Delhi High Court Directs Centre to Nominate Members for Deepfake Committee

Introduction 

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The digital landscape of the nation has reached a critical point in its evolution. The rapid adoption of technologies such as cloud computing, mobile payment systems, artificial intelligence, and smart infrastructure has led to a high degree of integration between digital systems and governance, commercial activity, and everyday life. As dependence on these systems continues to grow, a wide range of cyber threats has emerged that are complex, multi-layered, and closely interconnected. By 2026, cyber security threats directed at India are expected to include an increasing number of targeted, well-organised, and strategic cyber attacks. These attacks are likely to focus on exploiting the trust placed in technology, institutions, automation, and the fast pace of technological change.

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1. Social Engineering 2.0: Hyper-Personalised AI Phishing & Mobile Banking Malware

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Cybercriminals have moved from generalised methods to hyper-targeted attacks through AI-based psychological manipulation. In addition to social media profiles, data breaches, and digital/tracking footprints, the latest types of cybercrimes expected in 2026 will involve AI-based analysis of this information to create and increase the use of hyper-targeted phishing emails.

Phishing emails are capable of impersonating banks, employers, and even family members, with all the same regionally or culturally relevant tone, language, and context as would be done if these persons were sending the emails in person.

With malicious applications disguised as legitimate service apps, cybercriminals have the ability to intercept and capture One-Time Passwords (OTPs), hijack user sessions, and steal money from user accounts in a matter of minutes.

These types of attempts or attacks are successful not only because of their technical sophistication, but because they take advantage of human trust at scale, giving them an almost limitless reach into the financial systems of people around the world through their computers and mobile devices.

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2. Cloud and Supply Chain Vulnerabilities

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As Indian organisations increasingly migrate to cloud infrastructure, cloud misconfigurations are emerging as a major cybersecurity risk. Weak identity controls, exposed storage, and improper access management can allow attackers to bypass traditional network defences. Alongside this, supply chain attacks are expected to intensify in 2026.

In supply chain attacks, cybercriminals compromise a trusted software vendor or service provider to infiltrate multiple downstream organisations. Even entities with strong internal security can be affected through third-party dependencies. For India’s startup ecosystem, government digital platforms, and IT service providers, this presents a systemic risk. Strengthening vendor risk management and visibility across digital supply chains will be essential.

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3. Threats to IoT and Critical Infrastructure

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By implementing smart cities, digital utilities, and connected public services, IoT has opened itself up to increased levels of operational technology (OT) through India’s initiative. However, there is currently a lack of adequate security in the form of strong authentication, encryption, and update methods available on many IoT devices. By the year 2026, attackers are going to be able to exploit these vulnerabilities much more than they already are.

Cyberattacks on critical infrastructure such as energy, transportation, healthcare, and telecom systems have far-reaching consequences that extend well beyond data loss; they directly affect the provision of essential services, can damage public safety, and raise concerns over national security. Effectively securing critical infrastructure needs to involve dedicated security solutions to deal with the specific needs of critical infrastructure, in contrast to conventional IT security.

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4. Hidden File Vectors and Stealth Payload Delivery

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SVG File Abuse in Stealth Attacks

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Cybercriminals are continually searching for ways to bypass security filters, and hidden file vectors are emerging as a preferred tactic. One such method involves the abuse of SVG (Scalable Vector Graphics) files. Although commonly perceived as harmless image files, SVGs can contain embedded scripts capable of executing malicious actions.

By 2026, SVG-based attacks are expected to be used in phishing emails, cloud file sharing, and messaging platforms. Because these files often bypass traditional antivirus and email security systems, they provide an effective stealth delivery mechanism. Indian organisations will need to rethink assumptions about “safe” file formats and strengthen deep content inspection capabilities.

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5. Quantum-Era Cyber Risks and “Harvest Now, Decrypt Later” Attacks

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Although practical quantum computers are still emerging, quantum-era cyber risks are already a present-day concern. Adversaries are believed to be intercepting and storing encrypted data now with the intention of decrypting it in the future once quantum capabilities mature—a strategy known as “harvest now, decrypt later.” This poses serious long-term confidentiality risks.

