Navigating the DPDP Act: Key implications and future trends for businesses

By Piyush Mehta, CEO, Data Dynamics

The other day, I was checking out at an online store, adding a couple of last-minute items to my cart. Just as I was about to complete the purchase, a prompt popped up: “Do you consent to share your data?” It’s one of those things I’ve seen a hundred times, and, like most people, I usually just click “accept” and move on. But today all of us are thinking about the implication of this “accept,” and that’s a big change —what actually happens to my data? Where does it go? Who’s handling it, and how secure is it? 

For businesses, these questions are at the heart of a new way of handling data. Protecting personal information is no longer about just ticking regulatory boxes; it’s about building trust and resilience in every aspect of what they do. India’s Digital Personal Data Protection (DPDP) Act embodies this shift, placing data governance right at the core of success in today’s digital world. For companies, the Act is a call to action—a chance to lead in building a culture rooted in transparency, accountability, and a strong data-driven competitive edge. With 2025 on the horizon, here’s what businesses need to watch for to stay compliant and keep their edge.

1. Shift from data collection to data curation
   Traditionally, data collection has been quantity-focused, with businesses amassing vast datasets for potential insights. The DPDP Act’s emphasis on data minimisation transforms this approach into a curation model. This means integrating techniques like data deduplication and retention policies directly into data workflows to ensure only the most essential data is retained. This change will require enterprises to invest in metadata management and lineage tracking tools to trace each data element’s lifecycle—information crucial for audit trails and compliance reporting.
2. A reframe of consent as a dynamic interaction
   With consent evolving into a dynamic, user-controlled asset, businesses will need to leverage technologies like consent management platforms (CMPs) and identity management systems. This involves deploying microservices-based architectures that support real-time updates to user permissions, enabling changes without extensive downtime or data disruption. Companies might also employ blockchain technology to create tamper-proof consent records, enhancing transparency and trust. For user-facing applications, the focus will shift toward incorporating clear, adaptable consent APIs that allow seamless integration with customer data platforms (CDPs) and marketing automation tools. 
3. Operationalising ‘right to forget’ with real consequences
   Implementing the right to be forgotten requires companies to rearchitect data management systems with data deletion protocols that are prompt, traceable, and verified. This means setting up automated deletion workflows that can trigger deletion across all related systems and applications, including backups, to avoid any data residue. Such workflows could utilise tagging systems for data items earmarked for deletion, with automated alerts to flag any data that’s lingering past the deletion date. Companies may also adopt distributed data architectures and federated databases that facilitate easy traceability of data across different storage systems, ensuring compliance with deletion requests across all data endpoints in real time.

Looking ahead, privacy is poised to become a brand-defining trait. According to me, the DPDP Act will propel companies to elevate privacy from a regulatory requirement to a value proposition. We could see businesses openly demonstrating their privacy commitments—perhaps even through “privacy scorecards” or verified transparency reports—as a way to differentiate themselves. 

And as the Act pushes data closer to home, we’ll likely see India emerge as a hotspot for “data innovation hubs,” where companies can localise data processing and develop tech tailored to regional needs. These hubs could become incubators for technology designed specifically for regional needs, contributing not only to compliance but also to localised product development. 

But perhaps the most exciting shift is what I’d call the move from data protection to “data democracy” – —a framework where organisations treat data with respect that aligns with users’ rights and expectations. This concept goes beyond compliance and delves into the ethical implications of data usage and, most importantly, data control, pushing companies to adopt practices that are respectful and considerate of individuals’ data ownership. Organisations embracing this new standard will lead the way, showing consumers that ethical data use is more than talk. They won’t just follow regulations; they’ll set a higher bar, shaping a digital world where trust and respect drive success.