Why GDPR and India’s DPDPA are game-changers in data privacy
The digital era has made personal data a valuable assets, but it has also exposed individuals to unmatched privacy risks. In response, governments worldwide are enacting strong data protection laws. The European Union’s General Data Protection Regulation (GDPR), implemented in 2018, set the global benchmark for privacy standards and inspired similar legislation across continents. India’s Digital Personal Data Protection Act (DPDPA), passed in 2023, marks a historic step for the world’s most populous democracy, aiming to protect citizens digital privacy while supporting economic growth.
Both GDPR and DPDPA are revolutionary because they shift the power balance: individuals, not companies, are placed at the center of data protection. These laws require organizations to rethink how they collect, use, and share data, making privacy a fundamental right and business priority. For businesses and consumers alike, understanding the differences between these frameworks is crucial for alignment and trust in the digital economy.
Who and what do these laws protect?
GDPR and DPDPA both have extraterritorial reach, applying not only to organizations within their regions but also to those outside if they handle the data of their residents.However, their scope and definitions differ crucially:
GDPR covers all personal data, whether digital or non-digital, as long as it is part of a structured filing system. This means paper records and offline data are included if they are organized systematically.
DPDPA is focused solely on digital personal data, including offline data that is digitized for processing. Purely offline records are excluded, reflecting India’s emphasis on regulating the digital economy.
Another key distinction is in data categorization. GDPR distinguishes between general personal data and “special categories” such as health, religion, or biometrics, which receive extra safeguards. DPDPA applies uniform standards to all digital personal data, without special categories, making compliance simpler but potentially offering less protection for sensitive information.
Understanding consent and legal grounds for data use
Consent is a foundation of both regulations, but the legal basis for data processing is broader under GDPR.
GDPR allows organizations to process data based on six legal grounds: consent, contractual necessity, legal obligation, vital interests, public interest, and legitimate interests. This flexibility means companies don’t always need explicit consent if another legal basis applies.
DPDPA is more consent-centric, making informed, unconditional consent the primary basis for processing. It allows certain “legitimate uses” without consent, such as compliance with law or employment purposes, but does not recognize “legitimate interests” or contractual necessity as individual grounds.
This difference means that businesses in India may need to obtain explicit consent more often than those operating under GDPR, impacting how they design user interfaces and privacy notices.
Cross-border data transfers: what’s allowed and what’s not
International data transfers are a critical issue for global businesses, and the two laws take different approaches.
GDPR allows free data flow within the EU and permits transfers outside the EU only if the recipient country ensures adequate protection or if appropriate safeguards (like Standard Contractual Clauses) are in place.This ensures a high level of protection for EU residents’ data, even abroad.
PDPA gives the Indian government the authority to specify which countries are approved for data transfers. It can exempt certain types of data or countries, making the approach more centralized and potentially restrictive.The government’s discretion plays a significant role in determining where Indian data can go.
Your privacy rights: what you can expect
Both laws empower individuals with rights over their data, but GDPR’s list is more extensive and detailed.
GDPR grants the right to be informed, access, rectification, erasure (right to be forgotten), restriction of processing, data portability, objection, and rights related to automated decision-making and profiling.
DPDPA provides the right to information, access, correction, erasure, grievance redressal, and to nominate someone in case of incapacity or death. Notably, DPDPA does not explicitly provide for data portability or automated decision-making rights, which are significant under GDPR.
Enforcement and penalties: the consequences of non-compliance
Both GDPR and DPDPA enforce compliance with significant penalties, but their structures and amounts differ.
GDPR uses a two-tier penalty system: up to €10 million or 2% of global annual revenue for less severe violations, and up to €20 million or 4% for serious breaches. These fines have led to landmark penalties against major tech companies.
DPDPA imposes specific monetary penalties, ranging from ₹150 crore (approx. $18 million) to ₹250 crore (approx. $30 million) depending on the violation. It also introduces penalties for frivolous complaints, a feature not found in GDPR.
GDPR’s penalties are generally higher, especially for multinational corporations, but DPDPA signals a rigorous enforcement regime that is still evolving as rules are finalized.
Conclusion: Navigating the privacy landscape
GDPR and DPDPA are both landmark laws that reflect the growing importance of data privacy in our digital lives. While they share foundational principles—like accountability, purpose limitation, and individual rights—their differences reflect unique regional priorities and legal traditions. For individuals, these laws offer greater control and transparency. For businesses, they demand a proactive approach to compliance, especially for those operating across borders. As data protection continues to evolve, understanding these frameworks is essential for building trust and staying ahead in the global digital economy.
