India
United Kingdom
JamaicaBy Hersh Desai
“When exactly does the data privacy law become mandatory?” This is the question heard most often from Indian businesses today. But here's what usually follows: “Do we really need to worry about this? Most Indians don't even understand data privacy.” They are not entirely wrong. In a population of 1.5 billion, perhaps a billion people haven't given much thought to data privacy. But if you are a business targeting or looking to target India's digitally savvy, economically empowered consumers, a demographic that's increasingly conscious of data privacy, then The Digital Personal Data Protection Act 2023 (DPDPA) is not only relevant but crucially demands your urgent attention. As data privacy begins to emerge in India as a potential point of market differentiation, we explore, in this blog, five compelling reasons for companies to take swift action and to get on the front foot in terms of their DPDPA planning, preparation and implementation.
Let’s briefly consider what has been announced to date. The DPDPA came into force in August 2023, and the Draft Rules were released in January 2025. But here's the catch. The government hasn't yet announced a specific enforcement start date. This uncertainty has created two camps in the business world: the ‘wait and see’ crowd and the ‘prepare now’ strategists.
Certain important measures remain to be clarified. The Data Protection Board, the body designed to oversee compliance, is in the process of being established, sectoral exemptions are being finalised, and implementation guidelines are taking shape. Industry experts estimate full enforcement could begin anywhere from late 2025 to mid-2026. However, smart businesses aren't gambling on these timelines; rather they are planting their flag firmly in the ‘prepare now’ camp and taking decisive action to get ahead.
A key driver for these ‘prepare now’ businesses is the acknowledgement that there exists a significant customer group who is likely to demand action. This group includes:- Urban professionals: who use multiple digital services daily
- Tech-savvy millennials and Gen Z: who've grown up with social media privacy concerns
- Educated consumers: who read terms of service and privacy notices
- Higher-income segments: who have more at stake with their personal information
- Business clients: who are themselves navigating privacy compliance.
High-value customers aren't just aware of data privacy. They are using data privacy practices as a quality signal. In their minds, a business that takes data privacy seriously is a business that takes them seriously. This market segment has options, spending power, and the luxury of choosing providers based on values, not just price.
Should a business in a particular customer-facing sector get hit with a violation notice under the Act at some future point, guess who the premium customers will remember? The business that was scrambling to fix data privacy issues, or the one that had robust protections in place from the outset?
Countering the ‘why wait?’ lethargy: Five compelling reasons to act now
If you feel your organisation may be teetering towards the ‘wait and see’ camp, let us highlight five key factors for your consideration.
1. Competition for premium customers is global
Digitally sophisticated customers aren't just comparing an organisation’s data privacy posture with other Indian businesses; they are comparing with international standards. They expect the same level of data privacy from their Indian service providers and will hold these service providers to global standards.
Kick starting preparations now to comply with the DPDPA aligns Indian companies with global data privacy standards, making them competitive not just locally, but internationally. This is crucial when the target market has both the understanding and the means to choose providers, opting for those who meet their data privacy expectations and rejecting those that fall short.
2. Trust is the ultimate premium product
While many Indians may not prioritise data privacy, premium customers absolutely do. For the target demographic, data privacy isn't a nice-to-have – it's a prerequisite for engagement. These are customers who:
- Research apps before downloading them
- Read reviews that mention data security
- Are willing to pay more for services they trust
- Influence others' purchasing decisions through social recommendations.
3. The Educated Consumer Backlash
While most Indians might not understand data privacy today, customers learn fast. When violations of the Act start making headlines (and they will), privacy-conscious customers will quickly become privacy-demanding customers.
Those businesses that are ready for this shift in consumer attitude will be better placed to capture market share from those caught unprepared. A proactive approach to data privacy will be the differentiator that captures customers fleeing from competitors who joined the ‘wait and see’ faction.
4. Premium market penalties hurt more
Reputational damage in premium markets is notoriously hard to recover from and risks being compounded by privacy-related regulatory fines. Sophisticated customers have long memories and multiple alternatives. It is not just the cost of the fine that is at play with a data privacy violation; it is the lost opportunities caused by the erosion trust from customers who are hardest to win back.
5. Compliance takes time
Compliance with India’s new privacy law, which requires a sea-change in business behaviour, is not going to be an on-off switch. A phrase that bears repeating is that compliance is a journey and not a destination. When the Data Protection Board eventually starts knocking on the doors of businesses that are data fiduciaries, it will be the ‘early movers’ which have the distinct advantage having made greater progress with their compliance responsibilities.
Think of this grace period as a gift. While most businesses are waiting for clarity, the ‘early movers’ can be building systems, training teams, and creating processes without the pressure of immediate deadlines. Companies that use this time wisely will find compliance manageable; those that wait, risk finding themselves on the back foot, possibly eroding brand trust and consumer confidence while they scrabble to play catch up.
Privacy compliance isn't just about avoiding penalties; it's about capturing the customers who have both the awareness to demand data privacy and the resources to pay for it. Those that claim that “most Indians don't care about data privacy” may be right. But India isn’t a homogeneous market. There is a discerning segment that values data privacy and has the power to choose providers who share their values - and it is widely accepted that this segment will lead the rest of India into growing a greater awareness of data privacy. For any organisation targeting this demographic, our advice is clear: ‘Why wait?’ Start your compliance journey today and become a ‘prepare now' strategist.