Recognising this threat, the United States took early action during the Biden administration through National Security Memorandum 10, which directed federal agencies to prepare for the transition to quantum-resistant cryptography. For India, similar foresight is essential, as sensitive government communications, financial data, health records, and intellectual property could otherwise be exposed retrospectively. Preparing for quantum-safe cryptography will therefore become a strategic priority in the coming years.

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6. AI Trust Manipulation and Model Exploitation

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Poisoning the Well – Direct Attacks on AI Models

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As artificial intelligence systems are increasingly used for decision-making—ranging from fraud detection and credit scoring to surveillance and cybersecurity—attackers are shifting focus from systems to models themselves. “Poisoning the well” refers to attacks that manipulate training data, feedback mechanisms, or input environments to distort AI outputs.

In the context of India's rapidly growing digital ecosystem, compromised AI models can result in biased decisions, false security alerts or denying legitimate services. The big problem with these types of attacks is they may occur without triggering conventional security measures. Transparency, integrity and continuous monitoring of AI systems will be key to creating and maintaining stakeholder confidence in the decision-making process of the automated systems.

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Recommendations

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Despite the increasing sophistication of malicious cyber actors, India is entering this phase with a growing level of preparedness and institutional capacity. The country has strengthened its cyber security posture through dedicated mechanisms and relevant agencies such as the Indian Cyber Crime Coordination Centre, which play a central role in coordination, threat response, and capacity building. At the same time, sustained collaboration among government bodies, non-governmental organisations, technology companies, and academic institutions has expanded cyber security awareness, skill development, and research. These collective efforts have improved detection capabilities, response readiness, and public resilience, placing India in a stronger position to manage emerging cyber threats and adapt to the evolving digital environment.

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Conclusion 

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By 2026, complexity, intelligence, and strategic intent will increasingly define cyber threats to the digital ecosystem. Cyber criminals are expected to use advanced methods of attack, including artificial intelligence assisted social engineering and the exploitation of cloud supply chain risks. As these threats evolve, adversaries may also experiment with quantum computing techniques and the manipulation of AI models to create new ways of influencing and disrupting digital systems. In response, the focus of cybersecurity is shifting from merely preventing breaches to actively protecting and restoring digital trust. While technical controls remain essential, they must be complemented by strong cybersecurity governance, adherence to regulatory standards, and sustained user education. As India continues its digital transformation, this period presents a valuable opportunity to invest proactively in cybersecurity resilience, enabling the country to safeguard citizens, institutions, and national interests with confidence in an increasingly complex and dynamic digital future.

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References

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1. https://www.seqrite.com/india-cyber-threat-report-2026/ 
2. https://www.uscsinstitute.org/cybersecurity-insights/blog/ai-powered-phishing-detection-and-prevention-strategies-for-2026
3. https://www.expresscomputer.in/guest-blogs/cloud-security-risks-that-should-guide-leadership-in-2026/130849/ 
4. https://www.hakunamatatatech.com/our-resources/blog/top-iot-challenges 
5. https://csrc.nist.gov/csrc/media/Presentations/2024/u-s-government-s-transition-to-pqc/images-media/presman-govt-transition-pqc2024.pdf
6. https://www.cyber.nj.gov/Home/Components/News/News/1721/214 

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Digital vulnerabilities like cyber-attacks and data breaches proliferate rapidly in the hyper-connected world that is created today. These vulnerabilities can compromise sensitive data like personal information, financial data, and intellectual property and can potentially threaten businesses of all sizes and in all sectors. Hence, it has become important to inform all stakeholders about any breach or attack to ensure they can be well-prepared for the consequences of such an incident.  

The non-reporting of reporting can result in heavy fines in many parts of the world. Data breaches caused by malicious acts are crimes and need proper investigation. Organisations may face significant penalties for failing to report the event. Failing to report data breach incidents can result in huge financial setbacks and legal complications. To understand why transparency is vital and understanding the regulatory framework that governs data breaches is the first step. 

The Current Indian Regulatory Framework on Data Breach Disclosure

A data breach essentially, is the unauthorised processing or accidental disclosure of personal data, which may occur through its acquisition, sharing, use, alteration, destruction, or loss of access. Such incidents can compromise the affected data’s confidentiality, integrity, or availability. In India, the Information Technology Act of 2000 and the Digital Personal Data Protection Act of 2023 are the primary legislation that tackles cybercrimes like data breaches. 

