Data PrivacyData Privacy Day: What Does It Mean For India?

Data Privacy Day, observed annually on January 28th, serves as a crucial reminder of the importance of safeguarding personal information in our increasingly digital world. This day commemorates the signing of Convention 108 by the Council of Europe in 1981, which was the first legally binding international treaty addressing privacy and data protection.

Since its inception in Europe, Data Privacy Day has evolved into a global initiative, now observed in over 100 countries, including India.

In the Indian context, Data Privacy Day has taken on heightened significance with the enactment of the Digital Personal Data Protection Act (DPDPA) 2023. This legislation marks a watershed moment in India’s journey towards establishing a robust data protection framework, aligning the country more closely with global privacy standards while addressing unique local needs.

The observance of Data Privacy Day in India now serves as a platform for raising awareness about the DPDPA and its implications for various stakeholders in the data ecosystem.

Implications for Data Principals

Under the DPDPA 2023, the term “data principal” refers to the individual to whom the personal data relates, analogous to the concept of “data subject” in the EU’s General Data Protection Regulation (GDPR).

The Act bestows upon data principals a suite of rights that significantly enhance their control over personal information:

1. Right to Access and Information: Data principals can request comprehensive information about their personal data being processed, including details of processing activities and the identities of data processors and fiduciaries involved
2. Right to Correction and Erasure: The Act grants data principals the ability to correct inaccurate or misleading data, update incomplete information, and request the erasure of personal data that is no longer necessary for the purpose it was collected
3. Right to Grievance Redressal: Data principals are entitled to accessible mechanisms for addressing grievances related to their personal data
4. Right to Nominate: In a unique provision, the DPDPA allows data principals to nominate another individual to exercise their rights in the event of death or incapacity
5. Right to Data Portability: Although not explicitly mentioned in the DPDPA, this right, common in global data protection laws, allows data principals to obtain and transfer their personal data between different service providers.

These rights collectively empower data principals to take an active role in managing their digital footprint. However, with these rights come certain responsibilities. Data principals are obligated to provide authentic and verifiable information, refrain from impersonation, and avoid suppressing material information when submitting personal data

These responsibilities are designed to maintain the integrity of the data protection ecosystem.

Obligations for Data Fiduciaries and Significant Data Fiduciaries

The DPDPA 2023 introduces the concept of “data fiduciaries,” entities that determine the purpose and means of processing personal data.

The Act imposes stringent obligations on these entities to ensure responsible data handling:

1. Consent-Based Processing: Data fiduciaries must obtain valid, informed, and unambiguous consent from data principals before processing their personal data.
2. Notice and Purpose Limitation: Clear notices must be provided to data principals regarding the processing of their data, including details about the data collected and its intended use.
3. Data Minimization and Security Measures: The Act mandates that data fiduciaries collect only necessary data and implement robust technical and organizational measures to protect it from breaches.
4. Grievance Redressal and Breach Reporting: Data fiduciaries must establish mechanisms for addressing data-related grievances and promptly report any data breaches to the Data Protection Board and affected individuals.

The DPDPA also introduces the concept of Significant Data Fiduciaries (SDFs), entities that handle large volumes of data or data that poses significant risks.

SDFs face additional obligations:

1. Appointment of Data Protection Officer: SDFs must appoint a Data Protection Officer responsible for ensuring compliance with the DPDPA.
2. Independent Audits and Impact Assessments: Regular audits by independent data auditors and annual Data Protection Impact Assessments are mandatory for SDFs.
3. Algorithmic Fairness and Data Localization: SDFs must ensure non-discriminatory algorithms and comply with data localization requirements as specified by the Government.

These obligations collectively create a robust framework for accountability and responsible data handling, particularly for entities with significant data processing operations.

A Privacy-Inclined India: The Evolving Landscape

The enactment of the DPDPA 2023 and the subsequent draft DPDP Rules 2025 signify India’s commitment to fostering a privacy-conscious society. This legislative framework aligns India more closely with global data protection standards while addressing unique local needs.

The draft DPDP Rules 2025 further refine the operational aspects of the DPDPA, introducing specific requirements for consent management, security safeguards, and data breach notifications.

The draft rules to date have focused on providing clarity regarding compliance requirements and facilitating the practical implementation of the Act. However, the final rules should comprehensively address various facets of privacy to ensure a robust framework that effectively protects individual rights and fosters accountability among data fiduciaries.

This digital first approach to regulatory oversight is innovative and aligns with India’s broader digital transformation goals.

As a data privacy professional, I anticipate that these areas will require further clarification and refinement through ongoing stakeholder consultations and expert inputs.

Conclusion

Data Privacy Day in India, viewed through the lens of the DPDPA 2023 and the draft DPDP Rules 2025, represents a pivotal moment in the country’s data protection journey. It serves as a reminder of the rights and responsibilities of data principals, the obligations of data fiduciaries, and the evolving regulatory landscape that aims to balance innovation with privacy protection.

As India continues to navigate the complexities of the digital age, the emphasis on data privacy will remain a critical component of its legislative and economic landscape. The success of this privacy-inclined approach will depend on effective implementation, continuous refinement of regulations, and a collective commitment from all stakeholders to uphold the principles of data protection.

It is incumbent upon legal professionals, policymakers, and industry leaders to collaborate in shaping a privacy-respecting digital ecosystem that fosters trust, innovation, and economic growth.

The phrase “RespectData”, which I have been repeatedly saying for many years” when implemented effectively, has the potential to serve as a guiding beacon in the realm of data privacy.

Team AMLEGALS 

For any queries or feedback, feel free to connect to mridusha.guha@amlegals.com