India’s Data Privacy Law Is Almost Here – Are Businesses Ready?

This article originally appeared on BW Businessworld in February 2025.

A Defining Moment for India’s Digital Future

When we look back at this decade, 2023 will mark a pivotal turning point for India’s digital economy—the year when data privacy moved from being a compliance afterthought to a strategic business imperative. The introduction of the Digital Personal Data Protection Act (DPDPA), 2023, accompanied by its Draft Rules, 2025, is more than just regulatory reform. It represents the dawn of a new era where trust, accountability, and data ethics will define the winners and losers in the digital marketplace.

Having worked with organizations across North America, Europe, the Middle East, and Asia, helping them navigate complex regulations like the GDPR and CCPA, I’ve seen this transformation firsthand. Data privacy laws aren’t just legal frameworks—they are catalysts that force businesses to rethink their operations, technology, and even their core values. The DPDPA will do the same for India.

But here’s the hard truth: compliance isn’t the finish line—it’s the starting point. For Indian businesses, this isn’t just about avoiding penalties. It’s about seizing an opportunity to lead with integrity in a data-driven world, differentiate through trust in crowded markets, and future-proof operations against regulatory, reputational, and technological risks. The organizations that understand this—and act decisively—will not just adapt to the new law. They will thrive because of it.

The New Reality: Why Data Privacy Is Now a Business Imperative

In the digital economy, data is more than just information—it’s the fuel that powers innovation, growth, and competitive advantage. But as businesses collect, process, and analyze unprecedented volumes of personal data, the risks have grown exponentially.

What’s Changing with the DPDPA?

The DPDPA introduces sweeping obligations that will fundamentally reshape how businesses operate. Consent must now be explicit, informed, and easily revocable—no more pre-ticked boxes or vague disclaimers. Organizations must notify the Data Protection Board of India and affected individuals within 72 hours of discovering a data breach. Cross-border data transfers will face new restrictions on how and where businesses can transfer personal data outside India, and individuals will have enhanced rights to access, correct, delete, and restrict the processing of their data. Non-compliance could result in fines of up to ₹250 crore (approximately $30 million) or more, depending on the severity of the breach.

But beyond legal repercussions, the real cost of non-compliance is something far more valuable: trust. In today’s hyperconnected world, trust is the ultimate currency. Lose it, and you lose your customers, your brand reputation, and your competitive edge.

The Leadership Imperative: Compliance Is Not Just an IT Problem

One of the biggest mistakes I’ve seen companies make—whether navigating the GDPR in Europe or the CCPA in California—is treating data privacy as just another legal or IT issue. It’s not. Data privacy is a leadership issue. It requires CEOs, boards, and executive teams to think differently about how data is collected, used, and protected; how organizational culture fosters accountability; and how technology can enable—not hinder—compliance at scale.

The businesses that excel under regulations like the DPDPA are those that embed privacy into their DNA, not just their policies. They leverage automation and AI to manage compliance efficiently and shift from reactive compliance to proactive data governance. This isn’t just about checking boxes. It’s about building operational resilience, enhancing customer trust, and creating a sustainable competitive advantage.

The Clock Is Ticking: A Six-Month Action Plan for DPDPA Readiness

With enforcement expected within 12–16 months, businesses must act now. This six-month action plan is designed to help organizations move beyond surface-level compliance and build a privacy-first culture that drives both regulatory readiness and business growth.

Months 1–2: Assess and Align—Laying the Foundation for Compliance

You can’t fix what you don’t know is broken. The first step is to conduct a comprehensive compliance gap assessment. Key questions to address include: What personal data do we collect, and is it necessary for our business operations? Where is this data stored—on-premises, in the cloud, or with third-party vendors? Who has access to it, and are access controls properly enforced? Are we obtaining valid, informed consent? Do we have incident response plans in place for data breaches?

To address these gaps, organizations should conduct a compliance gap analysis to identify vulnerabilities, review existing policies and contracts with third parties, and engage with privacy experts like us to interpret complex regulatory requirements. Additionally, leveraging the right tools can help streamline compliance management and automation.

Under the GDPR, businesses that delayed their gap assessments faced last-minute scrambles, hefty fines, and significant reputational damage. Indian businesses must learn from these missteps and take proactive measures to avoid similar pitfalls.

Another critical step is appointing a Data Protection Officer (DPO) or a privacy leader. While the DPDPA mandates that certain businesses formally appoint a DPO, every organization—regardless of size—should designate a privacy leader responsible for driving compliance initiatives. This role goes beyond legal oversight; it is about embedding privacy into business strategy and ensuring that every department—from marketing to IT—understands its role in data governance.

Months 3–4: Operationalize—Building Systems That Scale

The next step is data mapping and classification. You can’t protect what you don’t understand So businesses must create a comprehensive data inventory to understand what data is collected (e.g., personal identifiers, financial data, health information), where it resides (databases, cloud platforms, third-party systems), and how it flows across the organization. Automated data discovery tools can help map and classify data, while categorizing data based on sensitivity (e.g., biometric data, financial records) will ensure compliance with cross-border data transfer restrictions. In GDPR-compliant markets, businesses that relied on manual data tracking struggled to scale. Automation isn’t a luxury—it’s a necessity. 

Privacy must also be embedded into every business process, from product development to marketing campaigns. This includes developing privacy impact assessments (PIAs) for new projects, standardizing data minimization practices – retaining only what’s necessary and deleting the rest. By eliminating unnecessary data, companies will also reduce storage cost.  Additionally, implementing automated consent management systems will help track, verify, and manage user permissions efficiently.

Strengthening security and incident response capabilities is equally critical. The DPDPA’s 72-hour breach notification requirement means businesses must be prepared to detect, respond to, and report data breaches quickly. Implementing real-time breach detection and response systems, conducting cybersecurity drills, and ensuring third-party vendors align with breach reporting standards are essential steps.

Months 5–6: Validate, Test, and Future-Proof

Building a culture of privacy awareness is vital. Technology can’t fix a culture problem. Privacy isn’t just an IT issue—it’s a people issue. Role-based privacy training for employees across all departments, real-world case studies to highlight risks and best practices, and appointing privacy champions within business units can promote accountability and awareness.

Finally, compliance isn’t theoretical. Businesses must stress-test their systems under real-world conditions. Running mock data breach exercises, simulating regulatory inspections, and continuously monitoring for new threats and regulatory updates will ensure readiness.

The Real Opportunity: Turning Compliance into a Competitive Advantage

The DPDPA isn’t just about avoiding fines—it’s an opportunity to build trust with customers, investors, and partners, enhance operational efficiency through better data governance, and position your brand as a leader in ethical data practices. 

Organizations that treat data privacy as a strategic asset—not a compliance burden—will thrive in India’s evolving digital economy.

The Path Forward: Lead or Lag?

The question isn’t whether your business needs to comply with the DPDPA. That’s a given. The real question is: Will your organization lead—or will it scramble to catch up? The decisions you make today will determine where your company stands tomorrow. 

THE TIME TO ACT IS NOW. To navigate this transition seamlessly, businesses can connect with our experts at Exterro for a deeper understanding of the compliance framework and hands-on guidance in implementing a robust, future-proof data privacy strategy.