The Indian Pharmaceutical Industry: The Next Star On The Horizon

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In the post-liberalization era, the IT sector has been the star performer in the Indian economic growth story in popular perception. The success of the pharmaceutical industry in India during the same period is not so well known, though it has also experienced rapid growth at a CAGR of around 12-15% consistently. The sector was valued at over US $37 billion in 2018. Pharma exports from India reached over US $19 billion in 2018-19 with over 20% of the global exports in generics coming from India. India supplies over 50% of the global demand for all vaccines and over 40% of all generics in the US. 

The Indian pharma sector currently accounts for about 10% of the global pharma industry in terms of volume and around 2.5% in terms of value. It is now ranked the third largest worldwide in volume terms and the 13th largest in terms of value. It is projected to grow to over US$50 billion by 2020. Under the ‘Pharma Vision 2020’, the government is committed to make India as the world’s leading destination for end-to-end drug discovery and innovation by 2020. How can this vision be achieved?   

There are several factors already present that are working to India’s advantage in the pharma sector. These include its ability to produce high quality medicines at comparatively cheaper costs and increasing private sector investments in R&D. Indian pharma companies are now investing around 8.5% of their sales on R&D. India also allows 100% FDI in the pharma sector under the automatic route. With increasing penetration of health insurance and improving drug affordability due to rising economic prosperity, India is well placed for a major expansion in this sector. However, to become the world leader in drug discovery and innovation, several key initiatives by the government and the industry need to be put in place.

Today, India primarily produces branded generics and has limited capabilities in R&D, new drug development and innovation.  As India has already introduced product patents, the Indian pharma companies need to increase their expenditure on R&D significantly to develop new drugs and boost sales.

Secondly, Indian companies also need to focus on diversifying exports beyond generics to gain market share and increase value addition. Currently, the Indian firms mostly focus on conventional tablets and capsules with very little presence in non-conventional dosage forms, advanced formulations and biotech-based medicines. This again requires higher focus on R&D and innovation. The Indian firms also need to expand their presence in new markets, notably in Latin America, Russia and Eastern Europe.

Thirdly, joint ventures with multinational companies can help in improving R&D and new drug discovery. The total cumulative FDI in the pharma sector stood at around US$ 16 billion during April 2000 to March 2019. There is good scope for attracting more FDI in this sector if there is greater focus on R&D and innovation. Expansion by Indian firms through acquisitions in overseas markets can also help in improving efficiencies and gaining market share.

India already has the key growth drivers in place for the pharma sector, both on the demand and the supply sides. On the demand side, rising incomes are improving the affordability of drugs and increasing penetration of insurance is helping in improving access to quality healthcare services. The PM Jan Aarogya Yojana is helping to expand the coverage of health insurance to a much wider section of the population including in the rural areas. The overall government expenditure on health has shown a CAGR of over 12% during the last seven years leading to a significant rise in healthcare services. On the supply side, India is already a major global hub for manufacturing of generics with over 22% of all the USFDA approved plants worldwide. India enjoys a significant cost advantage and the availability of skilled manpower would fuel further growth in this sector. About 120 drugs are expected to go off-patent during the next ten years with estimated US$80-250 billion revenue worldwide, which presents a big opportunity to the Indian firms.

To boost the growth of the pharma sector further, several policy measures need to be taken. These include reduction in time required for approval of new manufacturing facilities and NOC for export licenses, single window clearance mechanism for drug approvals, and support for technology upgradation. The recent move by the government to set up mega pharmaceutical parks would help in reducing dependence on imports of APIs or bulk drugs. The National Biopharma Mission is expected to support the development of biopharmaceuticals and new drug development in India. India already enjoys several advantages in the pharmaceutical sector due to its low cost of production, availability of skilled human resources and world-class manufacturing facilities. However, it needs to significantly boost R&D and innovation and focus on new drug discovery.  If appropriate initiatives by the government and the industry are taken to develop the sector further, it can certainly become the next star on the horizon and make India the world leader in pharmaceuticals.

