Global Risks 2026: Cybersecurity Emerges as India's Primary Threat

The World Economic Forum's latest Global Risks Report has identified cybersecurity as India's most pressing concern for 2026, reflecting the nation's increasing reliance on digital infrastructure across governance and financial systems.

Geoeconomic Tensions Lead Global Risk Assessment

The 21st edition of the WEF Global Risks Report, based on responses from 1,300 business leaders, academics and civil society figures worldwide, places geoeconomic confrontations, including sanctions and tariffs, as the foremost global risk for 2026.

"Rules and institutions that have long underpinned stability are under siege in a new era in which trade, finance and technology are wielded as weapons of influence," the report warns.

Eighteen per cent of respondents identified such geoeconomic confrontations as their primary concern, with state-based armed conflicts ranking second at 14 per cent. The ongoing conflict in Ukraine exemplifies this category of risk.

Australia's Regional Security Implications

The report's findings carry particular significance for Australia's strategic positioning in the Indo-Pacific region. Recent developments, including the United States' implementation of widespread tariffs under the current administration, have created tensions among traditional trading partners including India, China, Japan, Germany and Brazil.

WEF Managing Director Saadia Zahidi noted that nearly one-third of respondents expressed serious concerns about the implications for the global economy and international stability.

India's Digital Vulnerability

For India specifically, the report highlights cybersecurity risks stemming from the country's rapid digital transformation. While acknowledging India's Unified Payments Interface as a successful example of digital governance innovation, the analysis points to potential vulnerabilities in critical infrastructure.

The assessment also identifies wealth inequality and inadequate social safety nets as significant domestic challenges for India, alongside risks from potential economic slowdowns and external shocks that could impact the nation's stability.

Regional Water Security Concerns

The report draws attention to water security as an emerging flashpoint, specifically mentioning the Indus River Basin dispute between India and Pakistan. This concern has gained renewed relevance following India's suspension of the Indus Waters Treaty after recent security incidents.

Climate Risks Persist Long-term

While immediate concerns focus on geopolitical and economic tensions, the report maintains that climate-related risks remain the most significant long-term threat. Extreme weather events, biodiversity loss and critical changes to Earth systems top the decade-long risk assessment.

"Unlike in the two-year outlook, where these have declined in rankings, the existential nature of environmental risks means they remain as the top priorities over the next decade," the report states.

Business and Policy Implications

The findings suggest a challenging period ahead, with approximately half of respondents anticipating "turbulent" or "stormy" conditions over the next two years, representing a 14-point increase from the previous survey.

For the longer term, 57 per cent of respondents expect "prolonged instability" over the coming decade, highlighting the need for robust risk management strategies across both public and private sectors.

The report's emphasis on "poly-crises" rather than singular global challenges underscores the complex, interconnected nature of contemporary risks facing governments and businesses worldwide.