- 15-Oct-2025
- public international law
The Digital Personal Data Protection Act, 2023 (DPDPA) is a landmark legislation introduced in India to regulate the collection, processing, and storage of personal data. This Act was passed to ensure the protection of individuals' personal data while balancing the needs of businesses and the government. With increasing digital transactions, online interactions, and data breaches, the law aims to enhance privacy and establish a comprehensive framework for data protection in India, aligning with global standards like the General Data Protection Regulation (GDPR) in the European Union.
The DPDPA applies to all entities—private, public, or government—that collect, store, or process personal data in India. It also governs the processing of personal data by entities outside India if the data is related to individuals in India. This ensures that global companies operating in India are also subject to the country’s data protection rules.
The Act defines personal data as any information that can identify an individual, including names, addresses, contact details, and biometric data. Sensitive personal data includes data related to health, financial information, sexual orientation, or political opinions, which require higher levels of protection.
One of the most critical aspects of the DPDPA is the requirement for explicit consent from individuals before their personal data can be collected or processed. The data subject must be informed about the purpose of data processing and have the right to withdraw consent at any time.
The Act provides individuals with several rights to ensure control over their personal data:
The Data Fiduciary is the entity that determines the purpose and means of processing personal data, while a Data Processor is a third-party entity that processes data on behalf of the Data Fiduciary. Both parties are responsible for adhering to the provisions of the Act, and their obligations are clearly outlined to ensure accountability and transparency.
Organizations are required to conduct a Data Protection Impact Assessment (DPIA) when initiating new projects or systems that may affect the privacy of individuals. This assessment helps identify potential privacy risks and implement safeguards.
The Act includes provisions around data localization, which require that certain critical personal data be stored within India. While general personal data can be transferred abroad, the storage and processing of sensitive personal data may be restricted to ensure greater control over the data.
In the event of a data breach, the data fiduciary is required to notify the relevant regulatory authority within 72 hours and inform the affected individuals if the breach poses a risk to their rights and freedoms.
The Data Protection Board of India (DPB) is established to oversee the implementation and compliance with the Act. The Board is responsible for investigating complaints, issuing penalties for non-compliance, and ensuring data subjects’ rights are respected.
The Act imposes strict penalties for non-compliance. Organizations that fail to comply with the Act may face substantial fines, including:
The Act allows for cross-border data transfer of personal data to certain countries, provided those countries meet specific data protection standards. The regulatory authority evaluates and determines these countries' adequacy for protecting data.
The DPDPA has significant implications for businesses that handle personal data. Organizations must revise their data processing activities to ensure compliance, implement data protection practices, and potentially restructure their data governance frameworks. This also includes:
The DPDPA empowers consumers by giving them greater control over their personal data. It provides a clear framework for data rights, such as access, correction, and erasure, which enhances individuals' ability to manage their privacy in the digital world.
The DPDPA brings India's data protection framework closer to global standards, such as the GDPR. This is crucial for companies operating internationally as it aligns India with international best practices in data privacy and strengthens India's position in the global digital economy.
An online e-commerce platform collects personal data from its customers to process orders. Under the Digital Personal Data Protection Act, 2023, the platform must ensure that:
If the platform fails to comply with these requirements, it may face hefty fines and legal action.
The Digital Personal Data Protection Act, 2023 is a comprehensive legal framework that aims to protect the privacy of individuals and regulate the processing of personal data in India. By aligning with international data protection standards, the Act ensures that individuals' personal data is handled responsibly and transparently, while also holding businesses accountable for their data practices.
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