Source of the image: https://www.europeanpharmaceuticalreview.com/news/65288/indias-pharmaceutical-100bn/

The Seven Pagodas: An Ancient Abode Of The Gods Called Mamallapuram

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Mamallapuram is in the news globally due to the impending summit of the Indian Prime Minister with the Chinese premier during October 11-12, 2019. Situated on the east coast around 60 kilometres south of Chennai, this ancient town has a rich history dating back to the 1st century BC. Declared as a UNESCO World Heritage Site, the town is a major tourist attraction in the state of Tamil Nadu in India.

Mamallapuram was a major seaport during the first millennium CE and the region thrived during the reign of the Pallavas. It was founded by the Pallava king Narasimhavarman I during the 7th century AD. The name of the town itself is perhaps derived from “Mamallan”, meaning a great warrior, a reference to Narasimhavarman I. It was ruled by the Pallava kings from Kanchipuram, the capital of their kingdom, from the 3rd to the 9th centuries AD. They used the port as a major trading centre with Sri Lanka and South-East Asia. The port was also an active hub of global trade during this period as Chinese and Roman coins from the 4th century AD have been found at this place.

The town was also known by several other names during ancient times, such as Mamallapatinam and Mahabalipuram. The ancient town had seven pagodas on the shore, of which only one, known as the Shore Temple, now survives. Due to these seven pagodas, the town was also known as The Seven Pagodas to the ancient mariners.  

The temples at Mamallapuram depict events mainly from the Indian epic Mahabharata and were built largely during the reign of Narasimhavarman and his successor Rajasimhavarman. There are 32 monuments in the town spread over an area of around four square kilometres. The major monuments include rathas or temples in the form of chariots, mandapas or cave sanctuaries, massive open-air rock reliefs such as the Descent of the Ganges, and the famous 7th century Shore Temple dedicated mainly to Lord Shiva and Lord Vishnu.  

The Chinese Connection

Mamallapuram also has a significant historical connection with China. The port was a major trading hub with China, Sri Lanka and South-East Asian countries. The Chinese traveller Hiuen Tsang is said to have visited the town. It is also believed that Bodhidharma, a famous Buddhist Monk in China, was a son of a Pallava king who travelled to China from Mamallapuram in the 6th century AD.

With its rich history and historical connections with China, Mamallapuram is the most appropriate place for a historic summit between the leaders of the two most populous nations and emerging superpowers in the world.

Source of the Photograph: http://www.traveltriangle.com

(The author is a senior IAS officer in Tamil Nadu and is currently working as the Principal Secretary, MSME Department. The views are personal).

Single Window Portal: Improving the Ease of Doing Business in Tamil Nadu for the MSMEs

Introduction

The Micro, Small and Medium Enterprises (MSME) sector is an important, highly vibrant and dynamic sector of the Indian economy as it has contributed greatly to the economic growth over the years. The MSMEs manufacture more than 6000 products, contributing about 45% to manufacturing and around 40% to exports. With its agility and dynamism, the sector has shown an admirable innovativeness and adaptability to survive the recent economic scenario. It is the MSME sector which can help realize the target of the National Manufacturing Policy of raising the share of manufacturing sector in GDP from 16% at present to 25% by the end of 2022.

MSMEs in Tamil Nadu

There has been a phenomenal growth of MSMEs in Tamil Nadu. MSMEs produce a wide variety of products in almost all sectors. The prominent among them are textile, garments, engineering products, auto components, leather products, plastics, etc. 

Around 20.13 lakh entrepreneurs have filed the Entrepreneurs’ Memorandum (EM) Acknowledgement Part-II and Udyog Aadhaar Memorandum (UAM), providing employment opportunities to about 128.91 lakh persons with a total investment of over Rs 2.23 lakh crores.

