As India prepares to fully operationalise the Digital Personal Data Protection (DPDP) Act, a landmark legislation governing the use and processing of personal data, questions are intensifying around its economic impact on startups. While the law aims to strengthen user rights and enhance data security standards across the digital economy, experts warn that compliance costs could become disproportionately heavy for young, resource-constrained companies.
The DPDP Act—passed in August 2023—marks India’s first comprehensive data privacy framework, aligning the country with global standards such as the EU’s GDPR. But the implementation phase, expected to unfold through 2025, is already sparking
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