Tejasvi Addagada on India's DPDP 2025 Rules: A Catalyst for Competitive Advantage in the Global Digital Economy
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“Organizations stand at a crossroads: treat DPDP 2025 as a hurdle or embrace it as a strategic advantage.”
India’s digital economy—projected to surpass $1 trillion by 2030—is entering a pivotal phase with the launch of the Digital Personal Data Protection (DPDP) Rules 2025. As Tejasvi Addagada, one of the first Data Protection Officers (DPOs) managing compliance with GDPR, ADGM and DIFC data protection regulations at a global bank, I have seen how strong privacy regulations can enhance consumer trust and boost corporate accountability. Today, Indian businesses find themselves at a critical juncture - Will they see DPDP 2025 as merely a regulatory burden, or seize it as a game-changing opportunity for transparency, innovation, and market leadership?
Elevating India’s Status in Data Governance
DPDP 2025 offers a clear roadmap for Indian companies looking to align with global privacy standards. By fostering trust, driving accountability, and promoting privacy-first principles, these rules could position India as a world leader in adopting data governance. However, the stakes are high. Recent data from the IBM-Ponemon Institute indicates that the average cost of a data breach in India has risen to $2 million, underscoring the financial and reputational risks for businesses that fail to prioritize data risks.
“A privacy-first mindset isn’t just about avoiding fines it’s about earning consumer trust and building a long-term competitive advantage.”
For everyday users, stronger data protection can mean fewer unsolicited marketing calls, clearer consent screens and quicker responses when requesting companies to delete or correct their data. This builds confidence in India’s digital services, encouraging more people to transact and share information online.
A Decisive Evolution in Corporate Culture
Under DPDP 2025, transparency and trust become business imperatives, beginning with user-friendly consent processes and clear notices about data usage. It also elevates the Data Protection Officer from a peripheral role to a central organizational authority. This signals that privacy is now a board-level concern with serious strategic and reputational implications.
Added special protections for children’s data and stricter penalties for violations indicate India’s commitment to safeguarding vulnerable groups. Coupled with potential cross-border data transfer provisions, these measures aim to balance digital sovereignty with global commerce, encouraging Indian firms to adopt responsible data handling without compromising innovation.
Contrast with GDPR
Comparisons of DPDP to Europe’s GDPR are inevitable. Both frameworks emphasize customer control of data, breach notifications, and data subject rights. Yet India’s DPDP includes local nuances—for instance, a stronger focus on indigenous data sovereignty and potential sector-specific exceptions for smaller fintechs or agri-tech players.
Unlike Europe’s perceived homogeneous markets, India’s business landscape spans a vast SME sector, diverse regions, and uneven digital maturity. Micro and small enterprises lack specialized compliance teams, making DPDP implementation more complex. Meanwhile, banking, healthcare, e-commerce, and ed-tech each face sector-specific challenges that require tailored strategies.
The DPO’s Expanding Role
“A DPO must be both a compliance watchdog and a strategic advisor.”
Data Protection Officers wear many hats, from risk managers to digital ethics champions. Drawing on my experience implementing GDPR, success hinges on
- Engage top leadership to ensure privacy initiatives have real participation
- Involve legal, Information Technology, compliance and operations early
- View regulations as living frameworks, refining approaches to evolve
Implementation Roadmap: Four Key Pillars
1.Data Discovery and Mapping
- Use advanced tools to locate, classify, and monitor personal data across systems
- Helps pinpoint vulnerabilities and ensures data life cycles are well-understood
2. Privacy by Design (PbD)
- Ensure privacy principles are adhered to at every stage of product development and data handling
- From concept to execution, ensure compliance is built in, not bolted on
- For detailed, step-by-step guidance on managing privacy risks, refer to Data Risk Management: Essentials for Implementing an Enterprise Control Environment.
3. Incident Response
- Maintain a proactive, well-defined incident response plan, swift containment, root-cause analysis, and clear communication to the privacy board as well as consumers
- Minimize reputational damage and uphold consumer trust
4. Foster a Privacy-Focused Culture
- Conduct regular training and awareness programs so all employees get the basics of data protection
- Make privacy a core organizational value rather than a mere checkbox
The Business Case for Privacy and Innovation
Privacy-first models can fuel innovation in India’s booming digital economy. AI-powered classification tools, privacy-enhancing technologies like differential privacy, and zero-trust architectures help streamline compliance tasks from identifying sensitive data to managing breach notifications. As international privacy standards converge, Indian companies with DPDP-aligned operations will enjoy a smoother path to global expansion. Visionary leaders should leverage Data Privacy as a brand-enhancing opportunity that secures customer trust.
Tejasvi Addagada is recognized as one of Asia’s earliest Data Protection Officers and Global Data officer, having led GDPR compliance for a global bank
Disclaimer: No Business Standard Journalist was involved in creation of this content
Topics : Digital economy
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First Published: Jan 09 2025 | 11:51 AM IST
