India’s data protection rules: a timeline for foreign companies
What applies now, what starts next month, and what must be ready by May 2027
Yes, even if you have no office in India
Three dates to plan around
Your day-to-day duties
- Clear notice listing the data you collect and why, in plain language
- Consent that is as easy to withdraw as it was to give
- Security safeguards: encryption, access control, and logs kept for at least one year
- Erase data once its purpose endsLarge e-commerce, gaming and social media platforms: after 3 years of inactivity, with 48 hours’ warning
- Children under 18: verifiable parental consent first
The 72-hour clock
- Tell affected users without delay: what happened, the likely impact and what they can do
- Send the Board an initial intimation straight away
- Your overseas team needs an India-ready playbook
Data can leave India, with limits
- Transfers abroad are allowed by default
- The government can restrict specific countries by notification
- Sector regulators such as RBI may still require data to stay in India
- If you are named a Significant Data Fiduciary: an India-based DPO, a yearly impact assessment and an audit
Penalties of up to ₹250 crore
Your plan before May 2027
Delhi Legal Company
India's Digital Personal Data Protection Act, 2023 and the DPDP Rules, 2025 (notified on 13 November 2025) apply not only to companies in India but also to foreign companies that process personal data in connection with offering goods or services to people in India. The Rules come into force in three phases: the Data Protection Board provisions on 13 November 2025, the consent manager framework on 13 November 2026, and the core obligations for businesses, including notice, consent, security, breach reporting, data rights, children's data and cross-border transfers, on 13 May 2027. Penalties can reach ₹250 crore per instance. With seven months to go, foreign companies should be mapping data, redesigning notices and consent, updating processor contracts and building breach and rights-request processes now.
1Does the DPDP Act apply to your foreign company?
The DPDP Act applies to the processing of digital personal data, meaning data about an identifiable individual collected in digital form, or collected offline and later digitised. Its territorial reach has two limbs:
- Processing within India, whoever the data fiduciary is and wherever the individuals are located; and
- Processing outside India, if it is in connection with any activity related to offering goods or services to data principals within India (Section 3(b)).
A foreign company does not need an Indian entity, office or server to be covered. A US software provider selling subscriptions to Indian customers, a European e-commerce site shipping to India, or a Singapore travel platform taking bookings from Indian users can all fall within scope.
1.1 Common situations for foreign groups
| Situation | Likely position under the DPDP Act |
|---|---|
| Foreign company selling online to Indian consumers | In scope Processing outside India in connection with offering goods or services in India. |
| Indian subsidiary handling Indian customers or employees | In scope Processing within India. |
| Parent company receiving HR data of Indian employees from its subsidiary | Usually in scope The subsidiary's transfer and the parent's role must be analysed; the subsidiary remains responsible as a data fiduciary. |
| Indian captive centre or outsourcing provider processing data of foreign customers under a contract with a foreign company | Largely exempt The Act exempts processing in India of non-residents' data under a contract with a person outside India, but certain security and breach duties may still apply. |
| Foreign company with Indian visitors but no offering targeted at India | Grey area Depends on whether goods or services are offered to people in India; assess carefully. |
| Data made publicly available by the individual, or processed for purely personal purposes | Outside scope Subject to the conditions in the Act. |
Why this matters for foreign-owned Indian companies: the Indian subsidiary of a foreign group is almost always a data fiduciary in its own right for employee, customer and vendor data. Group-wide privacy programmes need an Indian layer, and the subsidiary's board should own it.
2Fiduciary, processor or significant data fiduciary?
The Act uses its own vocabulary. Getting your role right determines which obligations apply.
Data principal
The individual to whom the data relates. For children and persons with disabilities, this includes the parent or lawful guardian.
Data fiduciary
The person who determines the purpose and means of processing, similar to a "controller" under the GDPR. It carries primary responsibility for compliance.
Data processor
A person who processes data on behalf of a fiduciary, such as a cloud, payroll or CRM provider. The Act places obligations mainly on the fiduciary, which must engage processors only under a valid contract.
Significant data fiduciary
A fiduciary notified by the Government based on volume and sensitivity of data, risk to individuals, and national interest factors. It carries additional duties.
