Industry leaders and legal experts are calling for significant investments in consent management systems and embedding data protection frameworks following the implementation of India's Digital Personal Data Protection (DPDP) Act. The urgent need for organizational readiness was emphasized during recent discussions about the landmark legislation.
The Call for Proactive Investment in Consent Infrastructure
During a panel discussion organized by the PHD Chamber of Commerce and Industry, experts highlighted that businesses cannot afford to wait for the complete establishment of the Data Protection Board before implementing necessary changes. Rama Vedashree, former CEO of FICCI, stressed that organizations should immediately begin investing in consent managers and related infrastructure.
"Industry must invest in consent today, not wait for the Data Protection Board to be fully constituted," Vedashree asserted during the discussion. She emphasized that consent managers would play a crucial role in the new data protection ecosystem, serving as vital intermediaries between data principals (individuals) and data fiduciaries (organizations).
Understanding the DPDP Act's Key Provisions
The DPDP Act, passed by Parliament in August 2023 and receiving presidential assent the same month, represents India's comprehensive framework for personal data protection. The legislation establishes clear responsibilities for organizations handling personal data while empowering individuals with greater control over their information.
Vedashree explained the fundamental shift required by the new law: "The paradigm has shifted from a world where we could process data for any legitimate purpose to a purpose-limited data processing world." This transition means organizations can no longer use collected data for unlimited purposes beyond what was originally specified during collection.
The legislation introduces several critical concepts that businesses must understand and implement. These include the distinction between data fiduciaries (entities determining purposes and means of processing) and data processors (entities processing data on behalf of fiduciaries). More importantly, it establishes specific lawful uses where explicit consent isn't required, such as for voluntary data sharing or specific state functions.
Practical Implementation Challenges and Solutions
Vikas Jain, Partner at JSA Advocates and Solicitors, highlighted the practical challenges organizations face in implementing the DPDP Act. He noted that many companies are struggling with understanding what constitutes valid consent under the new regulations.
"The biggest challenge for the industry is understanding what is valid consent and how to take it," Jain observed. He emphasized that consent must be free, specific, informed, unconditional, and unambiguous with clear affirmative action. Organizations must provide comprehensive notices covering multiple specified aspects before collecting any personal data.
The experts identified several critical areas requiring immediate attention from businesses. These include developing robust mechanisms for managing consent lifecycles, creating systems for handling data principal rights requests, establishing processes for data breach notifications, and ensuring proper data erasure procedures.
Vedashree specifically highlighted the importance of the consent manager concept introduced in the Act. These registered entities will serve as single points of contact for individuals to manage their consent preferences across multiple platforms, potentially revolutionizing how consent is managed in digital ecosystems.
The Road Ahead for Indian Businesses
As India moves toward full implementation of the DPDP Act, businesses across sectors face the urgent task of compliance. The transition requires not just technical solutions but a fundamental cultural shift in how organizations approach data handling and privacy.
The panelists agreed that early adopters who proactively implement robust data protection frameworks will gain competitive advantages through increased consumer trust and reduced regulatory risks. They emphasized that data protection should no longer be viewed as a compliance burden but as a strategic imperative that can drive business value and customer confidence.
With the Data Protection Board expected to be constituted soon, the clock is ticking for Indian businesses to align their operations with the new data protection paradigm. The consensus among experts is clear: waiting for enforcement actions to begin compliance efforts would be a costly strategic mistake for any organization handling personal data in India.