• Under the DPDP Act, neither materiality thresholds nor express timelines have been prescribed for the reporting requirement. Data Fiduciaries are required to report incidents of personal data breach, regardless of their sensitivity or impact on the Data Principal. 
• The IT (Indian Computer Emergency Response Team and Manner of Performing Functions and Duties) Rules, 2013, the IT (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, along with the Cyber Security Directions, under section 70B(6) of the IT Act, 2000, relating to information security practices, procedure, prevention, response and reporting of cyber incidents for Safe & Trusted Internet prescribed in 2022 impose mandatory notification requirements on service providers, intermediaries, data centres and corporate entities, upon the occurrence of certain cybersecurity incidents. 
• These laws and regulations obligate companies to report any breach and any incident to regulators such as the CERT-In and the Data Protection Board.

The Consequences of Non-Disclosure

A non-disclosure of a data breach has a manifold of consequences. They are as follows:

• Legal and financial penalties are the immediate consequence of a data breach in India. The DPDP Act prescribes a fine of up to Rs 250 Crore from the affected parties, along with suits of a civil nature and regulatory scrutiny. Non-compliance can also attract action from CERT-In, leading to more reputational damage.
• In the long term, failure to disclose data breaches can erode customer trust as they are less likely to engage with a brand that is deemed unreliable. Investor confidence may potentially waver due to concerns about governance and security, leading to stock price drops or reduced funding opportunities. Brand reputation can be significantly tarnished, and companies may struggle with retaining and attracting customers and employees. This can affect long-term profitability and growth.
• Companies such as BigBasket and Jio in 2020 and Haldiram in 2022 have suffered from data breaches recently. Poor transparency and delay in disclosures led to significant reputational damage, legal scrutiny, and regulatory actions for the companies.

Measures for Improvement: Building Corporate Reputation via Transparency

Transparency is critical when disclosing data breaches. It enhances trust and loyalty for a company when the priority is data privacy for stakeholders. Ensuring transparency mitigates backlash. It demonstrates a company’s willingness to cooperate with authorities. A farsighted approach instils confidence in all stakeholders in showcasing a company's resilience and commitment to governance. These measures can be further improved upon by:

• Offering actionable steps for companies to establish robust data breach policies, including regular audits, prompt notifications, and clear communication strategies. 
• Highlighting the importance of cooperation with regulatory bodies and how to ensure compliance with the DPDP Act and other relevant laws. 
• Sharing best public communications practices post-breach to manage reputational and legal risks.

Conclusion

Maintaining transparency when a data breach happens is more than a legal obligation. It is a good strategy to retain a corporate reputation. Companies can mitigate the potential risks (legal, financial and reputational) by informing stakeholders and cooperating with regulatory bodies proactively. In an era where digital vulnerabilities are ever-present, clear communication and compliance with data protection laws such as the DPDP Act build trust, enhance corporate governance, and secure long-term business success. Proactive measures, including audits, breach policies, and effective public communication, are critical in reinforcing resilience and fostering stakeholder confidence in the face of cyber threats.

References

• https://www.meity.gov.in/writereaddata/files/Digital%20Personal%20Data%20Protection%20Act%202023.pdf 
• https://www.cert-in.org.in/PDF/CERT-In_Directions_70B_28.04.2022.pdf 
• https://chawdamrunal.medium.com/the-dark-side-of-covering-up-data-breaches-why-transparency-is-crucial-fe9ed10aac27 
• https://www.dlapiperdataprotection.com/index.html?t=breach-notification&c=IN

The race for global leadership in AI is in full force. As China and the US emerge as the ‘AI Superpowers’ in the world, the world grapples with the questions around AI governance, ethics, regulation, and safety. Some are calling this an ‘AI Arms Race.’ Most of the applications of these AI systems are in large language models for commercial use or military applications. Countries like Germany, Japan, France, Singapore, and India are now participating in this race and are not mere spectators. 

The Government of India’s Ministry of Electronics and Information Technology (MeitY) has launched the IndiaAI Mission, an umbrella program for the use and development of AI technology. This MeitY initiative lays the groundwork for supporting an array of AI goals for the country. The government has allocated INR 10,300 crore for this endeavour. This mission includes pivotal initiatives like the IndiaAI Compute Capacity, IndiaAI Innovation Centre (IAIC), IndiaAI Datasets Platform, IndiaAI Application Development Initiative, IndiaAI FutureSkills, IndiaAI Startup Financing, and Safe & Trusted AI.

