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Cyber threats, geopolitical shocks, climate change top risks for Indian businesses, finds industry survey

February 08, 2026 4 min read Economics Internal Security GS Paper 3
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What Happened

  • The FICCI-EY Risk Survey 2026 found that 51% of Indian businesses rank cybersecurity breaches as the top risk to organisational performance, followed by changing customer demands (49%) and geopolitical events (48%).
  • Nearly two-thirds of business leaders cited economic slowdown (68%), prolonged inflation/volatility (67%), and geopolitical tensions (64%) as material drivers of business outcomes.
  • 57% of respondents flagged potential data theft and insider fraud as significant risks, while 47% acknowledged difficulty in addressing increasingly sophisticated cyber threats.
  • 45% of surveyed businesses view climate change as a critical financial risk, with environmental compliance and sustainability expectations rising sharply on boardroom agendas.
  • The convergence of inflation, cyber threats, AI governance, climate exposure, and regulatory change is compressing strategic planning cycles for Indian companies.

Static Topic Bridges

National Cyber Security Policy and CERT-In Framework

India's cybersecurity architecture rests on the National Cyber Security Policy (2013), the Information Technology Act, 2000, and the operational role of the Indian Computer Emergency Response Team (CERT-In). CERT-In, established under Section 70B of the IT Act, serves as the national agency for cybersecurity incident response, operating a 24x7 helpdesk. All cyber incidents, including data breaches and hacking, must be reported to CERT-In.

  • The National Critical Information Infrastructure Protection Centre (NCIIPC), under the National Technical Research Organisation (NTRO), protects Critical Information Infrastructure (CII) in sectors such as power, banking, telecom, transport, and government.
  • CERT-In's April 2022 directive mandated that organisations report cyber incidents within 6 hours of detection, one of the strictest timelines globally.
  • India's Digital Personal Data Protection Act, 2023 introduced obligations on data fiduciaries regarding breach notification and data processing consent.

Connection to this news: The survey finding that 51% of businesses rank cybersecurity as their top risk underscores the growing relevance of India's cyber governance framework, particularly CERT-In's expanding mandate and the compliance burden introduced by the DPDP Act.

Climate Risk and India's Climate Finance Architecture

Climate change as a business risk connects to India's broader climate policy framework. India's updated Nationally Determined Contributions (NDCs) under the Paris Agreement target 50% cumulative electric power installed capacity from non-fossil fuel sources by 2030 and a 45% reduction in emissions intensity of GDP by 2030 over 2005 levels. India has also committed to achieving net-zero emissions by 2070.

  • The National Action Plan on Climate Change (NAPCC), launched in 2008, comprises 8 national missions covering solar energy, energy efficiency, water, sustainable agriculture, Himalayan ecosystems, green India, sustainable habitat, and strategic knowledge.
  • The Reserve Bank of India has introduced climate-related risk disclosure norms for banks and financial institutions, reflecting the mainstreaming of climate risk in financial regulation.
  • India's carbon credit trading scheme, notified under the Energy Conservation (Amendment) Act, 2022, establishes a framework for compliance and voluntary carbon markets.

Connection to this news: The 45% of firms viewing climate change as a critical financial risk reflects the real-world impact of tightening environmental regulations and the growing expectation that businesses internalise climate risk in their financial planning.

Geopolitical Risk and India's Trade Diversification Strategy

Geopolitical instability as a top corporate risk connects to India's evolving trade strategy amid global supply chain reconfigurations. India has pursued trade diversification through bilateral and multilateral agreements, including Free Trade Agreements (FTAs) with Australia (ECTA, 2022), UAE (CEPA, 2022), and ongoing negotiations with the EU and UK.

  • India's Production Linked Incentive (PLI) schemes, covering 14 sectors with an outlay of Rs 1.97 lakh crore, aim to reduce import dependence and build domestic manufacturing capacity in strategic sectors such as semiconductors, electronics, and pharmaceuticals.
  • The Make in India initiative and the National Logistics Policy (2022) are designed to improve India's competitiveness in a geopolitically fragmented global trade environment.
  • India's participation in the Quad, BRICS, and the Indo-Pacific Economic Framework (IPEF) reflects its multi-alignment approach to navigating geopolitical complexity.

Connection to this news: The survey's finding that 64% of leaders cite geopolitical tensions as a material business driver reflects the operational impact of trade realignments, sanctions regimes, and supply chain disruptions that Indian businesses increasingly face.

Key Facts & Data

  • 51% of India Inc ranks cybersecurity breaches as the top risk to organisational performance (FICCI-EY Risk Survey 2026).
  • 68% cite economic slowdown, 67% cite prolonged inflation, and 64% cite geopolitical tensions as material risk drivers.
  • 57% flag data theft and insider fraud as significant risks.
  • 45% of businesses view climate change as a critical financial risk.
  • CERT-In operates under Section 70B of the IT Act, 2000; mandates 6-hour incident reporting since April 2022.
  • India's updated NDC targets: 50% non-fossil fuel power capacity and 45% emissions intensity reduction by 2030; net-zero by 2070.
  • PLI schemes cover 14 sectors with Rs 1.97 lakh crore outlay.