Improving the Ease of Doing Business

The Government of Tamil Nadu has enacted the Tamil Nadu Business Facilitation Act, 2018 to enhance the ease of doing business in the state. The Act provides for single point receipt of applications for securing clearances that are required to establish or expand an enterprise and for those required during the normal course of business including renewals in a time-bound manner. The Act also provides for an effective grievance redressal mechanism and fine in case of failure of Competent Authorities to act within a time frame and for matters connected therewith or incidental thereto.

The Act covers 54 clearances which include pre-establishment, pre-operation, renewals, incentives, etc. District Industries Centres and Guidance Bureau are designated as the Nodal Agencies for MSMEs and large industries respectively for operating the single window mechanism.

The Act provides for a 3 tier institutional structure to monitor and review the progress of single window mechanism for the MSMEs:

  • District MSME Single Window Committee
  • State MSME Single Window Committee and
  • MSME Investment Promotion and Monitoring Board.

Single Window Portal

The Commissionerate of Industries and Commerce of the Government of Tamil Nadu has taken a number of steps to improve the ease of doing business and create an investor-friendly climate in the state to promote investments in the MSME sector. The most important initiative in this regard has been to create an online Single Window Portal exclusively for the MSMEs to enable them to obtain approvals and ‘No Objection Certificates (NoCs)’ from various government departments and agencies for establishing their enterprises. It allows the MSMEs to obtain all the approvals and NoCs through a single Composite Application Form (CAF) from 12 government departments and agencies in the state including the Directorate of Town and Country Planning (DTCP), Tamil Nadu Pollution Control Board (TNPCB), Fire Department, Directorate of Industrial Safety and Health (DISH), Public Health, Rural Development and Panchayati Raj (RD&PR) and Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO). The approvals cover pre-establishment, operation and renewal stages and the entire process is completely online including payment of fees. All the departments and agencies are required to give approvals online within a defined time-frame after the complete application has been submitted. The application need not submit any paper documents and need not visit any government office in person.

The portal may be accessed at https://easybusiness.tn.gov.in/msme/.  The portal has the following features:

  • Single point acceptance and electronic distribution of applications to the respective Competent Authorities without the need for applicants to physically visit the concerned offices.
  • Custom generation of forms for individual Competent Authorities along with requisite attachments.
  • Single point of capture of information with the feature of auto-population of data.
  • Online approval by the concerned Competent Authorities and provision to download the certificate online.
  • Online tracking/automatic alerts to applicants through SMS/emails.
  • Customized online MIS reports for monitoring at different levels.

Online Implementation of All Schemes and Incentives for MSMEs

The Commissionerate of Industries and Commerce has taken another major step towards improving the ease of doing business in the state for the MSMEs by making the implementation of all the schemes and incentives for them completely online. The portals for the various schemes and incentives are given below:

Loan Schemes:

  1. NEEDS : https://msmeonline.tn.gov.in/needs/index.php
  2. UYEGP: https://msmeonline.tn.gov.in/uyegp/index.php
  3. PMEGP: https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp

Incentive Schemes:

  1. Capital Subsidy: https://msmeonline.tn.gov.in/incentives/capital/index.php
  2. LTPT Subsidy: https://msmeonline.tn.gov.in/incentives/index.php
  3. Generator Subsidy: https://msmeonline.tn.gov.in/incentives/index.php
  4. Interest Subvention:               https://msmeonline.tn.gov.in/incentives/is/index.php
  5. Promotion of Energy Audit and Conservation of Energy (PEACE):                             https://msmeonline.tn.gov.in/incentives/index.php
  6. Amma Skill Training and Employment Scheme: https://msmeonline.tn.gov.in/ammaskill/index.php

It is relevant to note that all the above initiatives have been implemented with full involvement of all the relevant stakeholders, e.g., MSME associations at the state and district levels and the District Industries Centers in the districts. In recognition of its successful efforts to implement the Single Window Portal and transform the implementation of various schemes and incentives for the MSMEs through online applications, the Commissionerate of Industries and Commerce has been awarded the ISO 9001:2015 certification by the Bureau of Indian Standards (BIS) in July 2019.

