The 'Netloss' report by the non-profit Internet Society revealed shutdowns caused a USD 118 million foreign investment loss and triggered 21,000 job cuts.
A report published on Thursday highlighted that law enforcement agencies implementing internet shutdowns, such as the one in Manipur and Punjab, inflicted a significant cost of USD 1.9 billion on the Indian economy during the first half of 2023.
According to the 'Netloss' report from the global non-profit organization Internet Society, the previous shutdowns resulted in substantial consequences. Notably, they caused a loss of nearly USD 118 million in foreign investment and triggered the unfortunate loss of over 21,000 jobs.
The non-profit organization assessed the economic consequences of the shutdown, considering various factors beyond the immediate output loss. These factors encompassed changes in the unemployment rate, the impact on Foreign Direct Investment (FDI), the potential risks of future shutdowns, and the working-age population, among others.
"Governments often mistakenly believe that internet shutdowns will quell unrest, stop the spread of misinformation, or reduce harm from cybersecurity threats. But shutdowns are extremely disruptive to economic activity," the report said.
The report stated that India's frequent implementation of shutdowns to maintain public order has resulted in a shutdown risk of 16 per cent, which is one of the highest in the world as of 2023.
According to the report, shutdowns bring about a cessation of e-commerce activities, result in losses in time-sensitive transactions, contribute to higher unemployment rates, disrupt communication between businesses and customers, and pose financial and reputational risks for companies.
The non-profit organization, established in 1992, explicitly expressed its opposition to shutdowns and appealed to governments to abstain from their implementation. The organization emphasised the detrimental effects of shutdowns on a nation'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," Internet Society president and chief executive Andrew Sullivan said.