There are several challenges and opportunities that India will have to navigate and capitalize on to become a significant player in the global AI race. The various components of India’s ‘AI Stack’ will have to work well in tandem to create a robust ecosystem that yields globally competitive results. The IndiaAI mission focuses on building large language models in vernacular languages and developing compute infrastructure. There must be more focus on developing good datasets and research as well.

Resource Allocation and Infrastructure Development

The government is focusing on building the elementary foundation for AI competitiveness. This includes the procurement of AI chips and compute capacity, about 10,000 graphics processing units (GPUs), to support India’s start-ups, researchers, and academics. These GPUs have been strategically distributed, with 70% being high-end newer models and the remaining 30% comprising lower-end older-generation models. This approach ensures that a robust ecosystem is built, which includes everything from cutting-edge research to more routine applications. A major player in this initiative is Yotta Data Services, which holds the largest share of 9,216 GPUs, including 8,192 Nvidia H100s. Other significant contributors include Amazon AWS's managed service providers, Jio Platforms, and CtrlS Datacenters. 

Policy Implications: Charting a Course for Tech Sovereignty and Self-reliance

With this government initiative, there is a concerted effort to develop indigenous AI models and reduce tech dependence on foreign players. There is a push to develop local Large Language Models and domain-specific foundational models, creating AI solutions that are truly Indian in nature and application. Many advanced chip manufacturing takes place in Taiwan, which has a looming China threat. India’s focus on chip procurement and GPUs speaks to a larger agenda of self-reliance and sovereignty, keeping in mind the geopolitical calculus. This is an important thing to focus on, however, it must not come at the cost of developing the technological ‘know-how’ and research. 

Developing AI capabilities at home also has national security implications. When it comes to defence systems, control over AI infrastructure and data becomes extremely important. The IndiaAI Mission will focus on safe and trusted AI, including developing frameworks that fit the Indian context. It has to be ensured that AI applications align with India's security interests and can be confidently deployed in sensitive defence applications.

The big problem here to solve here is the ‘data problem.’ There must be a focus on developing strategies to mitigate the data problem that disadvantages the Indian AI ecosystem. Some data problems are unique to India, such as generating data in local languages. While other problems are the ones that appear in every AI ecosystem development lifecycle namely generating publicly available data and licensed data. India must strengthen its ‘Digital Public Infrastructure’ and data commons across sectors and domains.

India has proposed setting up the India Data Management Office to serve as India’s data regulator as part of its draft National Data Governance Framework Policy. The MeitY IndiaAI expert working group report also talked about operationalizing the India Datasets Platform and suggested the establishment of data management units within each ministry.

Economic Impact: Growth and Innovation

The government’s focus on technology and industry has far-reaching economic implications. There is a push to develop the AI startup ecosystem in the country. The IndiaAI mission heavily focuses on inviting ideas and projects under its ambit. The investments will strengthen the IndiaAI startup financing system, making it easier for nascent AI businesses to obtain capital and accelerate their development from product to market. Funding provisions for industry-led AI initiatives that promote social impact and stimulate innovation and entrepreneurship are also included in the plan. The government press release states, "The overarching aim of this financial outlay is to ensure a structured implementation of the IndiaAI Mission through a public-private partnership model aimed at nurturing India’s AI innovation ecosystem.”

The government also wants to establish India as a hub for sustainable AI innovation and attract top AI talent from across the globe. One crucial aspect that needs to be worked on here is fostering talent and skill development. India has a unique advantage, that is, top-tier talent in STEM fields. Yet we suffer from a severe talent gap that needs to be addressed on a priority basis. Even though India is making strides in nurturing AI talents, out-migration of tech talent is still a reality. Once the hardware manufacturing “goods-side” of economics transitions to service delivery in the field of AI globally, India will need to be ready to deploy its talent. Several structural and policy interfaces, like the New Education Policy and industry-academic partnership frameworks, allow India to capitalize on this opportunity. 

India’s talent strategy must be robust and long-term, focusing heavily on multi-stakeholder engagement. The government has a pivotal role here by creating industry-academia interfaces and enabling tech hubs and innovation parks.

