By Smitha Shetty, Regional Director – APAC, Achilles Information
In India’s rapidly evolving digital economy, cybersecurity has become a top priority for businesses and government agencies alike. Cyber risks are no longer confined to internal operations—they have permeated supply chains, making it crucial for organisations to address vulnerabilities in their network of third-party vendors, partners, and suppliers. With increasing dependence on interconnected ecosystems, cybersecurity risks are now a critical supply chain management challenge.
While major Indian corporations and government bodies have strengthened their defences, the security vulnerabilities of small- and medium-sized suppliers (particularly in tiers 2 and 3) pose a serious risk. These gaps can be exploited by cybercriminals, threatening not only the business in question but also the larger ecosystem. Cyberattacks on supply chains can disrupt essential services, result in financial loss, tarnish reputations, and even have national security implications.
India’s supply chains are complex, involving a wide range of industries and hundreds of vendors spread across different regions with varying levels of cybersecurity maturity. This interconnectedness increases the potential entry points for cyberattacks. One major reason cybercriminals target supply chains are because of the uneven cybersecurity preparedness across businesses. Many Indian startups, MSMEs, and traditional suppliers may not have robust cybersecurity measures in place. Attackers often infiltrate smaller vendors to gain access to larger companies they supply, bypassing the more secure perimeters of the larger firms.
This risk has been exacerbated by the rapid digital transformation across industries in India. The COVID-19 pandemic accelerated the adoption of digital tools, cloud computing, and remote working. While these advancements have brought efficiency, they’ve also widened the attack surface, making organisations more vulnerable to cyberattacks. Geopolitical tensions and India’s rising prominence as a global technology hub have also increased the threat from state-sponsored actors and international cybercriminals.
The consequences of a cyberattack on India’s supply chains can be wide-ranging, affecting everything from economic stability to public services. Consider the example of India’s healthcare sector, where breaches in the supply chain could expose sensitive patient data, delay critical medical treatments, and disrupt access to life-saving supplies. Similarly, attacks on the energy, logistics, and defence sectors could have far-reaching national security implications.
Given the rising threat landscape, organisations in India must adopt a holistic and multi-layered approach to supply chain cybersecurity.
Below are key strategies to consider:
1. Thorough vendor assessments: Before engaging with any supplier, it’s essential to evaluate their cybersecurity practices. Many Indian businesses, particularly SMEs, need help to meet basic security standards. Through security audits, questionnaires, or third-party certifications, larger organisations can ensure their vendors adhere to minimum cybersecurity protocols.
2. Continuous monitoring: Cyber threats are constantly evolving, and businesses need to monitor their supply chains in real-time. Local cybersecurity platforms can provide visibility into the cyber posture of suppliers, allowing organisations to respond to threats swiftly and minimise damage.
3. Regular security audits and vulnerability assessments: Conduct regular audits not just for your own systems but also for your key suppliers. In India, where the supply chain often involves multiple vendors with varying security practices, conducting periodic assessments can help identify potential weak links.
4. Strong contractual Obligations: Indian organisations must include clear cybersecurity requirements in contracts with suppliers. This includes adherence to industry standards, incident reporting, and regular security updates.
5. Prioritise critical vendors: Not all suppliers are equally important. Focus your efforts on securing vendors who have access to sensitive data or critical systems, such as cloud service providers, logistics partners, or manufacturers of essential goods.
6. Basic cyber hygiene: Even with limited resources, Indian MSMEs can enhance their security posture by adopting basic practices such as regular software updates, employee training on cybersecurity, and enforcing strong password policies.
India is rapidly becoming a digital-first economy, and with that growth comes new vulnerabilities. As supply chain cyberattacks become more frequent and sophisticated, it is imperative for Indian businesses to take a proactive approach to cybersecurity. Securing your internal systems is no longer sufficient—it’s vital to ensure that every participant in your supply chain adheres to rigorous security standards. From thorough vendor assessments to continuous monitoring, businesses in India must prioritise the resilience of their supply chains in this ever-evolving digital age. By building a secure, resilient supply chain, Indian organisations can not only protect themselves but also contribute to the overall security of the nation’s digital infrastructure.