The passage of the Digital Personal Data Protection Act 2023 (“DPDP Act”) has ushered in a transformative era for privacy governance in India. Businesses now face a crucial strategic decision whether to commence compliance preparations immediately or wait for the government to formally notify detailed rules. The latter approach, often driven by uncertainty and the desire to defer change, is fraught with risks that can jeopardize regulatory standing as well as corporate reputation. With Presidential assent, the DPDP Act is already a binding framework.
The core demands of the DPDP Act are both wide ranging and complex. At the heart of its requirements is the mandate to map every instance of personal data handling within an organization for example, from collection points to erasure protocols ensuring visibility and accountability across the entire lifecycle of personal data. Alongside this, the Act requires businesses to establish robust mechanisms for obtaining, managing and revoking consent, as well as enabling and honoring the rights of individuals whose data is processed. Implementing these elements calls for a functional collaboration between IT, legal, Marketing, HR, procurement, sales and operations teams, a task that cannot be achieved over night.
Crucially, the delay in notification of the Rules under the DPDP Act should be viewed as a valuable opportunity for organizations to proactively pursue compliance, rather than assuming that the non-issuance of the rules has rendered the Act redundant. Businesses can utilize this interim period to strengthen their privacy infrastructure, review in ternal practices and close operational gaps. This forward thinking mindset ensures companies are well prepared to meet regulatory obligations the moment the Rules are enforced, transforming what could be seen as regulatory uncertainty into a competitive advantage and a foundation for trusted data stewardship.
Consider the situation of a financial services firm or fin-tech enterprise dealing with millions of data points every day. An early start would allow management to conduct comprehensive audits on data flows, upgrade user interfaces for consent and access and revise contracts with third party vendors to ensure DPDP conformity.
In the fast-growing ecommerce sector, platforms must modernize their user dash boards, automate data principal requests and build clear pathways for users to update or erase personal data. These operational upgrades require a planned approach and must be integrated carefully into business processes to avoid disruption.
Further, gradual compliance preparation is a cost-effective strategy when compared to rushed, reactive changes in response to last minute regulatory deadlines. Initiating compliance programs ahead of official notification means data mapping, process refinement and poli cy revisions can be executed methodically. Importantly, it provides the time required to review and renegotiate third party vendor agreements, ensuring that partners are also equipped to uphold DPDP requirements. This long-term perspective lets businesses deploy training programs, invest in technology upgrades and address structural changes without impeding core business activities.
It is imperative to update contractual terms with third parties before deadlines, helping to clarify responsibilities and foster a culture of compliance across the supply chain. Investing in training and system upgrades now creates organizational resilience and makes ongoing compliance smoother, thereby reducing the risk of having to pay for expensive emergency fixes later. A phased transition protects momentum and maintains customer trust, ensuring that privacy becomes a hallmark of operational excellence rather than a burdensome obligation. In summary, early compliance readiness for the DPDP Act is both practical and strategic. It enables businesses to execute changes thoroughly, control costs, update third party arrangements, and sustain daily operations smoothly. By fostering a privacy conscious business environment before regulatory deadlines force compliance, organizations safeguard themselves against penal ties, build customer trust, and position themselves at the forefront of India’s digital transformation.
Khushbu Jain is a practicing advocate before the Supreme Court of India and the founding partner of Ark Legal, a law firm specializing in technology and privacy law.
