Internet Shutdowns in Manipur, Punjab: $1.9 bn loss in Indian economy, says report

Recent internet shutdowns in Manipur and Punjab cost the Indian economy an estimated $1.9 billion, a loss of nearly $118 million in foreign investment and nearly 21,268 job losses, a report showed on Thursday.

India's regular use of internet shutdowns as a tool to maintain public order gives India a shutdown risk of 16 per cent so far this year, one of the highest in the world as of 2023, according to the NetLoss calculator, a new tool by non-profit organisation The Internet Society.

Hosted on the Internet Society’s Pulse Platform, the tool measures the economic impact of Internet shutdowns around the world.

Shutdowns are extremely disruptive to economic activity: they halt e-commerce, generate losses in time-sensitive transactions, increase unemployment, interrupt business-customer communications, and create financial and reputational risks for companies.

Manipur violence

Clashes first broke out on May 3 after a 'Tribal Solidarity March' was organised in the hill districts to protest against the Meitei community's demand for Scheduled Tribe (ST) status.

Meiteis account for about 53 per cent of Manipur's population and live mostly in the Imphal Valley. Tribals -- Nagas and Kukis -- constitute another 40 per cent of the population and reside in the hill districts.