Conclusion

Tamil Nadu is a leading state in the country in the MSME sector, both in terms of its overall size and the varieties of products that it produces. It is poised to achieve even greater heights in the years to come with a number of initiatives already being implemented in the state to improve the ease of doing business for the MSMEs. The Commissionerate of Industries and Commerce is actively working with all the stakeholders in the MSME ecosystem in the state to ensure that it is able to support the growth of the sector even further.

(The author is a senior IAS officer in Tamil Nadu and is currently working as the Principal Secretary/Industries Commissioner and Director of Industries and Commerce, Government of Tamil Nadu. The views are personal.)

Empowering the Poor Through Mobiles

Can a simple device like a mobile phone be used for empowering the poor and the marginalized? Consider this: an NREGA worker receives her weekly wages in her bank account. However, she has no way to check the amount credited unless she visits the bank branch or goes to an ATM. Doing so may involve substantial costs in travel and lost wages as they are most likely to be located far away from her village. However, if her bank account is mobile enabled, she can do virtually all the transactions through a simple SMS or voice based interface in her own language.

There are myriad other ways in which a mobile phone can empower the poor. A Primary Health Centre (PHC) in a rural area can send SMS or voice alerts to all pregnant women for scheduled health check- ups. The same can be done for immunizations for children. A health worker can visit the households in her village with a low-cost mobile phone or a tablet with an application to capture all the information about the health status of the family and the data can be transmitted to the backend server in real time. All this can dramatically improve the outcomes of programmes like the National Rural Health Mission. Similarly, for all sales of commodities under the PDS, SMS alerts can be sent to the ration card holders to keep a check on fraudulent withdrawals. A citizen will also be able send a complaint about deficiency in any service far more easily using a mobile phone. All this information can be captured and made available to the concerned government departments in real time and can be monitored from anywhere. Imagine the impact it will have on transparency, accountability, and quality of service delivery across the board. Improving the systemic accountability and bottom-up participation of citizens in governance are sure shot ways to improve the quality of governance and make a substantial dent in the all-pervasive corruption.

How can all this be made possible? Mobile phones are ubiquitous in India today with over 900 million subscribers, of which over one third are in rural areas. The reach of mobiles is much greater than that of computers and internet. They have relatively low physical infrastructure requirements and are more cost-effective in remote areas. SMS and voice are powerful mobile technologies that do not require internet connectivity to work. This can prove to be a boon in rural and remote areas. With the falling prices of mobile devices, endless possibilities have emerged for their use in significantly enhancing the outcomes of social and economic development programmes. Their entry barriers are low as they require only basic literacy for use and offer affordable, portable, and real-time access to communication and information to the people who previously had no access to such communication modes. 

Mobiles can be used for enhancing developmental impacts in diverse sectors such as health, education, agriculture, animal husbandry, etc. They can help in combating poverty by improving the delivery of services in these areas. Tablets can significantly enhance the educational experience of students through well-designed content. Mobiles can also act as potent instruments for saving lives by sending warnings and alerts in disasters and crisis situations. They can also be used as tools for economic empowerment for the farmers and poor micro-entrepreneurs in rural areas by reducing information asymmetries as market information can be accessed almost instantly reducing travel expenditures and increasing speed of trade.  For women, they allow greater independence and enhanced security and can be used to monitor violence against them.

Mobile technologies can also be used in new and innovative ways to engage with citizens and stakeholders, for example in holding consultations and gathering feedback. They can help in strengthening the demand side of governance by allowing the citizens to engage with public institutions and demand better services. This can foster transparency and accountability and generate new possibilities for open government. They can also enable disintermediation in the delivery of services by facilitating direct contact with the citizens.

M-governance is an umbrella term that covers the use of mobile technologies (e.g., SMS, USSD, voice, location, mobile applications, etc.) to enhance the governance and developmental impacts in various domains. While deeply intertwined to e-governance, it has emerged as a separate domain aimed specifically at addressing the digital divide in access to government services and programmes. However, by themselves, they cannot be effective in development or governance. To make them act as catalysts in this process, policies need to be in place to support access to information, development of relevant content and services in the local languages, an enabling infrastructure, and an effective awareness and communication campaign aimed at the end users.  Recent initiatives by the RBI for mobile based financial inclusion and by the Department of Electronics and IT to make mobile based provisioning of government services mandatory by all government departments and agencies offer great hope to achieve this vision.

