Data privacy has never really been just a Western concern. With the rise of global data regulations, India has stepped up to the data privacy regulation plate with its Digital Personal Data Protection (DPDP) Act, passed in 2023. Designed to protect personal data and regulate its processing, the DPDP Act aligns with global privacy laws like the EU’s General Data Protection Regulation (GDPR), yet has its own unique set of rules and requirements.
If your organization handles the personal data of Indian citizens, you need to be prepared.
Let’s break down what the DPDP Act is all about and explain how Concentric AI can help you stay compliant.
What is the DPDP Act?
The DPDP Act is India’s answer to mushrooming concerns over data privacy and security. It applies to organizations that collect, store, or process personal data of individuals in India, regardless of where the company is based. The law introduces clear guidelines on data processing, user consent, and penalties for non-compliance.
Here are the key highlights you need to know about:
Explicit consent
Organizations must get clear, affirmative consent from individuals before processing their data. This means that pre-checked boxes or implied permissions won’t suffice—users must actively agree to data collection.
Data fiduciary responsibilities
Entities handling personal data are required to implement robust security measures, restrict access based on necessity, and maintain accountability for data protection. In some cases, they must also appoint a Data Protection Officer (DPO).
Right to access and erasure
Individuals have the right to know what data an organization holds about them. They can request corrections, updates, or even deletion of their data, which essentially gives them the power to maintain control over their personal information.
Cross-border data transfer
The government has the authority to regulate the transfer of personal data outside India to make sure that Indian citizens’ data is not exploited or mishandled in jurisdictions with weaker privacy laws.
Strict penalties
Non-compliance can result in hefty fines, reaching up to INR 250 crore ($30 million USD). For businesses, mishandling data, failing to obtain proper consent, or violating data security protocols may also mean big financial and reputational damages.
How does the DPDP Act compare to GDPR?
At first glance, it may seem there are major similarities between the DPDP Act and GDPR, as they both emphasize consent, data rights, and security. But there are differences, which reflect regional approaches to data protection and the specific needs of each jurisdiction.
Understanding these distinctions is important for organizations operating within multiple regulatory frameworks.
Scope of applicability
GDPR applies broadly to any organization handling EU citizens’ data, while DPDP is specific to Indian residents.
Data localization
Unlike GDPR, which allows free movement of data across the EU, DPDP includes restrictions on transferring sensitive personal data outside India.
Breach reporting
GDPR mandates strict and specific breach notification timelines, whereas DPDP’s reporting requirements are still evolving.
Why DPDP compliance matters
Ignoring the DPDP Act (or pretending you don’t know it exists) isn’t an option. With India’s skyrocketing digital economy, businesses that fail to comply risk legal penalties, reputational damage, and loss of consumer trust. But achieving compliance doesn’t have to be a headache.
A well-structured data protection strategy can provide organizations with a competitive advantage. By demonstrating a commitment to data privacy, businesses can build stronger relationships with customers and stakeholders.
Proactive compliance also minimizes the risk of security breaches, ensuring long-term operational stability.
How Concentric AI can help
Navigating data privacy regulations can feel overwhelming, but Concentric AI makes it easier.
Our AI-driven Data Security Governance solution helps businesses:
Discover and classify data: Identify personal and sensitive data across structured and unstructured environments.
Monitor data access and sharing: Detect risky permissions, overexposed data, and unauthorized sharing.
Automate compliance monitoring: Ensure your data practices align with the DPDP Act’s requirements. Our industry-exclusive Compliance dashboardgives you out-of-the-box monitoring and reporting for popular regulations and frameworks including GDPR, HIPAA, NIST, PCI, HITRUST, ISO 27001, SOC 2, GLBA, SOX, GDPR, CCPA, and others. We’re adding new compliance monitoring and reporting all the time and should have DPDP specific functionality soon.
Mitigate risks: Get real-time insights to prevent data breaches and unauthorized access.
India’s DPDP Act is a major step toward stronger data privacy and protection. With Concentric AI’s intelligent data security solutions, you can stay ahead of compliance challenges and keep your data protected.
Want to see how we can help? Get in touch with us today and book a demo!