India's Position in the Global AI Race

India’s foreign policy and geopolitical standpoint have been one of global cooperation. This must not change when it comes to AI. Even though this has been dubbed as the “AI Arms Race,” India should encourage worldwide collaboration on AI R&D through collaboration with other countries in order to strengthen its own capabilities. India must prioritise more significant open-source AI development, work with the US, Europe, Australia, Japan, and other friendly countries to prevent the unethical use of AI and contribute to the formation of a global consensus on the boundaries for AI development. 

The IndiaAI Mission will have far-reaching implications for India’s diplomatic and economic relations. The unique proposition that India comes with is its ethos of inclusivity, ethics, regulation, and safety from the get-go. We should keep up the efforts to create a powerful voice for the Global South in AI. The IndiaAI Mission marks a pivotal moment in India's technological journey. Its success could not only elevate India's status as a tech leader but also serve as a model for other nations looking to harness the power of AI for national development and global competitiveness. In conclusion, the IndiaAI Mission seeks to strengthen India's position as a global leader in AI, promote technological independence, guarantee the ethical and responsible application of AI, and democratise the advantages of AI at all societal levels.

References

• ​​Ashwini Vaishnaw to launch IndiaAI portal, 10 firms to provide 14,000 GPUs. (2025, February 17). https://www.business-standard.com/. Retrieved February 25, 2025, from https://www.business-standard.com/industry/news/indiaai-compute-portal-ashwini-vaishnaw-gpu-artificial-intelligence-jio-125021700245_1.html
• Global IndiaAI Summit 2024 being organized with a commitment to advance responsible development, deployment and adoption of AI in the country. (n.d.). https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2029841
• India to Launch AI Compute Portal, 10 Firms to Supply 14,000 GPUs. (2025, February 17). apacnewsnetwork.com. https://apacnewsnetwork.com/2025/02/india-to-launch-ai-compute-portal-10-firms-to-supply-14000-gpus/
• INDIAai | Pillars. (n.d.). IndiaAI. https://indiaai.gov.in/
• IndiaAI Innovation Challenge 2024 | Software Technology Park of India | Ministry of Electronics & Information Technology Government of India. (n.d.). http://stpi.in/en/events/indiaai-innovation-challenge-2024
• IndiaAI Mission To Deploy 14,000 GPUs For Compute Capacity, Starts Subsidy Plan. (2025, February 17). www.businessworld.in. Retrieved February 25, 2025, from https://www.businessworld.in/article/indiaai-mission-to-deploy-14000-gpus-for-compute-capacity-starts-subsidy-plan-548253
• India’s interesting AI initiatives in 2024: AI landscape in India. (n.d.). IndiaAI. https://indiaai.gov.in/article/india-s-interesting-ai-initiatives-in-2024-ai-landscape-in-india
• Mehra, P. (2025, February 17). Yotta joins India AI Mission to provide advanced GPU, AI cloud services. Techcircle. https://www.techcircle.in/2025/02/17/yotta-joins-india-ai-mission-to-provide-advanced-gpu-ai-cloud-services/
• IndiaAI 2023: Expert Group Report – First Edition. (n.d.). IndiaAI. https://indiaai.gov.in/news/indiaai-2023-expert-group-report-first-edition
• Satish, R., Mahindru, T., World Economic Forum, Microsoft, Butterfield, K. F., Sarkar, A., Roy, A., Kumar, R., Sethi, A., Ravindran, B., Marchant, G., Google, Havens, J., Srichandra (IEEE), Vatsa, M., Goenka, S., Anandan, P., Panicker, R., Srivatsa, R., . . . Kumar, R. (2021). Approach Document for India. In World Economic Forum Centre for the Fourth Industrial Revolution, Approach Document for India [Report]. https://www.niti.gov.in/sites/default/files/2021-02/Responsible-AI-22022021.pdf
• Stratton, J. (2023, August 10). Those who solve the data dilemma will win the A.I. revolution. Fortune. https://fortune.com/2023/08/10/workday-data-ai-revolution/
• Suri, A. (n.d.). The missing pieces in India’s AI puzzle: talent, data, and R&D. Carnegie Endowment for International Peace. https://carnegieendowment.org/research/2025/02/the-missing-pieces-in-indias-ai-puzzle-talent-data-and-randd?lang=en
• The AI arms race. (2024, February 13). Financial Times. https://www.ft.com/content/21eb5996-89a3-11e8-bf9e-8771d5404543

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