• Alignment with Global Standards: The DPDP Act is designed to align with international data protection regulations, such as the General Data Protection Regulation (GDPR) of the European Union. This helps Indian businesses ensure compliance with global data protection norms, facilitating cross-border data flows and international trade.

• Improved International Trade: With stricter data protection standards in place, Indian businesses are better positioned to partner with foreign companies, as they can meet global data protection requirements, enhancing India’s standing in the global digital economy.

• Protection Against Foreign Surveillance: The Act’s provisions on data localization ensure that sensitive personal data is stored and processed within the country. This reduces risks associated with foreign surveillance and control over critical national data.

• National Security: The regulation of data storage and processing within the country enhances control over data, helping to safeguard national security interests and ensure local enforcement of data protection laws.

• Stronger Protections for Sensitive Data: The DPDP Act places greater emphasis on the protection of sensitive personal data (e.g., financial, health, or biometric information), requiring stronger consent and security measures. This ensures that individuals’ most personal information is handled with heightened care.

• Preventing Data Misuse: By enforcing rules for the proper handling of sensitive data, the Act helps prevent its misuse, whether by unauthorized access, accidental disclosure, or exploitation.

• Breach Notification: Organizations are required to notify individuals and regulators about data breaches that compromise personal data. Timely breach notifications enable individuals to take necessary precautions, such as changing passwords or monitoring financial accounts.

• Efficient Breach Management: By imposing clear guidelines on how to manage and report breaches, the DPDP Act ensures organizations take responsible actions in the event of data leaks, minimizing damage to individuals.

• Innovation in Data Protection Tools: The DPDP Act encourages the development of privacy-enhancing technologies by mandating the adoption of privacy-by-design principles. This promotes innovation in privacy and security tools, which can be used by organizations to protect users’ personal data.

• Privacy by Design: Organizations are encouraged to incorporate privacy features from the outset when developing new services or products, ensuring that privacy is not an afterthought but a key consideration in technology development.

• Establishment of a Regulatory Authority: The DPDP Act establishes the Data Protection Board of India (DPBI), which is tasked with ensuring compliance, handling grievances, and resolving disputes related to data protection. This provides individuals with a clear mechanism for seeking redress in case of violations.

• Effective Enforcement: The regulatory body has the authority to impose penalties on organizations for non-compliance and enforce accountability, which strengthens the enforcement of data protection laws.