What Does The Data Protection Act 2023 Mean For Businesses?




Businesses increasingly rely on personal data to deliver digital services, personalise customer experiences and manage their daily operations. This growing dependence can also increase privacy and security risks. India’s Digital Personal Data Protection Act, 2023 (DPDP Act) establishes a framework for lawful processing of digital personal data and gives organisations greater responsibility for protecting it.

What is the Data Protection Act 2023?

The Digital Personal Data Protection Act 2023 (DPDP Act) governs how organisations handle digital personal data. The Act requires organisations to have a lawful basis for processing personal data, provide adequate notice, respect the rights of Data Principals and implement appropriate security safeguards.

The Act follows earlier discussions around the Data Privacy Bill 2023 and establishes a legislative framework for protecting digital personal data. The Government notified the Digital Personal Data Protection Rules, 2025, in November 2025, with implementation following a phased approach.

Who is affected by the data protection requirements?

The requirements can apply to organisations in India and organisations outside India when they process digital personal data in connection with offering goods or services to individuals in India.

As a result, data protection is relevant across sectors, including financial services, healthcare, retail, technology and e-commerce.
What responsibilities do organisations have when handling personal data?

Businesses must:
  • Handle personal data for lawful and well-defined purposes.
  • Clearly explain how personal data is collected and processed.
  • Implement appropriate measures to protect personal data.
  • Protect personal data against unauthorised processing and data breaches.
  • Retain personal data only for as long as necessary to fulfil the purpose for which it was collected.
  • Enable Data Principals to exercise their applicable rights and raise grievances.

How can businesses prepare for data protection compliance?

To comply with data protection requirements, businesses should first map personal data across endpoints, applications, cloud environments and storage systems. They should then analyse data flows, review access controls, strengthen security monitoring and establish procedures for handling data-related incidents.

A combination of data discovery, data classification, endpoint protection, data loss prevention and threat detection can help organisations strengthen their privacy and security posture.

Conclusion

The Data Protection Act 2023 makes responsible personal data management a major priority for organisations. Businesses that combine effective compliance processes with robust cybersecurity measures can minimise privacy-related risks, strengthen resilience and build customer trust.

Find out how Seqrite can help your organisation strengthen its data protection and cybersecurity practices.

Learn more about Seqrite’s approach to data protection and cybersecurity.

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