Consent manager
An Indian company registered with the Data Protection Board that gives individuals a platform to give, manage, review and withdraw consent across fiduciaries.
Data Protection Board
The independent adjudicating body that inquires into breaches and imposes penalties. Its processes are designed to be digital by default.
A key principle runs through the Act: the data fiduciary is responsible for compliance irrespective of any agreement to the contrary, including for processing carried out by its processors. Outsourcing processing does not outsource liability.
3The three phases of the DPDP Rules
The DPDP Rules, 2025 were notified on 13 November 2025 (G.S.R. 846(E)) and come into force in three stages. The relevant provisions of the Act are brought into force alongside them.
- Phase 1 — 13 Nov 2025
Institutional set-up. Definitions and the rules on the Data Protection Board, its composition, the appointment of its members and its functioning as a digital office came into force. In 2026 the Government began the process of appointing the Chairperson and members. No processing obligations applied to businesses in this phase. - Phase 2 — 13 Nov 2026
Consent managers. Rule 4 and the First Schedule apply. Indian companies meeting the eligibility conditions, including a minimum net worth of ₹2 crore, can register with the Board as consent managers and become subject to its oversight. - Phase 3 — 13 May 2027
Core obligations. Rules 3 and 5 to 16, 22 and 23 apply: notice, security safeguards, breach intimation, retention and erasure, contact details, children and persons with disabilities, exemptions, significant data fiduciary duties, data principal rights, cross-border transfers, research and the power to call for information. Section 43A of the Information Technology Act, 2000 and its rules on sensitive personal data are replaced.
Phase 2 does not mean you must use a consent manager. Businesses can continue to collect consent directly. But consent managers will start operating from November 2026, and fiduciaries should be ready to recognise consent given or withdrawn through them once the core obligations apply.
4What applies from 13 May 2027
4.1 Lawful grounds: consent or legitimate uses
Personal data may be processed only for a lawful purpose with the individual's consent, or for certain legitimate uses specified in the Act. Legitimate uses are narrower than the GDPR's "legitimate interests". They include data voluntarily provided for a specified purpose without objection, employment purposes, compliance with law or court orders, medical emergencies and certain state functions. Most commercial processing, including marketing and analytics, will rely on consent.
4.2 Consent requirements
Consent must be free, specific, informed, unconditional and unambiguous, given by a clear affirmative action, and limited to the data necessary for the specified purpose. It must be as easy to withdraw as to give. Pre-ticked boxes, bundled consents and consent buried in terms and conditions will not work.
4.3 Notice requirements (Rule 3)
Every request for consent must be accompanied by, or preceded by, a notice that is:
- presented independently of other information, and understandable on its own;
- in clear and plain language, with an option to read it in English or any language in the Eighth Schedule to the Constitution;
- itemised, listing the personal data and the specific purpose and description of the goods or services enabled by the processing;
- accompanied by a communication link or other means to withdraw consent as easily as it was given, to exercise rights, and to complain to the Data Protection Board.
For data collected before the Act's commencement on the basis of consent, a notice must be given as soon as reasonably practicable.
4.4 Reasonable security safeguards (Rule 6)
Every fiduciary must protect personal data with reasonable security safeguards, including at minimum:
- encryption, obfuscation, masking or virtual tokens;
- access controls over the computer resources used;
- visibility through logs, monitoring and review to detect unauthorised access;
- measures for continued processing after a compromise, including backups;
- retention of logs and data for detection and investigation, for at least one year; and
- appropriate provisions in contracts with processors requiring them to take these safeguards.
4.5 Accuracy, purpose limitation and contact point
Fiduciaries must ensure accuracy and completeness where data is used to make decisions or is shared with another fiduciary, must erase data once the purpose is served (subject to legal retention), and must prominently publish the business contact details of a person who can answer questions about processing, or of the Data Protection Officer where one is required.
5Personal data breaches: the 72-hour rule
Unlike the GDPR, the DPDP framework requires reporting of every personal data breach, with no materiality threshold. Under Rule 7:
- Inform affected individuals without delay. In a concise, clear and plain manner, describe the breach, its likely consequences, the mitigation measures taken, safety measures they can take, and contact details for queries.
