Digital Personal Data Protection (DPDP) Act
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What is DPDP ?
Introduction: The Compliance Wake-Up Call
Your customers demand trust and regulators demand compliance. India’s DPDP 2023 makes data protection mandatory, giving businesses clear rules collecting, processing and securing personal data, with ₹250 crore fines for getting it wrong. Are you ready?
What is the DPDP Act?
DPDP refers to India’s Digital Personal Data Protection Act (DPDP), 2023, regulating digital personal data processing. It was enacted in the year 2023, providing rights for individuals and obligations for data fiduciaries (entities processing data) with DPDP rules 2025 to implement it through phased enforcement.
The Cyber Crisis That Forced Change
In India, there were 265 million cyberattacks, with an estimated 8,500 data breaches and identity theft cases exposed how vulnerable personal data became in a rapidly digitalising economy. This increase in cyber risk highlighted that current security practices were no longer enough. DPDP emerged as a direct response to this vulnerability.
Why DPDP Was Inevitable ?
Escalating cyber attacks set the stage for this act, providing a legal framework to contain the damage, restore trust, and impose structure on India’s digital ecosystem.
DPDP Act 2023: Industry Applicability & Scope
| Who It Applies To | Key Industries | Regulatory Scope | Aligned Standards |
|---|---|---|---|
| Businesses processing digital personal data in India | Fintech, E-commerce | Consent management, purpose limitation | ISO 27701 (Privacy), ISO 27001 (ISMS) |
| Foreign entities targeting Indian users | Healthcare, IT/BPO | Data subject rights (access, erasure) | ISO 27701, HIPAA (health), GDPR toolkit |
| Data fiduciaries (any size) | Telecom, EdTech | 72-hr breach notification, security audits | ISO 27001, ISO 22301 (BCMS) |
| Significant Data Fiduciaries (SDFs) | Gaming, SaaS | DPO appointment, DPIA requirements | ISO 27701, SOC 2 (trust services) |
FAQs: India’s Digital Economy Vision and the DPDP Act
The DPDP Act is India’s first data protection law designed to regulate how organisations collect, store, process, and use personal data. It gives individuals control over their information while holding businesses accountable for secure and lawful data handling.
India enacted the DPDP law owing to repeated data breaches and the Supreme Court's declaration that privacy is a fundamental right. Hence, the act becomes a mandatory requirement for organisations that collect, store, and process clients’ data.
The Digital Personal Data Protection Act enables companies to collect data while restricting its use for the defined purposes. As a result, any non-compliance can result in penalties and reputational damage.
The DPDP Act gives individuals the right to know how their data is used. As a result, it strengthens transparency and control over personal information.
A comprehensive data protection framework fosters global trust and facilitates international partnerships. It encourages responsible innovation, as, without secure data governance, an economy cannot sustain long-term growth.