Safeguarding personal information is now a legal and moral requirement in a time when data is frequently referred to as the new oil. With the Digital Personal Data Protection Act, 2023 (DPDPA), India, which has one of the world's fastest-growing digital economies, has responded. This important law sets the stage for protecting personal data, making data processors more accountable, and giving people more power. It makes India more like global standards like the EU's GDPR and sets up a complete system to make sure responsible data governance. In this article you will know about the data privacy laws in India.
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Scope and Applicability of Digital Personal Data Protection Act, 2023
The data privacy law in India is DPDPA, 2023 which applies to:
Digital personal data is collected online or digitized after being collected offline.
Processing within India, or outside India if it involves offering goods or services to individuals in India.
Data Fiduciaries and Data Processors, which include government bodies, companies, and startups that collect, store, or use personal data.
Importantly, exemptions exist for data processed for personal or domestic purposes, research, statistical purposes, and certain government functions related to national security and law enforcement.
Key Principles OF Data Privacy Laws in India
The DPDPA is based on seven foundational principles:
Lawful and Fair Processing: Data must be processed for lawful purposes with fairness to the data principal (individual).
Purpose Limitation: Data must only be used for the specific purpose it was collected.
Data Minimization: Only data that is necessary for the intended purpose should be collected.
Accuracy: Reasonable efforts must be made to ensure data is accurate and up to date.
Storage Limitation: Data should not be retained longer than necessary.
Security Safeguards: Reasonable measures must be taken to prevent unauthorized access or misuse.
Accountability: The Data Fiduciary is responsible for complying with the law and demonstrating such compliance.
Individual Rights
The DPDPA grants the following rights to individuals (referred to as Data Principals):
Right to Access Information: Know what data is being processed and for what purpose.
Right to Correction and Erasure: Request correction of inaccurate data and deletion of data no longer necessary.
Right to Grievance Redressal: Lodge complaints with the Data Fiduciary and escalate unresolved issues to the Data Protection Board of India.
Right to Nominate: Appoint a nominee to exercise rights in case of death or incapacity.
These rights empower individuals to control how their data is collected, used, and shared, ensuring transparency and autonomy.
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Key Obligations for Data Fiduciaries
Entities processing personal data known as Data Fiduciaries must adhere to strict obligations including
1. Consent Management
Consent must be
Free, informed, specific and unambiguous.
Provided through clear affirmative action.
Withdrawable at any time.
2. Notice Requirements
Data Fiduciaries must notify individuals at the time of data collection, specifying:
The purpose of data processing,
Rights of the data principal, and
Details of grievance redressal mechanisms.
3. Grievance Handling
Every Data Fiduciary must establish a mechanism for addressing user complaints efficiently and transparently.
4. Children’s Data
Parental consent is mandatory for processing data of individuals under 18. Targeted advertising or tracking of children is prohibited.
5. Significant Data Fiduciaries
Entities processing large volumes of sensitive personal data may be designated as Significant Data Fiduciaries. They must:
Appoint a Data Protection Officer (DPO),
Conduct Data Protection Impact Assessments (DPIAs), and
Maintain detailed records of data processing.
Enforcement Mechanism
The Data Protection Board of India is the primary regulatory body responsible for:
Investigating complaints
Imposing penalties
Issuing directives to ensure compliance.
Penalties for Non-Compliance
Up to ₹250 crore for failing to prevent data breaches,
₹200 crore for violating children’s data provisions,
₹50 crore for failing to provide grievance redressal mechanisms.
The Board has powers that are comparable to those of a civil court, ensuring a robust enforcement system that can effectively settle disputes and penalize violators fairly.
Relation with Other Laws
The DPDPA does not operate in isolation. It coexists and interacts with multiple other Indian laws including
Information Technology Act, 2000 (IT Act): Prior to DPDPA, data privacy was governed under Section 43A and IT Rules, 2011, which continue to apply for non-personal data or in specific cases.
Right to Information Act, 2005: The DPDPA protects personal data from being disclosed under RTI unless larger public interest demands it.
Consumer Protection Act, 2019: Obligates e-commerce platforms to ensure consumer data privacy.
Sectoral Laws: RBI and SEBI regulations may mandate stricter data protection in financial services.
The DPDPA overrides any inconsistent provisions but allows coexistence with sectoral regulations where they are more stringent.
Information Technology Act, 2000 (IT Act) as a Data Privacy Law
Before the enactment of the Digital Personal Data Protection Act of 2023, the Information Technology Act, 2000 (IT Act) served as India’s primary legislation governing data privacy and cybersecurity. It formed the part of data privacy laws in India. Although not a dedicated data protection law it included key provisions aimed at safeguarding personal information in the digital space.
Section 43A of the IT Act obligates companies and intermediaries to implement “reasonable security practices” to protect sensitive personal data. If a company is negligent in maintaining data security and causes wrongful loss or gain, it can be held liable to compensate the affected individual.
Additionally, the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011 were framed under this section. These rules define what constitutes sensitive personal data (e.g., passwords, financial data, health conditions) and outline obligations such as obtaining consent, providing privacy policies, and offering access and correction rights.
Though foundational, the IT Act lacked comprehensive provisions for user rights, data breach notifications, and enforcement mechanisms. It focused more on data security than individual privacy. Nonetheless it laid critical groundwork for India’s evolving data protection regime and continues to apply to non-personal data or where sectoral rules refer to it.
Summary
India’s Digital Personal Data Protection Act, 2023 represents a significant step toward building a rights-based, accountable and secure data ecosystem. By placing individuals at the center of the data protection framework and holding organizations to high standards of transparency and responsibility, India aligns itself with global best practices.
As digital adoption deepens and data-driven technologies proliferate, the successful implementation of DPDPA will depend on widespread awareness, capable Data Protection Officers, vigilant enforcement and robust governance. For citizens, it’s a reclaiming of digital dignity. For organizations it’s both a challenge and an opportunity to build trust in a data-first economy.
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Data Privacy Laws in India: FAQs
Q1. Who enforces the DPDPA?
The Data Protection Board of India oversees compliance, investigates complaints, and issues penalties or directives.
Q2. What are the penalties for violating the DPDPA?
Penalties include ₹250 crore for data breaches, ₹200 crore for mishandling children's data, and ₹50 crore for grievance redressal failures.
Q3. How does DPDPA interact with other Indian laws?
It coexists with the IT Act, RTI Act, Consumer Protection Act, and sectoral regulations by RBI, SEBI, etc., where stricter rules may apply.
Q4. How does the DPDPA compare with GDPR?
DPDPA aligns closely with GDPR in principles, individual rights, consent management, and accountability, though enforcement structures differ.
Q5. Does the IT Act still apply after DPDPA?
Yes, especially for non-personal data and where sectoral laws or IT Rules, 2011 are referenced, such as in cybersecurity and intermediary obligations.
Q6. What is corporate data privacy policy?
A corporate data privacy policy outlines how a company collects, uses, stores, and protects personal data, ensuring compliance with laws like India’s Digital Personal Data Protection Act, 2023, and safeguarding stakeholder information against unauthorized access or misuse.
