As more Indian firms integrate the Internet of Things (IoT), smart sensors, mobility solutions, connected devices, and robots on their shop floors, they become increasingly vulnerable to sophisticated cyber-attacks. Such attacks can result in financial losses, operational disruptions, and physical damage to systems.
A recent report from cybersecurity firm Fortinet revealed that over half (55%) of smart manufacturing firms in India experienced more than six intrusions last year, a significant increase from 11% the previous year. This surge is attributed to the integration of operational technology (OT) and information technology (IT) networks, which has become a major concern for executives.
OT systems, which manage industrial processes and equipment, traditionally interacted with machines and devices on factory floors. In contrast, IT networks handle big data, machine learning, machine-to-machine (M2M) communication, and IoT (sensors). According to Santosh Jinugu, a cybersecurity expert and Partner at Deloitte India, the merging of OT and IT is driven by the desire to leverage emerging technologies in smart factories. However, this integration also introduces significant cybersecurity risks if not managed properly. Ransomware, malware, intellectual property theft, third-party security breaches, increasing sophistication of threats, and human errors are all critical concerns for manufacturing companies.
Vishak Raman, Vice President of Sales for India, SAARC, SEA, and ANZ at Fortinet, noted that as cyber threats become more sophisticated, many organizations still have significant blind spots in their security environments. According to the report, seven out of ten CIOs/CTOs reported experiencing ransomware or wiper intrusions this year, nearly double the number from 2023, highlighting the need for better network visibility and detection capabilities.
Another report from cybersecurity firm Palo Alto Networks, published earlier this week, emphasized the challenges faced by technology leaders in the OT environment. It found that 75% of CIOs in manufacturing reported at least one cyber-attack in the past year, with 63% experiencing attacks monthly or weekly. Anil Valluri, MD and VP of Palo Alto Networks India and SAARC, stressed that cyber-attacks can shut down Indian OT operations, with a quarter of Indian industrial entities forced to halt operations due to successful intrusions.
One major factor contributing to poor security among Indian firms is the continued use of outdated platforms, which provide ample opportunities for attacks. Another vulnerability arises from supply chain partners, as demonstrated by a CIO’s account of a phishing attack that nearly caused significant financial loss. To mitigate these risks, manufacturing organizations must implement vulnerability assessments and invest in comprehensive cybersecurity management programs that cover both IT and OT networks.
Jinugu highlighted the importance of developing a structured and strategic approach to cybersecurity in smart factories. This includes conducting in-depth security assessments, implementing 24×7 monitoring through robust IT-OT security operations centers, establishing incident response and cyber crisis management plans, raising awareness and training OT specialists, and regularly testing the resilience of OT environments.
Governments in India and around the world are increasingly recognizing the importance of OT security. Partnerships in this field are crucial, with companies like Honeywell, Rockwell Automation, and Schneider collaborating with industry ecosystems to develop new technologies and enhance security capabilities to address the growing cybersecurity threats facing smart factories.
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