India's Factory Boom Comes with a Growing Cyber Bill

New Delhi, India Jul 4, 2026 ALN: Recent cyber incidents at two major Indian manufacturers have renewed concerns over the growing vulnerability of the country's factory floors as companies embrace automation, connected operations, and artificial intelligence. The shift towards more digitized manufacturing practices has been a hallmark of India's strategy, particularly as the nation seeks to enhance its manufacturing capabilities and attract foreign investment. However, this transition comes with significant cybersecurity risks that need to be addressed promptly.

On June 23, Bajaj Auto and one of its subsidiaries reported a ransomware attack that disrupted parts of their IT systems. A day earlier, Tata Electronics disclosed a cyber breach. Both companies stated they had activated incident response mechanisms and taken measures to contain the attacks. These incidents highlight the urgency for manufacturers to reassess their cybersecurity frameworks as they adopt more interconnected technologies to streamline operations.

The incidents underscore how cybersecurity is increasingly becoming a boardroom issue rather than merely an IT concern. Traditionally, cybersecurity was viewed as a technical problem relegated to IT departments. However, as manufacturers digitize operations and deploy connected technologies across plants and supply chains, the implications of cyber threats extend far beyond technical disruptions. Senior executives and board members are now recognizing that cybersecurity is integral to business continuity, reputation management, and overall organizational resilience.

Cybersecurity experts have noted that the manufacturing sector continues to be among the most heavily targeted industries globally. According to Kaspersky's Industrial Control Systems (ICS) Threat Landscape report for the first quarter of 2026, manufacturing was the only major industry to record an increase in the share of attacked industrial control systems worldwide. Southeast Asia emerged as the region witnessing the highest level of such attacks. This trend is alarming, particularly for India as it positions itself as a global manufacturing hub.

Vikash Yadav, head of enterprise for India at Kaspersky, stated, "Threat actors are increasingly targeting internet-facing operational technology at remote sites. As factories become more connected, they present a larger attack surface for ransomware groups, advanced persistent threat actors, and supply-chain attackers exploiting smaller vendors." This observation is critical, as it highlights the need for manufacturers to understand the evolving threat landscape and the specific vulnerabilities that arise from increased connectivity.

The Indian Computer Emergency Response Team (CERT-In) has called on organizations to bolster cybersecurity measures, including vulnerability management, network segmentation, multi-factor authentication, and continuous monitoring. These recommendations are particularly pertinent as advances in AI make cyberattacks more sophisticated and difficult to detect. The integration of AI into manufacturing processes has the potential to enhance productivity and efficiency, but it also introduces new vulnerabilities that must be managed effectively.

Industry executives have indicated that many manufacturing facilities still operate with legacy systems that were never built with cybersecurity in mind. Debashish Roy, chief digital and technology officer at CEAT, emphasized the need for stronger separation between IT and operational technology networks while using AI at the edge to ensure that innovation does not come at the cost of security. This separation is crucial as it minimizes the risk of cyber threats propagating from less secure IT environments to critical operational systems.

The risks extend beyond operational disruptions and financial losses. Although Tata Electronics and Bajaj Auto reported that their operations were not affected, it was alleged that the breach at Tata Electronics' Hosur plant exposed confidential information related to Apple and Tesla, including component details and images of unreleased Apple products. Such breaches not only compromise sensitive data but also threaten the intellectual property that is vital for maintaining competitive advantages in the global market.

Experts warned that such incidents could have wider implications for India's ambitions to position itself as an alternative global manufacturing hub under the China-plus-one strategy. This strategy aims to diversify supply chains and reduce dependence on China, but it requires a robust cybersecurity posture to instill confidence among international partners. Srinivas L, joint CEO of 63SATS Cybertech, stated that protecting intellectual property would be as important as expanding manufacturing capacity if India wants to attract global companies. The perception of India as a secure and reliable manufacturing destination is critical in this context.

"If India acquires a reputation for IP leaks, it could erode the trust that underpins the China-plus-one opportunity," he said, adding that sector-specific cybersecurity guidelines and stronger incident reporting through CERT-In would improve resilience. This sentiment reflects a broader recognition that cybersecurity is not just a technical issue but a strategic imperative for growth and international competitiveness.

In conclusion, as India's manufacturing sector continues to grow, the need for robust cybersecurity measures becomes increasingly critical. The recent cyberattacks serve as a wake-up call for manufacturers to prioritize security in their operations to safeguard sensitive data and maintain trust in the global market. As the country seeks to enhance its manufacturing capabilities, it must also invest in cybersecurity infrastructure and training to ensure that it can protect itself against the evolving threats in the digital landscape.

Furthermore, collaboration across the industry, government, and cybersecurity experts will be essential in developing comprehensive strategies that address the unique challenges faced by the manufacturing sector. By fostering a culture of security awareness and proactive risk management, India can position itself as a leader in secure manufacturing and attract the foreign investments necessary for its growth ambitions.

Ultimately, the intersection of manufacturing and cybersecurity will define the future of India's landscape. As the country continues its journey towards becoming a global manufacturing powerhouse, it must remain vigilant and proactive in addressing the cybersecurity challenges that accompany this transformation.