Introduction
As digital economies expand across continents, data protection has evolved from a compliance checkbox to a global business imperative. For organisations straddling India and Europe, two privacy frameworks dominate the conversation: the Digital Personal Data Protection Act, 2023 (DPDP Act) and the General Data Protection Regulation (GDPR).
At first glance, both seem aligned in philosophy, protecting individuals’ privacy, promoting accountability, and setting standards for data processing. Yet beneath the surface lie key operational and structural differences that every global company must understand. Being GDPR-compliant doesn’t automatically make you DPDP-ready.
1. Common Spirit, Different Design
Both laws share a foundational goal: to safeguard personal data. However, the GDPR was born out of Europe’s long-standing constitutional respect for privacy as a fundamental right, creating one of the most comprehensive frameworks in the world. It governs both online and offline data and emphasises transparency, lawful bases, and enforceable individual rights.
India’s DPDP Act, in contrast, represents the country’s first full-scale privacy legislation. It focuses exclusively on digital personal data, whether collected directly online or later digitised, and introduces a streamlined approach centred around two primary roles:
- Data Fiduciary: The entity determining why and how personal data is processed.
- Data Principal: The individual whose data is being processed.
Where the GDPR reflects decades of European legal evolution, the DPDP Act is built for scalability and simplicity, a privacy law that complements India’s digital growth story without overburdening businesses.
2. Territorial Scope: How Far Do These Laws Reach?
The GDPR is globally notorious for its extraterritorial application. It applies to any company, anywhere, that processes the personal data of EU residents, even if the business has no physical presence in Europe. An Indian SaaS platform offering services to EU users or a US-based e-commerce company tracking European visitors will both find themselves under GDPR’s watch.
Similarly, India’s DPDP Act extends beyond national borders. It applies to:
- Processing of digital personal data within India, and
- Entities outside India that offer goods or services to individuals in India.
This means a Singaporean fintech app serving Indian users, or a global corporation storing employee data in Indian servers, must comply. For businesses that handle user data across geographies, dual exposure under both GDPR and DPDP is now common, and ignoring one regime can invite enforcement action from the other.
3. Legal Bases for Data Processing
GDPR: Multiple Lawful Grounds
Under the GDPR, companies enjoy flexibility through multiple lawful bases:
- Consent of the individual
- Performance of a contract
- Legal obligation
- Vital interests
- Public task
- Legitimate interests
This range allows businesses to process data even without express consent in certain justified contexts.
DPDP Act: Narrower Framework
The DPDP Act, however, narrows this landscape. It recognises two primary grounds — consent and legitimate uses. The latter includes processing required by law, employment-related purposes, or state-mandated functions. Notably, India’s law omits the open-ended “legitimate interest” clause that underpins much of GDPR’s flexibility.
For global businesses, this difference matters. Many GDPR-compliant practices, such as behavioural analytics, product improvement, or direct marketing, often rely on “legitimate interest.” Under the DPDP regime, these may require explicit, informed, and revocable consent from Indian users.
4. Individual Rights: Similar Ideals, Distinct Execution
GDPR: Broad, Enforceable Rights
Under GDPR, individuals can:
- Access and obtain copies of their data
- Request correction or deletion
- Restrict processing
- Object to certain uses
- Port their data to another provider
DPDP Act: Simplified but Effective Rights
The DPDP Act mirrors this philosophy but simplifies the procedure. It grants rights to access, correction, and erasure, alongside the ability to raise grievances with the Data Fiduciary. A statutory Data Protection Board of India will oversee compliance, investigate complaints, and impose penalties.
While GDPR sets specific timelines and mechanisms, India’s rules are still evolving. For multinational companies, the prudent path is to implement a unified workflow that extends GDPR-level responsiveness to Indian data subjects.
5. Children’s Data And Sensitive Information
The GDPR explicitly identifies “special categories of personal data” such as health, biometrics, religion, or sexual orientation, that require enhanced protection and, in most cases, explicit consent.
The DPDP Act does not define special categories in the same way. However, it imposes strong restrictions on the processing of children’s data. Businesses must:
- Obtain verifiable parental consent,
- Avoid tracking, profiling, or targeted advertising directed at minors, and
- Adhere to government-specified age thresholds.
Even without a “sensitive data” label, companies handling information like health records, biometrics, or financial details in India should apply heightened safeguards, both to meet sectoral regulations and to align with global privacy expectations.
6. Cross-Border Data Transfers
Cross-border data flow is where the two frameworks sharply diverge.
GDPR Transfer Rules
- The destination country has been declared “adequate” by the European Commission, or
- The transfer is covered by Standard Contractual Clauses (SCCs), Binding Corporate Rules (BCRs), or other approved mechanisms.
DPDP Transfer Rules
The DPDP Act flips this logic. It permits global transfers by default unless the Indian Government specifically restricts certain countries through a notified list, often called the “negative list.”