(The above article was published on February 27, 2013 in The Hindu. It is available at: https://www.thehindu.com/todays-paper/tp-features/tp-opportunities/empowering-the-poor-through-mobiles/article4457237.ece)

India In The Global Cyber Security Market

Introduction

The cyberspace, comprising ICT networks, computer systems and mobile networks and devices connected to the Internet, is by its very nature borderless. A country’s cyberspace is an integral part of the global cyberspace. The increasing penetration of Internet, particularly in developing countries, is leading to exponential growth in cyberspace. The rapid growth in the ownership of smart mobile devices (mobile phones and tablets) that can access the Internet has added to the increasing expansion of cyberspace in the country.

The exponential expansion in the global cyberspace has raised very pertinent questions about its security. The success of the global Internet system can be chiefly attributed to its relative openness and low entry barriers. However, these very same factors are also partly responsible for the grave threats to the cyberspace in the forms of cyber espionage, cyber warfare, cyber terrorism and cyber crime (IDSA, 2012). As nations spend heavily on creating the necessary ICT infrastructure to bring more citizens online to derive benefits from social and economic development opportunities that the Internet provides, cyberspace is expected to face greater threats in the future. Cyber security has consequently acquired much greater importance today than in the recent past. Several incidents of cyber crime across the world have led to heightened awareness about ensuring cyber security. What are the opportunities and challenges that this scenario is likely to throw up domestically and globally? How can countries like India address the challenges and benefit from the opportunities in the domestic and the global cyber security market?  In this article, I attempt to answer these central questions.

The rest of the paper proceeds as follows. First, I discuss the main features of the global cyberspace briefly. Then I discuss the main vulnerabilities of the global cyberspace and how they pose a threat to its security. Next, I discuss the organizational and coordination challenges for cyber security. Then, I discuss the opportunities and challenges for the country in the domestic space for cyber security and then I present the opportunities and challenges for India in the global cyber security market. Finally, I conclude. 

The Global Cyberspace

To appreciate the opportunities and challenges in the global cyber security market, it is necessary to understand its size and nature in all its ramifications.  As per the latest estimates, the number of Internet users in the world has risen to over 2.7 billion in 2013 corresponding to nearly 40% of the world’s population (ITU (1), 2013). The active mobile broadband subscriptions stood at 2.1 billion in 2013. Globally, 750 million households, comprising 41% of the total, are connected to the Internet. The expansion of the Internet is projected to be on an unprecedented scale in the future with the advent of the Internet of Things (IoT) and the IPv6 protocol that would make possible virtually unlimited IP addresses.

Similarly, the expansion of the Internet is taking place at an exponential rate in India as well. The total percentage of individuals using the Internet in India has grown from a mere 3.95% in 2007 to 12.58% in 2012 (ITU (2), 2013). The total number of Internet users in the country is estimated at 164.8 million as on March 31, 2013 (TRAI, 2013). Out of these, 143.2 million users accessed the Internet through mobile devices.

Vulnerabilities of Cyberspace

As noted before, by its very nature, the global cyberspace is borderless and cannot be isolated to national or regional boundaries. One of the fundamental concerns on cyber security arise from the fact that the core Internet protocols are insecure and the expansion of Internet is taking place on the same insecure systems. The global explosion in mobile based Internet usage is increasing the vulnerability of the cyberspace.  As the Internet has become central to the social, economic and political life of citizens and nations, countries are investing heavily in establishing information and communications technology (ICT) infrastructure to bring more and more citizens online. Thus, protection of the critical ICT infrastructure has emerged as another major challenge in addition to securing the communications and transactions conducted over the Internet. 

