Abstract
The Digital Personal Data Protection Act, 2023 (DPDP Act) represents a significant milestone in India’s data governance landscape, aiming to balance individual privacy rights with the necessity of data processing for legitimate purposes. This research paper provides an in-depth examination of the DPDP Act, analyzing its legal framework, compliance challenges for businesses (Data Fiduciaries), and its alignment with international data protection standards, particularly the European Union’s General Data Protection Regulation (GDPR). Additionally, the paper explores the Act’s impact on Data Principals’ rights, enforcement mechanisms, and its broader implications for data residency and cross-border data flows in India.
Many thanks to our sponsor Esdebe who helped us prepare this research report.
1. Introduction
In the digital era, personal data has become a valuable asset, driving economic growth and innovation. However, the proliferation of data collection and processing activities has raised significant concerns regarding privacy and data protection. In response to these challenges, India enacted the Digital Personal Data Protection Act, 2023, aiming to establish a robust framework for personal data protection. This Act seeks to safeguard individual privacy while facilitating lawful data processing, thereby aligning with global data protection trends.
Many thanks to our sponsor Esdebe who helped us prepare this research report.
2. Overview of the Digital Personal Data Protection Act, 2023
The DPDP Act is a comprehensive legislation that outlines the processing of digital personal data in India. It delineates the obligations of Data Fiduciaries, the rights of Data Principals, and the establishment of the Data Protection Board of India. The Act emphasizes the necessity of obtaining explicit consent from individuals for data processing and mandates the implementation of reasonable security safeguards to protect personal data.
2.1 Key Provisions
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Consent Mechanism: The Act requires Data Fiduciaries to obtain freely given, informed, and unambiguous consent from Data Principals before processing their personal data. This consent must be specific, informed, and revocable at any time.
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Data Principal Rights: Individuals are granted rights to access, correct, erase, and withdraw consent regarding their personal data. The Act also introduces the right to nominate a consent manager to manage data-related requests on their behalf in the event of death or incapacity.
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Data Fiduciary Obligations: Organizations processing personal data must implement reasonable security safeguards, conduct data protection impact assessments, and ensure transparency in data processing activities.
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Enforcement Mechanisms: The Act establishes the Data Protection Board of India to adjudicate disputes and impose penalties for non-compliance, with fines up to ₹50 crore for violations.
Many thanks to our sponsor Esdebe who helped us prepare this research report.
3. Comparative Analysis with International Data Protection Laws
The DPDP Act shares several similarities with the GDPR but also exhibits distinct differences.
3.1 Scope and Applicability
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DPDP Act: Applies exclusively to digital personal data and is applicable to entities processing data within India or offering goods and services to individuals in India.
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GDPR: Encompasses all forms of personal data, including non-digital, and applies to organizations processing data of individuals within the EU, irrespective of the organization’s location.
3.2 Legal Basis for Processing
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DPDP Act: Primarily relies on consent as the legal basis for data processing, with limited exceptions for legitimate uses such as compliance with legal obligations and protection of vital interests.
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GDPR: Provides multiple legal bases for processing, including consent, contractual necessity, legal obligations, vital interests, public tasks, and legitimate interests.
3.3 Data Subject Rights
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DPDP Act: Grants rights to access, correction, erasure, and withdrawal of consent. It also introduces the right to nominate a consent manager.
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GDPR: Offers rights to be informed, access, rectification, erasure, restriction of processing, data portability, objection, and rights related to automated decision-making.
3.4 Cross-Border Data Transfers
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DPDP Act: Permits cross-border data transfers unless to jurisdictions restricted by the Indian Government.
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GDPR: Allows transfers based on adequacy decisions or appropriate safeguards.
Many thanks to our sponsor Esdebe who helped us prepare this research report.
4. Compliance Challenges for Data Fiduciaries
Businesses acting as Data Fiduciaries face several challenges in complying with the DPDP Act.
4.1 Consent Management
Implementing mechanisms to obtain, record, and manage consent in a manner that is transparent and revocable poses significant operational challenges.
4.2 Data Security Measures
Establishing reasonable security safeguards to protect personal data requires investment in technology, personnel, and processes, which can be resource-intensive.
4.3 Data Localization and Cross-Border Transfers
Adhering to data residency requirements and managing cross-border data transfers necessitate understanding and navigating complex legal landscapes.
4.4 Data Subject Rights Management
Efficiently handling requests related to data access, correction, erasure, and withdrawal of consent demands robust systems and processes.
Many thanks to our sponsor Esdebe who helped us prepare this research report.
5. Impact on Data Principals’ Rights
The DPDP Act enhances the rights of individuals over their personal data.
5.1 Empowerment and Control
Individuals are empowered with rights to access, correct, erase, and withdraw consent, providing greater control over their personal information.
5.2 Nomination of Consent Manager
The introduction of the right to nominate a consent manager allows individuals to designate a trusted person to manage their data-related requests in specific circumstances.
Many thanks to our sponsor Esdebe who helped us prepare this research report.
6. Enforcement Mechanisms
The establishment of the Data Protection Board of India is a pivotal aspect of the DPDP Act.
6.1 Adjudicatory Role
The Board serves as an adjudicatory body to resolve disputes between Data Fiduciaries and Data Principals, ensuring accountability and transparency.
6.2 Penalties and Fines
The Act stipulates penalties for non-compliance, with fines up to ₹50 crore, thereby incentivizing adherence to data protection obligations.
Many thanks to our sponsor Esdebe who helped us prepare this research report.
7. Broader Implications for Data Residency and Cross-Border Data Flows
The DPDP Act has significant implications for data residency and cross-border data flows.
7.1 Data Localization
The Act’s provisions may necessitate data localization strategies for businesses to comply with data residency requirements.
7.2 Impact on Global Data Transfers
The restrictions on cross-border data transfers could affect international business operations and necessitate the establishment of data processing agreements with entities in permitted jurisdictions.
Many thanks to our sponsor Esdebe who helped us prepare this research report.
8. Conclusion
The Digital Personal Data Protection Act, 2023, marks a transformative step in India’s approach to data protection, aligning with global standards while addressing domestic concerns. While it presents challenges for businesses in terms of compliance, it also offers enhanced protection for individuals’ privacy rights. A balanced approach to enforcement and international cooperation will be essential for the Act’s successful implementation and its integration into the global data governance framework.
Many thanks to our sponsor Esdebe who helped us prepare this research report.
References
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Digital Personal Data Protection Act, 2023. (2023). Government of India. (indiacode.nic.in)
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Data Protection and Privacy Laws: Comparison Between GDPR and India’s Digital Personal Data Protection Act. (2025). Indian Journal of Law, 3(2), 17–22. (law.shodhsagar.com)
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India Digital Personal Data Protection Act, 2023 (DPDP Act). (2025). Ernst & Young. (ey.com)
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India strengthens privacy law with new data collection rules. (2025, November 14). Reuters. (reuters.com)
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India orders VPNs to block access to websites that unlawfully expose citizens’ data. (2025, December 12). TechRadar. (techradar.com)
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India’s new income tax bill proposes broad access to taxpayers’ devices, social media accounts. (2025, February 13). Reuters. (reuters.com)
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ThePrint Charcha on The Digital Personal Data Protection Act, 2023. (2023, September 12). ThePrint. (youtube.com)
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Bills and Acts: Digital Personal Data Protection Act, 2023. (2023, August 19). Sansad TV. (youtube.com)
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