India's Internet Shutdowns and Its Effect On Business
What is the corporate effect of the India’s internet shutdowns?
The Indian government has been shutting down internet services in parts of the country amid protests against the Citizenship Amendment Act (CAA), the National Register of Citizens (NRC), police brutality in JMI India and AMU India together with the suppression of democratic right to dissent. When the internet is not being shut down, it is at least being slowed down (also known as throttling).
According to the state tourism department of Assam, Assam has faced a loss of over ₹400 crore (£43,363,840) due to the protests. The Greater Guwahati Operator Drivers Association announced a loss of ₹5 crore (£5,42,065) in 7 days. Multiple flights and trains in various regions of the country were cancelled. In Haridwar alone, 27 out of 43 trains were cancelled.
The USA and UK have issued a cautionary notice for tourists travelling to India, especially those travelling to Eastern India.
Suspension of internet in India is affecting commercial activities dependent on online transactions and mobile applications, particularly banking, cab services, food delivery and e-commerce sectors. The worst affected, however, are mobile app-dependent cab and bike services like Ola, Uber and Rapido. Many cab drivers and delivery drivers from poor financial background are suffering as they depend on every day income to buy food and pay off loans for the vehicle(s) they are using for their jobs.
In addition to this, small business have been hit hard by the shutdowns. As part of Prime Minister Modi’s digital India campaign, many business owners have switched to e-payment options and customers have become more dependent on e-payment options. Small businesses are either making less profit or customers are returning without making any purchase due to failure of swipe machines and other contactless payment options. Moreover, with a halt on online transactions, people have become more dependent on cash leading to its shortage in ATMs.
Students are also facing difficulties in submitting university applications online. College students are facing problems because of protests and the internet shutdowns. A student, Nausheen Khan, said, "Our college is shut, and exams have been postponed. Access to the internet is very important because it helps us in studies as well."
Tim Draper, a successful billionaire venture capitalist, has expressed concern over the Citizen Amendment Act. Draper said that in choosing one religion over another makes him seriously concerned about his plans to fund business in the country. Draper said that his companies are guiding their invested companies toward free markets and other basic freedoms, such as religion, assembly and speech.
By Swarnim Agrahari