The vulnerability of the cyberspace is already being exploited by both state and non-state actors (Marmon, 2011). The attacks in the cyberspace can be mounted by potential adversaries intending to inflict damage at social, economic or commercial interests. They can also be targeted at achieving political or military objectives. They are often aimed at weakening or crippling the critical ICT infrastructure of the adversary to cause denial of access to information and networks or to render them non-functional. In 2007, there were massive cyber attacks on Estonia aimed at disabling the websites of government ministries, political parties, newspapers, banks, and companies. The attackers, suspected to be from a major country with involvement of state actors, employed sophisticated cyber warfare techniques to disable Estonia’s critical ICT networks and e-government infrastructure (Traynor, 2007).

The nature of cyberspace makes it very difficult to identify the perpetrators of these attacks and makes it especially attractive for enemies who do not want to be engaged in conventional conflicts. There is no contact or physical action across the border and the attacking party can completely deny any involvement. The attacked party may not even be sure as to when and how to react. Both the state and non-state actors have developed capabilities to engage in cyber attacks for prolonged periods without being identified.

Organizational and Coordination Challenges in Cyber Security

There are some additional features of critical ICT infrastructure and cyberspace that merit discussion here. Cyber infrastructure is largely owned and operated by the private sector. However, ensuring cyber security involves a multi-agency and multi-layered effort involving both state and private agencies. This poses a significant organizational and coordination challenge for the agencies dealing with cyber security.

At an organizational level, cyber security is not merely a technological issue, but a management issue as well. This encompasses enterprise risk management and involves human, process reengineering, change management, legal, network and security aspects. While the private agencies are responsible for securing their individual pieces of the infrastructure, the seamless flow and exchange of information and inter-linkages amongst the networks make it essential to coordinate the entire effort through an integrated command and control entity that is accountable for cyber security. The roles and responsibilities of all the parties need to be clearly specified. There is a need for governments to establish the appropriate policy mechanisms and legal structures. While security investments made by the private industry take care of their individual corporate needs, they might fall short of the requirements to secure a national network-wide infrastructure. Thus, a pure market-based approach to ensure cyber security may not work. A key challenge in this regard is to provide for the additional investments that might be required to secure the cyberspace and the critical ICT infrastructure for the country. This might come from incentives provided to the industry to generate collective action in a well planned approach to secure the critical ICT infrastructure.

Lack of capacity at the executive and policy making levels within organizations is another major challenge in ensuring cyber security. There is a need for a focused approach to build capacities to deal with security incidents, deploy latest technological solutions, provide adequate training to all the relevant levels of employees and deal with process transformation and change management required to achieve this goal.

Opportunities and Challenges in the Domestic Market for Cyber Security

Before we discuss the opportunities and challenges for India in the global cyber security market, it is relevant to discuss the cyber security scenario and the emerging opportunities and challenges within the country and how the government and the industry can meet them and benefit from the opportunities. As India develops its ICT infrastructure in an effort to bring more and more of its citizens online through projects such as the National Optical Fibre Network (NOFN) and makes greater efforts to provide public services electronically through its e-governance projects, the risks for cyber security in the country are going to be much higher in future. It would also make the entire ICT infrastructure and cyber assets in the country far more vulnerable to cyber attacks from both state and non-state actors from countries inimical to India. Are we geared to meet these challenges?

The government has recently taken several steps to ensure greater focus on these issues within the country. It has recently notified the National Cyber Security Policy 2013 (DeitY, 2013) with the goal of addressing the cyber security domain comprehensively from a national perspective. The main goal of the policy is to make the cyberspace secure and resilient for citizens, businesses, and the government. The policy envisages the establishment of national and sectoral mechanisms to ensure cyber security through the creation of a National Critical Information Infrastructure Protection Centre (NCIIPC).  Computer Emergency Response Team (CERT-In) shall act as the nodal agency for coordination of all cyber security and crisis management efforts. It will also act as the nodal organization for coordination and operationalization of sectoral CERTs in specific domains in the country.

