India’s DPDP Act’s Impact on Global Data Flow

Tech leaders and Indian officials discussed business-friendly DPDP Act rules starting in August 2023.

By Sunil Sonkar
2 Min Read
India's DPDP Act's Impact on Global Data Flow

Big tech companies and the Indian Ministry of Electronics and Information Technology (MeitY) recently got together to talk about the draft rules for the Digital Personal Data Protection (DPDP) Act. This act, which started in August 2023, is getting attention for being friendly to businesses.

Surprisingly, the DPDP Act 2023 does not force companies to keep data only in India, unlike before. Now, companies can choose where to keep their digital stuff and the government is okay with it.

The rule says companies can take Indian people’s information to other countries and this helps foreign digital companies in India. Big tech companies have some special checks and small startups don’t have to follow all the rules, making them more interesting for people who want to invest.

India is changing how it takes care of data, trying to keep things private but also let data move around the world. The DPDP Act makes sure India follows the right rules for sharing data globally and this makes other countries want to do business with India.

Even though the new rules help businesses, they also say that companies have to tell if something goes wrong with people’s data and they might get in trouble. This could be hard for smaller businesses. Also, there are rules about using data only for what it is supposed to be used for, and this might change how digital ads work.

As China tightens data rules, India’s DPDP Act makes it a good choice for tech investments. Countries like Norway and South Africa like the act, thinking it is a model for data protection in developing places. But remember, this is just the start of India being careful with data – there is more to come.

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