Balancing Innovation and Privacy: The Impact of India's Evolving Regulatory Framework
Chetan Anand, Associate Vice President – Information Security and CISO, Profinch Solutions, 0
The concept of privacy has been in existence for more than a century in India. The first usage of the term ‘privacy’ in Indian law stems from the Easement Act, of 1882. Section 18b of the act mentions, ‘By the custom of a certain town no owner or occupier of a house can open a new window therein so as substantially to invade his neighbor’s privacy.’
Then, nearly two and half decades ago, The Information Technology Act, of 2000 was enacted in India. This act included punishment for violation of privacy under section 66E and penalty for breach of confidentiality and privacy under section 72. A major amendment was made to this act in 2008, and this became the IT (Amendment) Act 2008, which continues to be in existence.
More recently, the much-awaited Digital Personal Data Protection Act, 2023 (DPDPA-2023) was enacted in India. This act of the Parliament of India provides for the processing of digital personal data in a manner that recognizes both the right of individuals to protect their data and the need to process such personal data for lawful purposes and matters connected therewith or incidental thereto. Then in January this year, the draft Digital Personal Data Protection Rules, 2025 was released to the public by the Ministry of Electronics and Information Technology (MietY), Government of India for feedback until 18 February 2025.
A Unique Balance
This evolving regulatory framework in India presents opportunities as well as challenges. The draft Digital Personal Data Protection Rules, 2025 has caused the privacy landscape in India to undergo a remarkable shift; its impact is expected to introduce a comprehensive and rigorous framework for data protection, essentially changing how businesses manage personal data in the country.
The upcoming rules seek to protect citizens’ rights in accordance with the DPDPA-2023, while achieving the right balance between
regulation and innovation so that the benefits of India’s growing innovation ecosystem are available to all citizens and India’s digital economy. They also address specific challenges like unauthorized commercial use of data, digital harms, and personal data breaches.
India’s model strikes a unique balance between fostering innovation and regulation to protect personal data. Unlike restrictive global frameworks, these rules encourage economic growth while prioritizing citizen welfare. This can be viewed as a new global template for data governance. An adequate period would be provided so that all stakeholders, from small enterprises to large corporations, may transition smoothly to achieve compliance with the new law, as per MeitY’s Press Information Bureau report.
Privacy in Practice
According to ISACA’s State of Privacy 2025 Report, privacy professionals in India face mounting stress amid complex compliance challenges. The global survey, which gathered insights from over 1,600 professionals, including 126 from India, reveals that 53 percent of privacy professionals in India find their roles more stressful than five years ago, with 29 percent experiencing a significant increase in stress levels. The primary stress drivers include the rapid evolution of technology (76 percent), compliance challenges (67 percent), and resource shortages (57 percent). On a positive note, 72 percent of those who always practice privacy by design feel completely or very confident in their ability to ensure data privacy and achieve compliance with new laws and regulations.
The report highlights critical challenges in India’s privacy landscape, particularly in training and data security. Forty-seven percent of respondents worldwide cited inadequate training as a major issue compared to 53% from India. These figures indicate a pressing need for enhanced training and awareness programs in India to mitigate privacy risks effectively, including globally recognized credentials such as the Certified Data Privacy Solutions Engineer (CDPSE).
Looking ahead
The upcoming rules are a testament to India’s commitment to ensuring the protection of the digital personal data of citizens while securing innovation-driven and inclusive growth. Hopefully, this legislation will pave the way for new dedicated privacy and data protection roles in organizations and provide professionals with new job opportunities and additional support as they navigate complex responsibilities.
India’s model strikes a unique balance between fostering innovation and regulation to protect personal data. Unlike restrictive global frameworks, these rules encourage economic growth while prioritizing citizen welfare. This can be viewed as a new global template for data governance. An adequate period would be provided so that all stakeholders, from small enterprises to large corporations, may transition smoothly to achieve compliance with the new law, as per MeitY’s Press Information Bureau report.
The upcoming rules are a testament to India’s commitment to ensuring the protection of the digital personal data of citizens while securing innovation-driven and inclusive growth
Privacy in Practice
According to ISACA’s State of Privacy 2025 Report, privacy professionals in India face mounting stress amid complex compliance challenges. The global survey, which gathered insights from over 1,600 professionals, including 126 from India, reveals that 53 percent of privacy professionals in India find their roles more stressful than five years ago, with 29 percent experiencing a significant increase in stress levels. The primary stress drivers include the rapid evolution of technology (76 percent), compliance challenges (67 percent), and resource shortages (57 percent). On a positive note, 72 percent of those who always practice privacy by design feel completely or very confident in their ability to ensure data privacy and achieve compliance with new laws and regulations.
The report highlights critical challenges in India’s privacy landscape, particularly in training and data security. Forty-seven percent of respondents worldwide cited inadequate training as a major issue compared to 53% from India. These figures indicate a pressing need for enhanced training and awareness programs in India to mitigate privacy risks effectively, including globally recognized credentials such as the Certified Data Privacy Solutions Engineer (CDPSE).
Looking ahead
The upcoming rules are a testament to India’s commitment to ensuring the protection of the digital personal data of citizens while securing innovation-driven and inclusive growth. Hopefully, this legislation will pave the way for new dedicated privacy and data protection roles in organizations and provide professionals with new job opportunities and additional support as they navigate complex responsibilities.