India's Digital Personal Data Protection Law: Implications For Global Businesses

On November 14, 2025, the government notified the Digital Personal Data Protection Rules, 2025, providing detailed operational guidance on how to implement the provisions of the Digital Personal Data Protection (DPDP) Act (enacted in August 2023). The rules formalize requirements related to consent, breach management, transparency, risk assessments, and cross-border transfers. They also introduce procedural mechanisms for the newly formed Data Protection Board, which will serve as the central enforcement body. Thus, Indian gets its privacy law in place though the government has provided a transition period for compliance to be rolled out over a 12 to18-month window.

The DPDP Act is a significant step in regulating the processing of personal data while ensuring the privacy and security of individuals in an increasingly digital world. It creates a comprehensive framework for managing the collection, use, storage, and transfer of personal data, balancing individual privacy rights with the need for technological innovation. It applies not only to entities within India but also to foreign businesses that offer goods or services to Indian residents or process their data.

At its core, the DPDP Act strengthens individuals' rights over their personal data, granting them the ability to consent, access, correct, port, and erase their data. Consent, which must be explicit and informed, is a central tenet. Before any personal data is processed, entities must ensure they obtain clear consent from individuals.

The DPDP Act imposes significant responsibilities on data fiduciaries - entities that handle personal data. These fiduciaries are required to ensure robust data security, address grievances, and comply with data protection standards outlined in the Act. A newly established Data Protection Authority (DPA) has been tasked with overseeing compliance, resolving complaints, and enforcing penalties for violations. The DPA will also raise awareness of individuals' rights and ensure data fiduciaries are held accountable. Notably, the law restricts the transfer of personal data outside India to countries that do not provide adequate data protection.

Key Features of the DPDP Rules, 2025

1. Consent and Lawful Processing

The Rules set clear standards for valid consent, requiring it to be informed, specific, and unambiguous. Businesses must implement mechanisms for clear notices, withdrawal options, and verifiable consent records. Additionally, the Rules specify conditions under which data processing may occur without explicit consent, such as for legitimate purposes.

2. Breach Notification and Security Safeguards

Data fiduciaries must implement "reasonable security safeguards," establish incident response protocols, and notify the Data Protection Board and affected individuals in the event of a personal data breach. The Rules impose strict timelines for breach notifications - immediate notification followed by detailed incident reports within 72 hours - placing pressure on organizations to enhance their detection and reporting capabilities.

3. Governance, Accountability, and Documentation

The Rules provide extensive guidance on record-keeping, Data Protection Impact Assessments (DPIAs), the roles of Data Protection Officers, grievance redressal procedures, and privacy-by-design principles.

4. Cross-Border Data Transfers

The Act adopts a "blacklist-based" approach to cross-border data transfers, but the Rules clarify the safeguards and documentation required for transferring data outside India.

5. Enforcement and Procedural Mechanisms

The Rules lay out procedures for investigations, hearings, and the imposition of penalties by the Data Protection Board. The potential for substantial financial penalties raises the stakes for compliance.

Sector-Specific Impact

While the framework of the law applies broadly across industries, its implications will vary significantly depending on the sector.

Fintech Sector

Fintech companies, which handle sensitive financial and identity data, will need to take specific steps to ensure compliance:

1. Consent Overhaul: Customer onboarding, KYC processes, and credit assessments must be redesigned to meet the consent and notice requirements.
2. Breach Readiness: Timely detection and breach notification are critical. Upgraded security measures, including logging, monitoring, and incident response, will be necessary.
3. Regulatory Harmonization: The DPDP Rules must be aligned with sector-specific regulations, such as those from the Reserve Bank of India (RBI), to ensure consistency in data handling, retention, and cybersecurity practices.
4. Strategic Priority: Data lifecycle processes, including collection, retention, transfer, and disposal, should be aligned with both DPDP and RBI requirements to avoid redundant compliance efforts.

Advertising Technology (AdTech)

The AdTech sector, which heavily relies on data profiling and behavioural tracking, will face challenges in complying with the requirements:

1. Consent-Centric Processing: Advertising practices, such as programmatic ads, must be restructured around clear and granular consent.
2. Profiling Limitations: Targeting mechanisms should allow users to opt out and ensure transparency, especially when decisions are made that significantly affect users.
3. Vendor Ecosystem Governance: AdTech companies will need to tighten controls throughout the advertising supply chain to prevent unauthorized data sharing.
4. Strategic Priority: Implement Consent Management Platforms (CMPs) and audit data flows within the advertising ecosystem.

Technology Sector

Global technology companies, including cloud providers and SaaS platforms, will bear significant governance and compliance responsibilities:

1. Enhanced Accountability: Large platforms must set up cross-functional teams for data governance, privacy engineering, and internal audits.
2. Cross-Border Data Management: Cloud and SaaS providers must implement DPDP-compliant safeguards for international data transfers.
3. Regulatory Engagement Maturity: Companies must be prepared for structured interactions with the Data Protection Board, including providing detailed records of data processing activities.
4. Strategic Priority: Incorporate privacy-by-design principles directly into software development processes and cloud architectures.

OTT Platforms

OTT platforms, such as streaming services and video-on-demand providers, must address several key compliance areas:

1. User Profiling and Personalised Recommendations: OTT platforms that use behavioural data for content recommendations must ensure clear consent and offer users the ability to opt-out.
2. Age-Gating and Children's Data: Platforms popular with minors must comply with additional obligations regarding parental consent and restrictions on targeted advertising.
3. Cross-Border Transfer Dependencies: Platforms with global content delivery networks (CDNs) must ensure compliance with cross-border data transfer requirements.
4. Data Minimisation and Retention: Data retention must be linked to specific purposes, avoiding indefinite storage for analytics or development purposes.
5. Breach Notification and Playback Security: Given the prevalence of security threats, OTT platforms must enhance access controls, fraud monitoring, and incident response processes.
6. Strategic Priority: Update user dashboards for easy consent management and data deletion, and conduct DPIAs for recommendation engines and streaming infrastructure.

FMCG Sector

Fast-moving consumer goods (FMCG) companies will need to adjust their customer data practices:

1. Consent for Marketing and Loyalty Programs: Customer profiling for marketing and loyalty programs must be based on clear, auditable consent.
2. Breach Notification and Safeguards: FMCG companies must enhance incident detection, encryption, and third-party vendor controls to comply with breach notification requirements.
3. Cross-Border Transfers: Global marketing platforms and cloud providers must be aligned with the requirements set out in the law to ensure smooth data transfers.

Online Marketplaces

E-commerce platforms will face significant operational challenges:

1. Consent, Profiling, and Breach Reporting: Behavioural targeting and personalized pricing models must be redesigned to support granular consent and comply with breach reporting requirements.
2. Cross-Border Transfer Safeguards: Platforms will need to ensure compliance with data transfer safeguards when integrating with global cloud and payment systems.
3. Incident Response and Supplier Due Diligence: The short breach-notification windows and the enforcement powers of the Data Protection Board require e-commerce platforms to prioritize breach detection, supplier oversight, and transparency to consumers.

Conclusion

India's Digital Personal Data Protection Law marks a pivotal shift in the country's digital governance framework. For global businesses, compliance with the DPDP Act is not just a regulatory obligation but a critical component of strategic planning. Companies across sectors such as fintech, adtech, technology, OTT, FMCG, and e-commerce must overhaul their data practices to ensure compliance and protect user trust.

By proactively embracing the law, businesses can mitigate regulatory risks, enhance their data governance, and maintain their competitive edge in one of the world's largest and fastest-growing digital markets.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.