The Digital Personal Data Protection Act, 2023 (DPDP Act) was passed by the Indian Parliament and received Presidential assent in August 2023. Although notified in the Gazette, it is not yet in force as the Central Government has not issued the commencement notification. Meanwhile, the Ministry of Electronics and Information Technology (MeitY) released draft Digital Personal Data Protection Rules, 2025 for public consultation. These steps mark India’s shift from broad privacy principles to a detailed legal framework. Businesses, especially large corporate groups, are preparing to comply with the new requirements.
Key Provisions of the DPDP Act
The DPDP Act defines entities that process personal data as Data Fiduciaries. Each entity independently responsible for data processing must comply with obligations such as notice, consent management, purpose limitation, data security, grievance redressal, and breach reporting. Sectoral audits, risk assessments, and maintaining Records of Processing Activities (RoPA) will become mandatory. Compliance will evolve from a legal or IT task to a core operational responsibility.
Challenges for Corporate Groups
Corporate groups often consist of multiple subsidiaries and verticals with distinct systems and customers. Under the Act, each legal entity qualifies as a separate Data Fiduciary. This fragmentation complicates compliance since every entity must independently meet fiduciary duties. Balancing central oversight with local execution is a key challenge. A unified approach is needed to avoid duplication and gaps.
Federated Privacy Governance Model
A federated governance model is recommended. A Central Privacy Office or Data Protection Governance Committee sets policies and standards. Subsidiaries appoint Privacy Leads or Data Stewards to implement policies locally. This model combines centralised policy-making with decentralised operational control. It ensures legal compliance while respecting business diversity.
Statements of Applicability and Sectoral Compliance
The Act empowers regulators to impose sector-specific rules. A Statement of Applicability (SoA) helps tailor privacy controls to each entity’s risk profile and business functions. SoAs ensure proportional compliance and prevent unnecessary burdens. They map applicable controls, exemptions, and responsibilities for each subsidiary or vertical.
Intra-Group Data Processing Agreements
Data sharing within corporate groups is not exempt from legal formalities. Each intra-group transfer requires a Data Processing Agreement (DPA) specifying roles, purposes, security measures, and breach protocols. This ensures accountability and traceability of personal data flows across entities.
Technology and Standardised Toolkits
Shared toolkits promote consistency and efficiency. These include unified data inventories, risk assessment templates, incident reporting systems, and training modules. Flexibility is essential to adapt tools to entity-specific systems and processes.
Accountability and Monitoring
Accountability must be institutionalised horizontally and vertically. Privacy Leads report to the group office and entity leadership. Regular audits, compliance reporting, and incident escalation processes are vital. Dashboard systems can track key metrics like breach responses and training completion.
Handling Data Principal Rights and Grievances
Each entity must respond to requests for data access, correction, erasure, or consent withdrawal. Shared platforms can route requests effectively while maintaining audit trails. Group-level grievance officers work alongside subsidiary contacts to manage complaints promptly.
Implementation Roadmap
Implementation follows phased steps – 1. Foundation Setting – Establish central privacy office and draft policies. 2. Entity Rollouts – Conduct data mapping, create RoPA, finalise SoAs, and deploy tools. 3. Testing and Monitoring – Run breach simulations, audits, and refine controls. 4. Continuous Improvement – Integrate privacy into governance, monitor regulation, and train staff regularly.
Questions for UPSC:
- Critically discuss the challenges and benefits of implementing a federated data protection governance model in large corporate groups under the Digital Personal Data Protection Act, 2023.
- Examine the role of intra-group Data Processing Agreements in ensuring accountability and compliance within conglomerates under data protection laws.
- Analyse the impact of sector-specific privacy regulations on business operations and data governance frameworks in India, and estimate the challenges regulators face in enforcement.
- Point out the significance of phased implementation and continuous monitoring in establishing effective data protection mechanisms within organisations.
