The BGA India team, led by Managing Director Ratan Shrivastava, wrote an update to clients on India’s new Digital Personal Data Protection Act.

Context

  • Digital Personal Data Protection Bill, 2023, after both houses passed the legislation during Parliament’s 2023 monsoon session. The swift passage came as a surprise: partisan politics beset the parliamentary session even as the government sought to advance its “reform, perform and transform” agenda.
  • The legislation establishes broad procedures on how businesses and the government can collect and use the personal data of Indian citizens. The law’s technology-agnostic approach and scope — covering futuristic data concepts — expands its applicability across a wide range of economic sectors, including banking, e-commerce, telecommunications, technology platforms and health care.

Significance

  • The law aims to create a data protection framework, unlocking India’s potential to become a $1 trillion digital economy by 2026. Although the act’s reception has been positive among the industry at large, concerns remain regarding the broad language for “legitimate use” exemptions available to the government.
  • The law provides a governance framework for individuals and industry alike concerning the collection, storage, indexing, sharing, use, and dissemination of personal digital data. Given the dynamic nature of technology disruptions, the law adopts a more principles-based framework without determining processes and modalities for different technologies and sectors.

Implications

  • Companies should seize opportunities over the next several months to participate in consultations leading up to the law’s rollout. The government expects to implement the law within 10 months.
  • Businesses should also prepare for additional compliance burdens given the law’s stringent noncompliance penalties. The law calls for the appointment of a data protection officer, and a data fiduciary is required to establish a grievance redressal mechanism.

We will keep you updated on relevant developments. If you have questions or comments, please contact BGA India Managing Director Ratan Shrivastava at ratan@bowergroupasia.com.

Best regards,

BGA India Team

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