Cybersecurity tops Indian executives’ priorities as threats evolve

As organisations navigate an increasingly complex digital landscape, Indian executives have placed cybersecurity at the forefront of their risk mitigation strategies for the next 12 months. According to PwC’s – 2025 Digital Trust Insights – India Highlights, 61% of respondents rank cybersecurity as their top priority. This is followed by digital and technology risks (60%), inflation (48%), and environmental risks (30%). The report underscores a growing emphasis on bolstering cybersecurity measures, with 93% of executives planning to increase their cybersecurity budgets in the coming year. Notably, 17% intend to raise their budgets by 15% or more, reflecting a 1% uptick from the previous year.

The report highlights the critical need for medium and small enterprises (MSMEs) to embed cybersecurity into their core strategies. Sivarama Krishnan, Partner and Leader, Risk Consulting at PwC India, stresses that cybersecurity has evolved into a strategic imperative for organisations of all sizes. “The digital age presents numerous opportunities, and the risks associated with it do not discriminate based on the size of businesses. Medium and small enterprises must see cybersecurity as a fundamental aspect of their survival and success,” he states.

While large corporations often have the resources to invest in cutting-edge security measures, MSMEs remain particularly vulnerable to cyber threats. This makes it crucial for smaller enterprises to adopt robust cybersecurity frameworks as they digitise their operations.

Among the key findings, cloud-related threats emerged as a dominant concern, with 55% of Indian executives identifying them as their most worrying cyber risk—a 3% increase from the previous year. Despite this, half of security leaders and chief financial officers (CFOs) feel underprepared to tackle these challenges in the year ahead.

In response to evolving threats, Indian companies are prioritising investments in advanced technological defences, particularly in Generative AI (Gen AI). The report reveals that 87% of organisations have increased their spending on Gen AI over the past year. Furthermore, 86% of firms have ramped up investments in AI governance as part of their risk management strategies. Encouragingly, 80% of Indian companies express high confidence in their ability to comply with AI regulations.

Despite significant investments, the impact of cyber incidents remains considerable. According to the report, 8% of Indian security leaders reported data breaches costing over US$ 20 million, a 3% decline from the previous year. However, 44% experienced breaches costing over US$ 500,000 in the past three years. Additionally, more than one-third of leaders noted that their most serious breaches incurred costs of at least US$ 1 million.

A concerning insight from the report is that only 20% of organisations employ thorough risk quantification methodologies. This gap represents an overlooked opportunity to enhance decision-making and prioritise strategic investments. “Developing a dependable cyber risk quantification system is crucial for informed decision-making and prioritising strategic investments,” Krishnan adds.

As the digital ecosystem expands, Indian businesses must strengthen their cybersecurity frameworks to safeguard against evolving threats. From cloud vulnerabilities to the complexities of AI governance, the stakes are high. MSMEs, in particular, need to integrate cybersecurity as a core component of their growth strategies. The findings from PwC’s 2025 Digital Trust Insights – India Highlights offer a roadmap for organisations aiming to navigate these challenges and build resilience in an increasingly interconnected world.