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Nearly all Indian firms face cyber threats; internal barriers hinder response

A new report reveals that 96% of Indian companies experienced cyber incidents over the past year, with organisational inefficiencies proving as damaging as external threats. Internal silos, bureaucratic delays and fragmented data systems are significantly undermining cybersecurity resilience across the sector.

LSN India · 30 September 2026

India's corporate sector faces a mounting cybersecurity challenge, with nearly all major organisations reporting cyber incidents within the past 12 months, according to a comprehensive industry report. The findings underscore not only the growing sophistication of external threats but also critical vulnerabilities rooted in how companies manage their internal operations.

While cyber attacks themselves represent an obvious concern, the research identifies a more insidious problem: organisational structures that impede effective security responses. Internal friction—manifested through bureaucratic approval bottlenecks, data fragmentation across departments, and disconnected teams—creates blind spots that attackers can exploit and slows incident response capabilities.

These structural weaknesses appear to pose comparable risks to external threats. Companies operating in silos struggle to maintain unified threat visibility and coordinated defence strategies. Delayed approvals for security initiatives and fragmented information systems mean that vulnerabilities persist longer than necessary, increasing exposure windows for potential breaches.

The report suggests that Indian firms must prioritise organisational alignment alongside technical defences. Breaking down departmental barriers, streamlining decision-making processes, and integrating data systems could substantially improve the speed and effectiveness of cybersecurity operations. For many organisations, addressing these internal impediments may prove as critical as upgrading external security infrastructure.