India's Data Breach Costs Soar to Record High Amid AI-Driven Cyber Threats

The average cost of a data breach in India has reached a record high of Rs 25.5 crore (approximately $3.2 million USD) in 2026, according to IBM's latest report.

This represents a 15.9% increase from the previous year's average of Rs 22 crore, with nearly 39,500 records compromised per incident in 2026 compared to 38,200 records in 2025.

Gaurav Agarwal, Vice President of Technology at IBM India & South Asia, noted that 'India's accelerating AI adoption is creating immense opportunities for innovation, but it is also enabling cyber threats to evolve rapidly.'

The report found that only 32% of organizations in India have extensively deployed AI and security automation, while 36% reported limited adoption and 32% reported no adoption at all.