June 6, 2025
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With the increasing digitization of our lives, data privacy has emerged as a critical concern in India. Recognizing this, the Indian government enacted the Digital Personal Data Protection (DPDP) Act, 2023, aimed at providing a structured legal framework to safeguard citizens' digital personal data. This landmark law balances the need for innovation and data-driven growth with the fundamental right to privacy. Let’s dive into what this regulation means for individuals, businesses, and digital service providers.
The Digital Personal Data Protection Act, 2023, is a comprehensive law that governs the processing of personal data in digital form. It applies to both Indian and foreign entities that process data of individuals within India. The law seeks to enforce principles of fairness, accountability, and transparency while laying down strict rules for data handling and user consent.
The Act focuses on personal data that is either collected digitally or converted into digital format after offline collection. It also applies to global businesses operating in India or handling data of Indian citizens. However, it exempts data processed for personal or domestic purposes and anonymized data used for research or statistical analysis.
Under the new law, individuals—referred to as Data Principals—have robust rights. These include the right to access their data, request corrections, demand erasure, and seek grievance redressal. Additionally, individuals can appoint a nominee to manage their data rights in case of incapacity or death, further ensuring control over their personal information.
Entities collecting or processing personal data—termed Data Fiduciaries—must now adhere to lawful processing guidelines. They must issue clear consent notices, collect only essential data, and allow users to withdraw consent easily. They are also responsible for ensuring data security and must notify users in case of breaches.
The Act mandates that all data must be processed only after obtaining clear and informed consent from the user. Consent notices must be multilingual, simple, and easy to understand. Moreover, users should be informed of the purpose of data collection, and any deviation from that purpose requires fresh consent
For users under 18, the Act requires verifiable parental consent. It also prohibits behavior tracking and targeted advertising aimed at children, placing a strong focus on the protection of minors online. This marks a step forward in shielding young users from potential data exploitation.
The DPDP Act allows for cross-border data flows but under regulated conditions. The Indian government will specify countries to which data can be transferred. This aims to ensure that Indian citizens’ data is not compromised when processed outside national boundaries.
One of the most impactful parts of the Act is its stringent penalty structure. Organizations found violating provisions can face fines up to ₹250 crore (~USD 30 million). This not only encourages adherence but also signals the government’s seriousness about data privacy.
To enforce the law, the Data Protection Board of India will be established. This independent authority will oversee complaints, investigate breaches, and ensure compliance. It will also certify entities like Consent Managers who act as intermediaries between individuals and data processors.
India’s DPDP Act, 2023, is a timely response to growing data privacy concerns and brings India in line with global standards like the GDPR. For individuals, it offers greater control over personal data. For businesses, it introduces a clear framework to build trust and transparency. As we navigate this new regulatory environment, one thing is clear: data protection is no longer optional—it’s essential for digital progress in India.
