What Is DPDP Act?
The DPDP Act (Digital Personal Data Protection Act) is a law that governs how personal data of individuals
in India is collected, stored, processed, shared, and protected.
In simple terms
It gives individuals more control over their personal data
It puts clear responsibilities on organizations
Why Did India Introduce DPDPA?
India has seen massive growth in every industries.But data breaches also increased.
Customer data leaks, identity theft, phishing scams, and misuse of personal data became common.
The DPDP Act was introduced to:
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Protect citizens’ privacy
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Prevent misuse of personal data
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Build trust in India’s digital economy
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Align India with global data protection standards
Who Does DPDPA Apply To?
The short answer: almost everyone.
DPDPA applies to:
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Startups and MSMEs
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IT companies and SaaS platforms
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E-commerce websites
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Banks, NBFCs, fintech companies
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Hospitals, clinics, and health apps
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Educational institutions
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Employers handling employee data
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Any foreign company processing data of Indian citizens
If you collect data digitally and can identify a person, DPDPA applies.
Penalties Under DPDP Act
This is where many companies wake up.DPDP penalties can go up to ₹250 crore per violation.
Some common penalty triggers:
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Data breach due to poor security
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Processing data without consent
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Not responding to user requests
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Failure to protect children’s data
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Ignoring grievance redressal
For startups and MSMEs, even a small penalty can be business-ending.
Why DPDP Compliance Is Also a Business Advantage
DPDP compliance helps you:
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Build customer trust
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Win enterprise clients
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Close international deals
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Improve security posture
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Reduce breach risks
6.Stand out from competitors
Final Thoughts
The DPDP Act 2025 is not optional. DPDP isn’t only for big enterprises.
Startups and MSMEs handle just as much sensitive data, often with fewer controls.
Getting compliant early saves money, stress, and reputation when your business starts scaling fast.
We’ve helped organisations across industries modernise their security and privacy posture and we can help you too.
Book a quick call with digiALERT and start your DPDPA compliance journey with confidence.
