About Cybersecurity for MSMEs of India

Previous Training Programme & Event

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Report on the Inception Workshop of
"Cyber Security Capacity Building Programme for MSMEs in India"
Tuesday, November 05, 2024
Kolkata, India

1. Introduction

CUTS International, in collaboration with The Asia Foundation, has launched an innovative cybersecurity training initiative under the APAC Cybersecurity Fund Project. Supported by Google.org, this programme aims to strengthen the cybersecurity ecosystem in the Asia-Pacific region by equipping micro and small businesses with essential digital safety skills. The initiative's scope encompasses ten Indian states—Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Sikkim, Tripura, Rajasthan, Nagaland and West Bengal—with an ambitious target of training 20,600 MSMEs over two years from 2024 to 2026.

To kickstart the training programme, an Inception Workshop of the project was held on Tuesday, 05 November 2024, in Kolkata, India.

The objectives of the Inception Meeting were:

1. To discuss the issues pertinent to the cybersecurity ecosystem that MSMEs face due to rapid digitalisation taking place and how to help combat them;
2. To share information about the training programme with relevant stakeholders and the general public ensuring that everyone who might be interested knows about the programme and can participate or benefit from it; and
3. To build a network of experts that would include officials from relevant departments and
   agencies of the Government of India and respective states where the trainings will be held.

Highlights:

Project Overview and Vision

The inception workshop commenced with a comprehensive presentation by Manvi Tripathi from The Asia Foundation, who outlined the project's expansive scope. The initiative's ambitious reach extends to over 300,000 MSMEs and 600,000 individuals across 12 Asia-Pacific nations, offering specialised training in critical areas such as risk assessment, phishing protection and password management. This strategic approach acknowledges the particular vulnerability of smaller businesses to cyber threats, including phishing and ransomware attacks.

Bipul Chattopadhyay, Executive Director of CUTS International, offered crucial context by highlighting that 97% of India's MSME sector comprises micro-enterprises actively exploring digital business opportunities. These enterprises, typically operating with limited capital reserves, face heightened vulnerability to digital fraud—a situation that can lead to temporary closures and significant erosion of customer trust.

Nandita Baruah, Country Representative in India for The Asia Foundation, pointed out the complex nature of digital platforms, which, while offering significant benefits, also present heightened vulnerabilities due to their borderless nature—allowing access from virtually anywhere. She highlighted the rise in cybercrimes linked to advanced technologies like Artificial intelligence (AI) and underscored the need for vigilant cybersecurity practices to protect against these threats.

Sanjay Kumar Das, W.B.C.S (Exec.), Managing Director of West Bengal Electronics Industry Development Corporation Limited (WEBEL), highlighted the focus has been only on cybersecurity for large enterprises over the past two decades, with solutions primarily developed by major tech corporations like Google, Amazon, Facebook, Apple, and Microsoft (GAFAM). He noted that these firms have developed extensive security solutions and dominated the market, yet their products frequently stay out of reach for individuals or MSMEs because of high prices or proprietary limitations.

Launch of Web Portal:

At the workshop, CUTS unveiled a dummy version of the new web portal which is designed to provide self-paced, online training on cybersecurity to both registered and non-registered MSMEs. This portal will host comprehensive training materials, allowing anyone associated with a micro, small, or medium enterprise to access foundational cybersecurity education from anywhere in the country.

Technical Session: Existing Cyber Security Challenges for MSMEs in India and the Importance of Creating Mechanisms to Build Cyber Resilient Ecosystems.

Dr. Lalzirmawia Chhangte (IAS), Secretary of the Commerce and Industries Department, Government of Mizoram, delivered comprehensive insights into the digital transformation of MSMEs. He noted that these enterprises are increasingly leveraging Information Technology (IT) and Artificial Intelligence (AI) to enhance their operations across multiple fronts, including product diversity, branding, marketing, and market reach.

Dr. Mou Sen, Joint Director, MSME Department, Government of West Bengal, highlighted the critical need for cybersecurity awareness and digital literacy among MSMEs, especially micro-enterprises in rural and artisanal sectors. In West Bengal alone, MSMEs comprise over 90 lakh units, with more than 99.5% of them being micro-enterprises, many of which are led by women, she informed. She accentuated that although these businesses are urged to adopt digital operations, they encounter obstacles originating from the absence of formal education and digital skills along with restricted access to secure digital resources, making them vulnerable to cyber threats. Dr. Sen proposed that, due to the increase in incidents of digital fraud, it is crucial to provide MSMEs with the skills necessary to safeguard their revenue, products, and sensitive information in an ever more online, globalised marketplace.

Hendry Rupini, Principal, Directorate of Industries and Commerce, Government of Tripura, brought to attention that over 98% of MSMEs in Tripura are micro-enterprises, with minimal capital and resources, making them particularly vulnerable to cyber threats. The state government has taken steps to support these enterprises through technological advancements, such as implementing e-cabinet and e-office systems across departments, making Tripura a leader in digital infrastructure in the Northeast. Additionally, Tripura introduced a state cybersecurity policy in 2018, recognising the vulnerabilities that come with digital growth and the increased exposure to cyber threats.

Chimila Sherpa, Assistant Director, Commerce & Industries Department, Government of Sikkim, began by noting that even though MSMEs contribute 30% to India's GDP they also face significant cybersecurity threats, accounting for 43% of cyber-attacks nationwide. The primary challenge lies in limited budgets, which prevents these smaller enterprises from investing in adequate cybersecurity measures, unlike larger corporations that can afford frequent training and safeguards, she mentioned. The speaker shared a personal anecdote highlighting the importance of phishing awareness, especially for MSMEs where staff may inadvertently click on malicious links, exposing sensitive financial or customer data.

Sonal Kamal, OSD (R&D), C-DAC, Patna, highlighted C-DAC's role in bolstering cybersecurity for MSMEs, particularly in the Northeast, through the Cyber Safe East India initiative, developed in partnership with CUTS International. She emphasised C-DAC’s commitment to advancing indigenous cybersecurity solutions, reducing reliance on foreign technologies, and ensuring that sensitive data remains within India. This approach aims to strengthen cybersecurity awareness and capabilities across diverse sectors, including MSMEs and women entrepreneurs, to protect against escalating threats like ransomware, Kamal added. One of C-DAC's current projects focuses on ransomware recovery, aiming to provide solutions that avoid paying ransom demands, she noted.

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