Overview
The Digital Personal Data Protection Act (DPDPA) 2023 is India's first comprehensive data protection law. It shares significant DNA with the EU's GDPR both are built around individual rights, consent, and accountability but has key structural differences that matter for compliance. If your company handles personal data of Indian residents, you need to understand both frameworks.
Key similarities
Both GDPR and DPDPA establish lawful bases for processing, require clear and specific consent, grant individuals rights over their data, and require breach notification. Both impose significant penalties for violations (GDPR up to 4% of global turnover; DPDPA up to INR 250 crore per violation). Both require organizations to appoint a data protection officer or equivalent.
- →Lawful bases for processing personal data
- →Meaningful consent requirements
- →Individual rights: access, correction, erasure
- →Mandatory breach notification
- →Data minimization and purpose limitation
- →Cross-border transfer restrictions
Key differences
The most significant structural difference is the DPDPA's treatment of Significant Data Fiduciaries (SDFs). SDFs are organizations processing large volumes of sensitive data or data that poses high risk to national security. SDFs face additional obligations including mandatory Data Protection Impact Assessments, annual audits, appointment of an independent Data Auditor, and deployment of Consent Managers.
- →GDPR applies to all 'controllers'; DPDPA distinguishes between Data Fiduciaries and Significant Data Fiduciaries
- →DPDPA allows processing of children's data only with verifiable parental consent (GDPR age varies by member state)
- →DPDPA cross-border restrictions: transfer only to countries approved by the Indian government
- →GDPR extraterritorial scope is broader; DPDPA applies primarily to data of Indian citizens
What Indian companies need to do
First, determine whether you're a Significant Data Fiduciary if so, your obligations are substantially higher. Second, review your consent mechanisms: DPDPA consent must be 'free, specific, informed, unconditional, and unambiguous' bundled or conditional consent is not valid. Third, establish data localization practices for categories that may be restricted from cross-border transfer. Fourth, build individual rights workflows (access, correction, erasure, grievance redressal).
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