Web woes: The startling$584M economic hit from India's internet blackouts

In 2023, India witnessed a staggering 7,812 hours of internet blackout and 144 hours of social media shutdown, affecting a substantial 59.1 million individuals. This article delves into the economic ramifications of these disruptions, ranking India fifth among the 25 countries globally with the highest number of internet shutdowns.

India's economic loss

The economic toll of India's internet shutdowns in 2023 amounted to a staggering $585.4 million, as revealed by a comprehensive report from the UK-based review platform Top10VPN ( an independent UK-basd VPN review website, providing VPN analysis and research). This marked a significant increase compared to the previous years, highlighting the escalating impact on the country's economy.

Year-on-year performance

A comparative analysis unveils a concerning trend, with India performing worse than in 2022 and 2021. In 2022, there were 34 major internet disruptions leading to a loss of $184.3 million, while in 2021, the revenue drain stood at $583 million. This declining trajectory poses serious implications for India's economic stability.

Manipur's contribution to the tally

The biggest contributor to India's economic loss in 2023 was the series of internet shutdowns in Manipur. The report estimates a colossal loss of $318 million to the country's economy, shedding light on the severity of the situation in the Northeastern states.

States and union territories affected

The impact of internet shutdowns extended beyond Manipur, encompassing various states and union territories. Haryana, Punjab, Bihar, Maharashtra, Uttar Pradesh, Jammu & Kashmir, among others, experienced disruptions, amplifying the overall economic consequences.

Global perspective: India's share

Globally, the economic cost of internet shutdowns in 2023 amounted to a staggering $9.01 billion, spanning 79,238 hours of government-imposed disruptions. India's contribution to this global loss reached almost 6.5%, emphasising the magnitude of the issue on the world stage.

Methodology behind cost calculation

Top10VPN's report calculated the economic cost based on indicators from the World Bank, ITU (International Telecommunication Union), Eurostat (Directorate-General of the European Commission), and US Census. The evaluation included social media shutdowns, internet blackouts, and severe ISP throttling, providing a comprehensive overview of the financial repercussions.

Nature of internet shutdowns

Internet shutdowns in India are unfortunately not isolated incidents. According to SFLC.in's internet shutdown tracker, India encountered 92 instances in 2023 alone, with another blackout recorded in the early days of 2024.

The authorities often justify internet shutdowns by citing reasons such as curbing rumors and disinformation. However, this has led to an ongoing conflict with digital rights activists, highlighting the ethical and legal dilemmas surrounding these shutdowns.

User dependency on online services

The heavy cost of internet disruptions is underscored by the fact that many users rely on online services for commerce and information. This dependency results in reduced trade and contributes to the overall economic impact. India's internet shutdowns in 2023 revealed a concerning trend, with extensive blackout hours impacting millions and a substantial economic loss.

The repercussions stretched beyond Manipur, affecting various states and territories. The heavy cost of disrupting online services remains a crucial concern for the nation.