For now, no such list exists, giving companies operational breathing room. Yet once notified, data controllers will need to verify storage and access locations carefully. Until then, businesses can continue using GDPR-style contractual clauses and internal transfer agreements to maintain accountability and demonstrate due diligence.
7. Governance And Penalties
Under the GDPR, independent Data Protection Authorities (DPAs) across member states oversee compliance, issue guidance, and impose penalties of up to €20 million or 4% of global annual turnover, whichever is higher.
India’s model centralises enforcement under the Data Protection Board of India, established to handle complaints, oversee compliance, and impose monetary penalties. The fines under DPDP can reach up to ₹250 crore (approx. €27 million) per contravention, depending on the severity, particularly for data breaches, non-disclosure, or failure to safeguard children’s data.
Though India’s Board is still in its formative phase, the financial and reputational consequences of non-compliance will be significant. Businesses should therefore treat Indian data governance with the same seriousness as EU compliance, maintaining robust documentation and response mechanisms.
8. Key Compliance Gaps For Global Businesses
For organisations already compliant with GDPR, the DPDP Act may seem familiar — but there are crucial India-specific gaps that must be addressed:
- Language and notice structure: Privacy notices must use DPDP’s terminology (Data Principal, Data Fiduciary) and be written in clear, accessible language suitable for Indian users.
- Consent management: India demands affirmative, informed, and granular consent. Blanket or pre-ticked boxes are invalid.
- Grievance redressal: Companies must appoint a local grievance officer or contact person and provide clear escalation channels.
- Children’s data compliance: Implement reliable age verification and disable behavioural targeting for minors.
- Vendor and processor agreements: Update contracts to include India-specific obligations, breach notification, cooperation with authorities, and data retention limits.
- Documentation and accountability: Maintain audit trails, risk registers, and breach-response protocols demonstrating continuous compliance.
Treating DPDP as a “light” version of GDPR can create serious operational blind spots. India’s enforcement model may be new, but it is expected to be swift, digital-first, and backed by direct monetary penalties.
9. Strategic Alignment: Turning Compliance Into Advantage
Rather than viewing these frameworks as burdens, forward-looking organisations are using them to strengthen customer trust and streamline governance. A unified privacy framework that meets both GDPR and DPDP standards offers clear advantages:
- Reduced duplication: One consistent data-handling standard across markets simplifies operations.
- Enhanced client trust: Demonstrating global privacy compliance builds brand credibility, especially in B2B partnerships.
- Better risk management: Robust privacy practices reduce breach exposure and regulatory liabilities.
- Market readiness: India is projected to become one of the world’s largest digital economies. Being DPDP-ready positions your business to scale without legal roadblocks.
Ultimately, compliance should not be reactive. The goal is to build a privacy-by-design culture, one where transparency, consent, and accountability are embedded into every digital process.
10. Practical Roadmap For Businesses
If you’re already GDPR-compliant, use that foundation to align with India’s framework. A three-phase roadmap can help:
Phase 1 – Assessment
- Map all Indian data flows (customers, employees, vendors).
- Identify overlaps and gaps with GDPR practices.
- Review how consent and grievance redressal are handled in Indian contexts.
Phase 2 – Implementation
- Update privacy policies and website notices for Indian audiences.
- Set up data subject request channels and internal escalation systems.
- Re-negotiate data processing agreements to incorporate DPDP clauses.
- Train employees on India-specific compliance and breach reporting.
Phase 3 – Monitoring And Review
- Track new rules and notifications from the Data Protection Board.
- Conduct periodic audits and privacy impact assessments.
- Maintain continuous documentation to prove good-faith compliance.
Building a compliance culture early is always less expensive than reacting to regulatory investigations later.
11. Looking Ahead: The Global Convergence of Privacy
The GDPR and DPDP Act are not competing systems; they represent a convergence of global privacy principles. The EU’s regime reflects maturity; India’s reflects momentum. Together, they are shaping a new standard for data ethics that prioritises both innovation and individual dignity.
For global companies, the real challenge lies not in meeting two separate checklists but in embedding one universal privacy framework that scales across jurisdictions. Transparency, accountability, and respect for user choice are now universal business values, not regional obligations.
Final Thoughts
India’s Digital Personal Data Protection Act, 2023 is not just another compliance hurdle; it is a signal that the world’s largest digital democracy is asserting a structured vision of data governance. When seen alongside Europe’s GDPR, it marks the maturing of a global consensus on privacy, one that demands businesses handle personal data responsibly, lawfully, and transparently.
Whether you operate a global e-commerce platform, manage cross-border HR systems, or run a SaaS business with Indian clients, now is the time to act. Review your frameworks, align your notices, and train your teams, because in the era of data sovereignty, compliance is not just a legal defence, it’s a strategic advantage.
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