What Business Leaders Must Know About India’s DPDPA

With India’s digital space growing super-fast, because of this, the new rules are being introduced to the organization and also to protect the people’s personal data that is being surfed on the internet. One of the big rules is the Digital Personal Data Protection Act (DPDPA).

Consider this as a law that ensures the companies can handle the people’s personal data securely and fairly. This blog provides clear insights on its essentials and also assesses its implications as well as outlines the strategic ways that helps the business to adopt this.

The Digital Personal Data Protection Act 2023 was introduced in August 2023 making it India’s first dedicated data protection act. It primarily applies to digital personal data or any personal data which is in electronic form.

This applies to organisations that process personal data outside of India as well. For example, offering goods or services to Indian citizens.

The three main areas of this law:

• Data Fiduciary obligations: Organizations must use the people’s or citizen’s data only if it has defined a proper purpose of why it is being used and also it should be used only for fair purposes.
• Data Principal Rights: People can access their data and can fix if there are any mistakes and also can ask for it to be deleted, and can even complain if their data is being misused.
• Data Protection Board of India: This board is an authority that checks and make sures if rules are being followed and also solves the dispute and gives penalties if any organization breaks the law.

In January 2025, the Indian ministry has released the IT draft rules to show how the new data protection law (DPDPA) will work in real life:

• Transparency & Consent: Data Fiduciaries must use proper security and tell people what data exactly have been collected by them.
• Breach Reporting: If any organisation suffers or gets affected from any type of data breach, then they must immediately inform the governments and the affected people as soon as possible.
• Security Standards: Companies must need to have proper security especially by having some data retention policies and deletion protocols.
• Cross Border data transfers: The data transfers to abroad are only allowed under certain conditions set by the government that is like having a contractual safeguard.
• Significant Data Fiduciary (SDF) requirements: The large size and high-risk organisations must have to do extra security things like annual audits, privacy checks and other risk assessments as well.

• Elevated Compliance Stakes: The penalties according to the DPDPA are so significant that roughly ranging from INR 10,000 to INR 250 CR, mainly depends on the breach. Non-compliance not only results in financial losses, but also for reputational damage.
• Global Impact and Liability Exposure: The DPDPA applies to all sorts of companies regardless of their location across the globe, if they deal with the Indian users personal data. For instance, if a U.S or UK company is processing any Indian customer personal data then they must follow the law.
• Strategic Imperatives for Business Leaders: The Business Leaders must:
• Stay connected with the legal compliance, IT and privacy related teams to integrate the privacy into the governance, so that this will become part of how the company works.
• Privacy as a business risk should be elevated, not only just for legal compliance that focuses on reputation, system resilience and stakeholder confidence.

The DPDPA isn’t just another rule to tick off a compliance checklist. For smart and forward-looking leaders, it’s an opening and a chance to rethink how the business treats data. By placing privacy at the center of strategy, companies can do more than meet legal requirements. They can build deeper trust with customers, stand out in competitive markets, and reduce risks that could otherwise come back as costly problems.

It’s also worth remembering that India’s law is part of a bigger global movement. Around the world, governments are tightening the way organizations collect and protect data. Businesses that adapt early don’t just avoid penalties; they also make themselves more attractive to partners, investors, and international customers.

At the end of the day, data protection is no longer just an IT or compliance issue, but it’s a boardroom priority. When leaders champion privacy, they send a clear message: protecting people’s data is protecting the business itself. Compliance becomes more than an obligation; it becomes a powerful way to earn trust and turn security into a long-term advantage.

In order to prepare for the DPDPA, business leaders mainly focus on the below action areas:

• Regulatory Awareness: India’s DPDA is a landmark in India’s data governance journey. As it is India’s big step in data privacy, it is better to have an update so that you don’t miss any new requirements.
• Proactive Compliance: Implementing the various privacy frameworks from now on will save a lot of time and risks, and it is also recommended to not wait until the law is fully enforced.
• Transparency & Accountability: It is very much important to emphasize on the clarity of how the data is being collected, processed and retained. This will help an organization by making it more trustworthy.

Getting DPDPA compliance right isn’t just about ticking boxes, it’s about understanding how the law applies to your specific business and putting practical systems in place. That’s where Azpirantz can really make a difference.

Our team works closely with organizations to simplify complex privacy requirements and build solutions that actually work in real-world scenarios. From setting up consent flows to preparing for audits, we help you stay compliant without slowing down your operations.

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*This content has been created and published by the Azpirantz Marketing Team and should not be considered a professional advice. For expert consulting and professional advice, please reach out to [email protected].