Though efforts are being made to create an effective policy framework to deal with cyber security in the country, there are areas where significant challenges lie in ensuring cyber security. I would like to mention e-governance as a specific case in point here. The country has put in place a separate core ICT infrastructure for e-governance consisting of state wide area networks (SWANs) and state data centres (SDCs) in each state and union territory. Common Service Centres (CSCs), run by private village level entrepreneurs (VLEs), act as the front end for delivery of these services in rural areas. Currently, over 100,000 CSCs are operational across the country. Recently, mobile governance has been implemented to bring all government services on the mobile platform. The National e-Governance Plan is the flagship programme in e-governance consisting of 31 Mission Mode Projects (MMPs) spanning across a large number of government ministries and departments both at the national and state levels. During the last seven years of its implementation, NeGP has achieved good success with 23 out of the 31 projects delivering services electronically to the citizens and businesses.

Though NeGP has succeeded well, ensuring cyber security has been a big challenge as it involves protecting critical ICT infrastructure such as SWANs, SDCs and the applications of various departments running on them. Though scheme specific guidelines have been issued and several states have made significant efforts to protect their cyber assets, there is a need for a comprehensive policy on cyber security in e-governance and ensuring uniformity in its implementation across the country. Application level security is another important domain where greater efforts are required to ensure security.

The scenario discussed above presents big opportunities for the government and the industry to address cyber security comprehensively. As the government moves forward to put a policy framework in place, the IT industry can develop appropriate technological solutions to address the cyber security requirements of the core ICT infrastructure and applications. Massive opportunities for the industry are also opening up in sectors such as defence and telecom where the needs for cyber security are more critical.

Opportunities and Challenges in Global Cyber Security

Protecting the cyberspace and the critical ICT infrastructure have emerged as major challenges globally due to the factors discussed above. The Internet has emerged as the central feature affecting the lives of billions globally through e-commerce, banking, travel, e-government, email, etc. With the emergence of smart technologies, a host of utility services such as water supply networks, electricity distribution, etc. are critically dependent on ICT networks. Electronic systems and communications play a key role in the operation of equipment in the defence sector.

What are the opportunities and challenges that such a situation presents before nations like India? To analyse these aspects, it is important to understand the key trends in emerging technologies and how they impact the security scenario in cyber space. In the following paragraphs, I discuss seven such key trends and explain how they present challenges and opportunities for the Indian industry globally.

The most important phenomenon that is driving the expansion in the usage of Internet worldwide is mobility. The advent of mobile devices has brought unprecedented numbers of users online and has consequently increased the risks associated with cyberspace as many of the mobile and tablet users may be first time users of Internet and may not be skilled enough to understand these risks. Expansion in the usage of smart phones and tablets has also brought into focus the security of the operating systems and the applications that run on them. As the usage expands, so will the attempts by hackers to break into these devices and steal sensitive personal and corporate information. While this poses challenges for the device manufacturers and OS developers, it presents great opportunities for the Indian firms working in the mobility domain. As India is known for its prowess in software development, developing security solutions and secure applications for the mobile world is an unprecedented opportunity globally that is just waiting to be grabbed.  

The second most important technology trend that is driving the ICT industry is the emergence of the cloud platform. While this phenomenon started emerging a few years ago, it is only now that it is maturing and the cloud based solutions are being deployed across a number of domains in business, industry and government. Ensuring proper security of applications and data on the cloud is a major challenge and its entire implications are still not clear. Even a few cloud failures can result in massive breaches in security and devastating loss of data for the users. As the cloud encompasses the entire gamut of infrastructure, platform, and software as services, developing security solutions for this platform presents the Indian industry with an outstanding opportunity globally. A related segment which also presents great opportunities is data centre operations and management. Another related phenomenon is the emergence of security as a service on the cloud. This is another space that offers good opportunities for Indian firms.

