Navigating the new data privacy era with DPDP Rules, 2025

Navigating the new data privacy era with DPDP Rules, 2025

The Rules set a clear framework for personal data management, turning compliance into a cultural shift toward transparency, accountability, and responsible data use.


In brief

  • The finalization of the Digital Personal Data Protection (DPDP) Rules marks a pivotal moment in India’s digital and regulatory landscape.
  • Under the new Rules, organizations must unify data systems, establish strong governance for AI and investigations, and shift to consent-based customer engagement.
  • The Rules could be an opportunity for organizations to embed privacy into design, strengthen governance, and build trust by proactively redesigning data ecosystems.

India has entered a defining phase in its technology evolution journey. With the release of the Digital Personal Data Protection (DPDP) Rules, the country now has a clearer and more structured framework for how personal data must be collected, used, stored and protected. For businesses, this is not just a compliance requirement but a fundamental shift in how data-driven decisions will be made in the future.

The Rules operationalise the Digital Personal Data Protection Act, 2023 and set strong expectations around transparency, accountability and responsible data management. At a time when billions of digital interactions take place every day, the DPDP Rules encourage organisations to reassess their systems, processes and even their culture.

While the provisions of the personal data protection framework are clear, the impact on operations raises deeper questions. Many organisations rely on siloed and fragmented data systems that make data privacy compliance difficult. This will accelerate the need for unified consent-based data management frameworks that consolidate customer information, consent records and retention schedules. Without this integration, responding to requests for data access or deletion becomes slow and increases the risk of errors.

There are also implications for internal investigations and audits. Compliance and forensic teams must take steps to comply with the Digital Personal Data Protection Rules by ensuring that data collected during investigations does not unintentionally capture personal information without a clear legal basis. Segregating personal and professional data will become a priority, especially with hybrid work models where employees often use the same devices for multiple purposes.

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Impact of DPDP on AI and data governance

Data privacy laws may also influence the pace of AI adoption. Since AI systems depend on large volumes of data, organisations will need stronger governance around the use of training data, consent, anonymisation and model risk assessments. This is not a barrier to innovation. Instead, it ensures that AI systems rely on authorised and ethically sourced data. At the same time, tighter controls on personal data may reduce unsolicited sales calls, nudging organisations toward consent-based management and trust-driven customer engagement.
 

Three major takeaways for organizations:

  • The need for unified and clean data management systems will become urgent
    Fragmented databases and inconsistent data practices will make compliance slow, risky and costly.
  • AI and investigations will require clearer guardrails
    Companies must ensure that personal data used in audits, AI models and forensic reviews has a clear legal basis and remains properly segregated.
  • Customer outreach will need to shift toward permission-based engagement
    Restrictions on personal data use may reduce unsolicited calls and require organisations to build trust through transparent communication and value-driven interactions.

Ultimately, the DPDP Rules present an opportunity rather than an obstacle. They allow organisations to redesign data ecosystems, embed privacy into product and process design and demonstrate to customers that their information is handled with care. Companies that begin preparing now by strengthening AI governance under the DPDP framework, reworking data flows and building a privacy-aware culture will be better placed to earn trust and minimise regulatory risks.

Gurjeet S Chahal, Director, Forensics, EY India, has also co-authored this article.

Summary

India’s technology landscape is evolving with the introduction of the DPDP Rules, which set clear expectations for how personal data is collected, stored and used. Beyond compliance, the Rules call for a shift toward greater transparency and accountability. Organisations need to unify fragmented data systems, strengthen governance for AI and investigations, and move toward consent-based customer engagement. The framework also shapes AI adoption by emphasising ethical data practices and risk assessments. Together, these changes offer businesses an opportunity to redesign data ecosystems, embed privacy into operations, and build trust while reducing regulatory risk.

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