- 15-Oct-2025
- public international law
The General Data Protection Regulation (GDPR) is a regulation enacted by the European Union (EU) to protect the personal data of EU citizens and residents. Though it applies primarily to businesses within the EU, it has a significant impact on businesses globally, including Indian companies that handle the data of EU residents. The GDPR imposes stringent requirements on data privacy, consent, data processing, and breach notification, and non-compliance can lead to hefty fines. As more Indian businesses engage in cross-border transactions and handle international customer data, understanding and complying with GDPR is essential to avoid legal consequences.
GDPR applies to all organizations, regardless of location, that process the personal data of EU residents or offer goods and services to them. Indian businesses that cater to EU citizens, collect data through websites, or maintain business relationships with EU clients are subject to GDPR compliance.
GDPR defines personal data as any information that can directly or indirectly identify an individual, such as names, emails, addresses, or IP addresses. Sensitive data includes information like racial or ethnic origin, political opinions, and health-related data. Indian businesses that collect or process sensitive data must ensure additional protection and compliance.
Under GDPR, individuals (data subjects) have specific rights regarding their personal data:
GDPR mandates that businesses obtain explicit consent from individuals before processing their personal data. This consent must be informed, freely given, specific, and unambiguous. For Indian businesses, this means they need to ensure that users understand what data is being collected and how it will be used.
GDPR requires organizations to appoint a Data Protection Officer (DPO) if their core activities involve large-scale processing of sensitive data or systematic monitoring of data subjects. Indian companies dealing with EU residents’ data should consider appointing a DPO or a similar role to oversee data privacy and compliance.
GDPR restricts the transfer of personal data outside the EU to countries that do not offer an adequate level of data protection. India is not currently recognized as a country with adequate protection by the EU. Therefore, Indian businesses must implement mechanisms like Standard Contractual Clauses (SCCs) or rely on the EU-U.S. Privacy Shield framework (if applicable) for cross-border data transfers.
In the event of a data breach, GDPR mandates that businesses notify relevant authorities within 72 hours of becoming aware of the breach. Additionally, affected individuals must be informed if there is a high risk to their rights and freedoms. Indian businesses must ensure they have a breach response plan in place to comply with this requirement.
Non-compliance with GDPR can result in severe penalties, including fines up to €20 million or 4% of global annual turnover, whichever is higher. This can have significant financial and reputational impacts on Indian businesses, especially those with large-scale operations or international clientele.
Indian businesses must conduct a thorough audit of the data they collect, process, and store. This audit will help identify whether they handle personal data of EU residents and what types of data are involved.
Businesses should develop and implement comprehensive data protection policies that outline how data will be collected, stored, processed, and shared. These policies should align with GDPR's principles.
Ensure that the business obtains clear, informed consent from users before collecting their personal data. Consent mechanisms should be easy to understand and use, and individuals should be able to withdraw consent at any time.
Adopt strong data security measures, including encryption, anonymization, and secure storage solutions. Implement access controls and ensure that only authorized personnel can access sensitive data.
Establish a robust data breach notification and response process. Ensure that the organization can detect, respond to, and report breaches in accordance with GDPR timelines.
Consider appointing a Data Protection Officer (DPO) or a similar role to oversee GDPR compliance, manage risk assessments, and coordinate with EU supervisory authorities if required.
Conduct regular training for employees on data privacy laws, GDPR compliance, and best practices for protecting customer data.
EU citizens have strong rights to control their personal data under GDPR. Indian businesses must respect these rights by providing clear processes for users to request access to their data, correct inaccuracies, and delete or transfer their data.
EU residents have the right to report any perceived non-compliance with GDPR to the relevant Data Protection Authority (DPA). Indian businesses need to be aware of the risk of such complaints and take steps to ensure compliance.
Indian businesses should embed privacy and data protection measures into the design of their systems and business processes. This proactive approach reduces the likelihood of violations and builds consumer trust.
An Indian e-commerce company selling products to EU citizens collects personal information such as names, addresses, and payment details from its customers.
Conduct an audit to ensure that all data collection practices comply with GDPR.
Update the website’s data collection forms to include a clear, explicit consent checkbox for users to agree to data processing.
Implement encryption and secure servers to protect sensitive customer data from breaches.
Appoint a Data Protection Officer (DPO) to manage compliance efforts and monitor data privacy practices.
Set up a data breach response team and ensure processes are in place to notify the relevant authorities and customers within the required 72-hour window in case of a breach.
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