With the notification of Digital Personal Data Protection (DPDP) Rules, India has taken a major step toward robust digital privacy governance. This framework comes into force at a time when nearly a billion Indians engage in online services, ranging from social media and e-commerce to banking and government portals. Thus, raising the stakes for how data is processed, collected, stored, and shared. Industry leaders weigh in on some of the pros and cautions on Data Privacy Day (January 28).

“In an age shaped by algorithms, leadership isn’t about how much data we collect, but how responsibly we handle it. This Data Privacy Day, one thing is clear to me: privacy isn’t a compliance checkbox, it’s a core business muscle. I’ve sat through more than enough conversations where data sourcing was waved away as a technical detail. The DPDPA makes that indifference untenable. When personal data drives decisions that move markets, questions of consent, purpose and provenance stop being legal abstractions and become financial realities. Leadership today demands that data sourcing is transparent, accountable and discussed at the highest level. That’s how trust is built, and how resilient organizations endure. Get this right, and you build for the long term. Ignore it, and you’re not just risking non-compliance, you’re making a bad bet in a world that has little patience left for it,” says Ibrahim H. Khatri, Founder and CEO at privEzi.

“Data Privacy Day is a clear reminder that privacy is only as strong as your ability to see and control who touches your data,” says Dipesh Kaura, Country Director- India & SAARC, Securonix.

This is indeed reflective of a paradigm shift in how autonomy over personal data is protected. Thus, aligning India with global norms as well as shaping the future of digital interaction among businesses, citizens, and the state.

Preventing data misuse and abuse

One of the most significant reasons for having strong data privacy protections is the pivotal role it can play in the prevention of misuse of data. Without enough safeguards, personal data can be exploited for fraud, identity theft, manipulation, as well as profiling. Global research has shown that weak privacy laws tend to concentrate data control in the hands of a few players, thus creating barriers and vulnerabilities that harm consumers and smaller competitors alike.

Important to build user trust and confidence in the era of AI

Today, AI reshapes how data is collected, analyzed, and used. The stakes are exceedingly high for protecting personal data and information. According to reports, in 2025, the global average cost of a data breach was estimated around $4.4–$4.9 million. Cybercrime losses are projected to reach trillions of dollars annually. This is enough proof that cyber incidents can destroy the reputation and trust of enterprises. Therefore, enhanced data privacy fosters confidence among digital users. When individuals know that their information, such as contact details, identity, financial as well as health data, is being used transparently and with consent, they will likely engage with online services and platforms. This trust will fuel economic participation, particularly in ecommerce, fintechs, digital services, and emerging technology sectors.“According to Aon’s Global Risk Management Survey, while “Cyber Attacks/Data Breach” remains the top risk for Indian businesses, “Data Privacy Requirements/Non-Compliance” has emerged as a top concern reflecting the growing influence of global and local regulatory frameworks,” says Apurva Gopinath, Cyber Leader and Vice President, Financial Services & Professional Group, India, Aon.

The DPDP Rules mandate clear data privacy notices so that users understand what data is collected and why. This would go a long way in empowering them to make informed decisions. This shift from hidden terms and conditions to concise and transparent communication reinforces individual control and builds digital trust.

“This Data Privacy Day, the message is clear: privacy is no longer just about compliance, it’s about trust. Businesses must treat personal data with care by limiting what they collect, safeguarding what they hold, and being transparent about how AI and data drive their service. This can be supported by controls like encryption, access management, data loss prevention, and continuous monitoring. By combining these measures with cyber insurance and incident response, organizations can reduce the impact of potential breaches,” adds Gopinath.

Aligning with global standards and trade expectations

As digital trade expands globally, data privacy compliances increasingly influence global businesses. Countries with strong privacy laws are able to negotiate and participate in digital markets more effectively. India’s DPDP rules align its data protection framework with international norms such as the GDPR. This goes a long way in enhancing confidence among global partners and tech investors.

DPDP rules lay foundation for an inclusive digital economy

“Data privacy is no longer just a compliance checkbox , it’s a trust contract. And today, privacy isn’t only about where data is stored, but where it gets exposed first. Credential abuse remains one of the most common ways attackers get in, and voice is still among the least protected yet most exploited channels. With the global average cost of a data breach now around USD 4.88 million, enterprises can’t afford to treat communication security as a downstream concern. When identity verification, encryption, call masking, access governance.and real-time monitoring are embedded at the communication layer, organizations reduce attack surface before data ever reaches core systems. Privacy by design should start with every customer interaction. On Data Privacy Day, the message is clear: secure conversations first, protect data always, and build trust by design, not by exception,” says Dimania, Co-Founder & CTO, Callerdesk.

The DPDP Rules notification represents a critical moment in India’s digital journey. By adopting robust data privacy principles, such as transparency, consent, accountability, as well as security, India is laying the foundation for an inclusive digital economy. In an age when data is driving innovation and fueling emerging technologies, protecting privacy is an important legal requirement. It is also a key strategic element for fostering competitiveness and digital sovereignty, as well as protecting citizen rights.

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