The third important trend that has emerged recently is that of use of multi-factor authentication to improve security. Just a simple password is not enough to ensure access to a host of applications and services in areas such as banking, insurance, financial transactions, government services etc. In India, already Aadhaar based biometric authentication has emerged as a new mechanism to authenticate the identity of users. This presents an excellent opportunity for the Indian industry to develop applications in this domain and address the security concerns.

The fourth trend that is causing significant impact on cyber security globally is the continuous morphing of hacker groups and individuals to maintain their anonymity. This poses serious challenges for the organizations and government agencies trying to secure cyber space as the attacks cannot be attributed to any specific entity. However, this situation also presents very good opportunities for the Indian industry to continuously evolve technologies that can help in unmasking the identity of these anonymous attackers. Active cooperation amongst government agencies and organizations internationally are required to achieve the desired objectives in this area. Efforts in this direction by agencies such as the United Nations are already going on and the issue of global cyber security is likely to come up at the 68th session of the UN General Assembly in September 2013 (United Nations, 2013).    

The fifth trend that is impacting the cyber security scenario is the increasing involvement of state actors in cyber war aimed at crippling the information and communication infrastructure of their targeted countries and crippling their social, economic, government and military activities. There is enough evidence of involvement of state actors in several recent incidents of cyber attacks (Marmon, 2011). Stuxnet is a case in point (Vijayan, 2012). This situation has emerged as a serious challenge for countries like India which are surrounded by several inimical neighbours. However, this also presents the country with a big opportunity to develop solutions to secure its ICT infrastructure and cyber assets.

The sixth emerging trend that will have a significant bearing on cyber security is the related issue of ensuring privacy and confidentiality of information pertaining to individuals and businesses. One of the motivations for cyber attacks is to gain access to or steal information that has commercial value or that helps the attackers to commit fraud with that information. To ensure privacy, effective laws and regulations need to be put in place to ensure what data can be used and shared and for what purpose. It also has bearings on where the data can be stored in servers. This is already a major concern in some domains such as healthcare, where privacy and security concerns about hosting and sharing health data are very significant. As India is the world leader in IT services outsourcing business, this offers a big opportunity for the Indian government to put in place effective policies to assure the international community that the country respects the concerns on privacy and confidentiality of data. The Indian industry should exploit this opportunity in a big way to get a bigger share of the worldwide market in IT and IT enabled services.

Lastly, there are greater efforts being made now internationally at multilateral level to address the global concerns on cyber security. Recently, the international Group of Governmental Experts, representing 15 countries including India, has submitted a report to the United Nations secretary general on enhancing cyber security globally (United Nations, 2013). International cooperation in cyber security presents great opportunities for India to spearhead and lead the efforts to build global consensus around the approaches to address the issues. It would also open up tremendous opportunities for the Indian industry to develop and showcase its capabilities to offer technical solutions to deal with the threats.

Conclusion

Cyber security has emerged as one of the most important concerns internationally due to the enormous damage that cyber attacks can cause to the core ICT infrastructure and information assets that are central to the social, economic and political life of nations, citizens, and businesses. As the attackers can disguise themselves easily and their real identities are very difficult to ascertain, it is even more incumbent upon the stakeholders involved to take urgent measures to ensure cyber security. While India has recently taken a number of steps to enhance the security of its vital ICT infrastructure and cyber assets at the national level, specific domains such as e-governance, telecom, defence, etc. need specific strategies to deal with cyber security more comprehensively. Globally, a number of countries are grappling with similar issues and are stepping up efforts to enhance cyber security within their territories. Efforts are also on at multilateral level, such as the UN, to deal with the issue comprehensively and formulate strategies that can succeed in addressing the concerns globally. As India is known worldwide for its IT prowess, this scenario presents great opportunities for the country to lead the efforts internationally to build consensus around approaches to address cyber security globally. It also presents tremendous opportunities for the Indian IT industry to develop technical solutions to deal with the threats and secure the ICT infrastructure and the cyber assets both in the domestic space as well as internationally.

References

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(The above article was published in Seminar, October 2013. It is available at: http://www.india-seminar.com/2013/650/650_rajendra_kumar.htm).