🕉️ DPDPA - Privacy and Data Protection in India
Top 3 Innovations Introduced by India’s Privacy Law
I’ve never been to India. Before becoming a tech entrepreneur, I worked as a software architect at a financial institution, and that company relied on several components developed by Indian firms. I had never spoken English with anyone other than my language course teachers, and suddenly, I found myself in a teleconference with software architects from India.
I can’t say it was easy, but I’ve always been grateful for the challenge. When I first learned about the DPDPA1, India’s new law regulating privacy and data protection in the world’s most populous country (China hasn’t surpassed it yet, right?), I knew I had to study how it worked. Some other tasks kept me busy for a while, but I’m here now to break it down and highlight some of the innovations that caught my attention.
India is emerging as a global economic powerhouse, experiencing rapid growth and expected to become the world's third-largest economy by 2027. It is playing a leading role on the international stage through its influential tech industry and participation in economic blocs like BRICS.
Now, as it prepares to enter a new era of data protection with the Digital Personal Data Protection Act (DPDPA), here’s the basics which closely resemble the most common global privacy laws: this legislation sets rules for the collection, processing, and storage of personal data, granting rights to individuals and imposing responsibilities on businesses. The goal? To safeguard privacy in one of the world’s largest digital markets.
So far, nothing groundbreaking.
Innovation 1: Blacklists
When compared to Europe’s GDPR, there are both similarities and key differences. Both laws require explicit consent for data usage, grant access and deletion rights to data subjects, and impose penalties for violations. However, DPDPA takes a more flexible approach to international data transfers, adopting a "blacklist" system, where certain countries may be prohibited from receiving Indian data. In contrast, GDPR requires legal safeguards like Standard Contractual Clauses (SCCs) to regulate data flows.
This seems like a rather innovative approach; instead of selecting approved countries, India has chosen to define which ones are banned. If we compare this to the U.S., some state laws, like the Colorado Privacy Act (CPA) and the Connecticut Data Privacy Act (CTDPA), require Data Protection Assessments (DPA) for handling sensitive data or transfers that may pose risks to consumers. But these assessments don’t go as far as outright banning transfers to specific nations.
Something tells me, though, that this blacklist model could become a trend in other jurisdictions in the near future.
Innovation 2: 1984
Another key difference is that DPDPA grants broader exceptions for government use of data, raising concerns about surveillance (hello, 1984). However, this seems more like an alignment with India’s existing regulatory framework rather than a truly groundbreaking change.
In India, the government already has extensive surveillance powers, allowing it to access personal data and monitor online activities under the justification of national security and public order. Given this context, it’s no surprise that DPDPA wouldn't deviate from this approach.
In short, while this raises important privacy concerns, it’s more of an expected continuity rather than a regulatory innovation.
Innovation 3: Consent Managers
Now, this is what I found most interesting: Consent Managers.
A Consent Manager is typically a company that acts as an independent intermediary to facilitate user consent management, allowing people to view, modify, and revoke permissions in a standardized way. This differs from the European model, where each company must manage its own consent directly. To be registered, a Consent Manager must demonstrate technical, financial, and governance capabilities, as well as avoid conflicts of interest with data controllers.
This innovation creates a legally recognized structure that enables startups and companies specializing in consent management to function as official brokers, maintaining people's consent records rather than leaving that responsibility solely to data controllers. Today, similar companies already exist, but they primarily act as data processors, keeping accountability tied to the controller. However, under the Consent Manager framework, these companies gain more autonomy, independence from controllers, and can store user preferences and consent records directly, making it easier for individuals to manage their data choices.
But with billions of people and potentially hundreds of Consent Managers operating in India, how will this work in practice?
There is a central regulatory body, the Data Protection Board of India (DPB), responsible for registering, regulating, and overseeing Consent Managers, ensuring they operate transparently and without conflicts of interest. To be registered, a Consent Manager must prove:
Technical capability and security – The platform must be interoperable, ensuring secure storage and transfer of consent records.
Governance and transparency – Companies must adhere to strict governance rules and avoid conflicts of interest with data controllers.
Official registration and oversight – The DPB maintains an official list of registered Consent Managers and can audit them to ensure compliance.
This model introduces a unique approach to consent management, potentially making privacy choices easier for users while creating new business opportunities for privacy-focused companies. If well-executed, it could set a precedent for other countries. However, its success will depend on enforcement, technical standardization, and the scalability of DPB oversight.
Ok, but how It Works in Practice?
The user registers with a Consent Manager of their choice (essentially acting as a "Consent Bank").
When interacting with a website or app that collects personal data, the service can integrate with the Consent Manager to record the user's consent.
The user can access their account in the Consent Manager to view, modify, or revoke any previously granted consent in one place.
If the user revokes a permission, the Consent Manager notifies all involved companies, instructing them to stop processing the data accordingly.
This setup centralizes consent management, making it easier for individuals to control their data while reducing the compliance burden on businesses.
If well implemented, this model could enhance privacy control for users and simplify compliance for businesses. Now imagine this on a global scale? However, its effectiveness will depend on technical standardization and enforcement by the DPB, which is a common challenge in countries implementing privacy laws. If too many poorly regulated or unethical Consent Managers emerge, it could turn into chaos instead of solving the problem.
Additionally, DPDPA introduces mechanisms to prevent excessive data retention, requiring companies to notify users 48 hours before deleting their data. Companies classified as "Significant Data Fiduciaries", meaning those processing large volumes of personal data, will face additional obligations such as regular audits and Data Protection Impact Assessments (DPIAs).
In short, DPDPA marks a significant step forward for digital privacy in India, blending elements of GDPR with local solutions. But like any new regulation, its success will hinge on proper enforcement and execution.
Now the real question is: how will the Indian market and government balance innovation with data protection? I personally found some of these innovations quite interesting; it's essential for regulations to experiment with different approaches to tackle the challenges emerging from current privacy models.
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https://www.meity.gov.in/writereaddata/files/Digital%20Personal%20Data%20Protection%20Act%202023.pdf