (GaN, SiC, etc.)
• Silicon Photonics
• Sensors and Discrete Semiconductors
• ATMP / OSAT: Assembly, Testing, Marking & Packaging

Incentives

• Financial support of up to 50% of capital expenditure (CapEx)

Strategic Importance

• Compound semiconductors:
  • Essential for EVs, 5G/6G, renewable energy, and power electronics
• ATMP/OSAT:
  • The largest employment-generating stage of the semiconductor value chain
  • Can become operational in a relatively short time
• This scheme strengthens India as a hub for design, packaging, and advanced applications.

(4) Design-Linked Incentive (DLI) Scheme

This scheme focuses on strengthening India’s chip design capabilities, enabling leadership not only in manufacturing but also in intellectual property (IP) creation.

(a) Product Design–Linked Incentive

• Incentive of up to 50% of eligible design expenditure
• Maximum cap: ₹15 crore per application

Benefits

• Encourages startups, MSMEs, and domestic companies
• Promotes indigenous design of ASICs, SoCs, AI, and IoT chips

(b) Production-Linked Incentive

• 6% to 4% of net sales over 5 years
• Maximum cap: ₹30 crore per application

Significance

• Supports the journey from design to market
• Practical implementation of Design in India → Make in India
• The DLI scheme has the potential to establish India as a global chip design hub.

Major Challenges 

• Excessive Dependence on Imports: Despite progress in electronics assembly, India still relies heavily on foreign countries for high-value components—especially semiconductor chips—where China plays a dominant role in supply.
• Capital- and Resource-Intensive Nature: Setting up semiconductor fabrication (fab) units requires massive investment. It also demands critical resources such as ultra-pure water and uninterrupted, high-quality power supply.
• Weak Supporting Ecosystem: Industries that support chip manufacturing—such as specialty gases, chemicals, precision tools, and advanced machinery—are not yet sufficiently developed in India, leaving the overall supply chain fragile.
• Skill and Experience Gap: Although India has a strong base of semiconductor design engineers, there is a significant shortage of practical experience in actual chip manufacturing and highly specialized technical roles.
• Infrastructure Constraints: High investment requirements, lack of ancillary industries, and shortage of skilled human resources together limit the pace of growth of India’s semiconductor manufacturing sector.