- Inform the Data Protection Board without delay. Give an initial description, including nature, extent, timing, location and likely impact.
- Send a detailed report within 72 hours. Cover updated facts, circumstances and reasons, mitigation, the findings on the person responsible, remedial measures and reports given to individuals. The Board may allow more time on a written request.
Two regulators, two clocks. Cyber incidents in India must also be reported to CERT-In within six hours under its 2022 directions. Sectoral regulators such as the RBI, SEBI and IRDAI have their own reporting rules. Build a single incident playbook that meets all of them.
6Data principal rights and grievances
Individuals have the right to:
- access a summary of their data, the processing activities and the identities of other fiduciaries and processors with whom it has been shared;
- correction, completion, updating and erasure of their data;
- grievance redressal, which must be exhausted before approaching the Board; and
- nominate another person to exercise their rights in case of death or incapacity.
Fiduciaries must publish on their website or app the means by which individuals can make requests, and the identifiers they may need to provide. Grievances must be answered within a reasonable period, not exceeding 90 days under the Rules. Foreign companies should consider whether their global data subject request tools meet these Indian requirements and timelines, and whether they support nomination.
7Retention, erasure and logs
The Act requires erasure once the purpose is no longer served. The Rules give specific retention periods for large platforms in the Third Schedule:
| Class of data fiduciary | Rule |
|---|---|
| E-commerce entities with at least 2 crore registered users in India | Erase personal data if the user has not engaged for three years, subject to legal retention |
| Online gaming intermediaries with at least 50 lakh registered users in India | Same three-year inactivity rule |
| Social media intermediaries with at least 2 crore registered users in India | Same three-year inactivity rule |
| All fiduciaries in these classes | Notify the user at least 48 hours before erasure, so they can log in or engage to prevent it |
| All fiduciaries and processors | Retain personal data, associated traffic data and processing logs for at least one year for specified state purposes |
Data retention also needs to be reconciled with other Indian laws, such as the Companies Act, tax laws, labour laws and sectoral rules, which require some records to be kept for eight years or more.
8Children's data
A "child" under the DPDP Act is anyone below 18 years, a higher age than most other privacy laws. Before processing a child's data, a fiduciary must obtain verifiable consent of a parent or lawful guardian (Rule 10), using reliable identity and age details already available or a virtual token issued by an authorised entity, such as a government-linked digital locker service. Tracking, behavioural monitoring and targeted advertising directed at children are prohibited.
The Rules exempt certain classes of fiduciaries and purposes from some of these restrictions, such as clinical establishments, educational institutions, childcare providers and the protection of children's safety. Foreign edtech, gaming, social media and consumer platforms with Indian users under 18 will need to redesign onboarding and age-assurance flows.
9Significant data fiduciaries
The Government can notify any fiduciary or class of fiduciaries as a significant data fiduciary (SDF). Large global platforms, financial services providers and companies handling sensitive data at scale should assume they may be designated. SDFs must:
- appoint a Data Protection Officer based in India, who represents the SDF and reports to its board;
- appoint an independent data auditor;
- carry out a data protection impact assessment and audit every 12 months and report significant findings to the Board;
- conduct due diligence on algorithmic software to verify that it does not pose a risk to individuals' rights; and
- ensure that personal data specified by the Government on the recommendation of a committee, and related traffic data, is not transferred outside India.
For a foreign company designated as an SDF, the India-based DPO requirement effectively creates a local presence obligation. Groups with an Indian subsidiary can often place this role there; others may need to establish one. See our pages on wholly-owned subsidiaries and liaison offices.
10Cross-border transfers
The DPDP Act takes a permissive approach to international transfers. Section 16 allows transfers to any country unless the Government restricts transfers to a particular country by notification, a "negative list" model. No country has been notified so far.
Rule 15 adds that transfers by a fiduciary processing data in India, or in connection with offering goods or services to people in India, are subject to requirements the Government may specify by general or special order regarding making that data available to a foreign state or its agencies. In addition:
- stricter sectoral localisation rules prevail, for example RBI rules requiring payment system data to be stored in India;
- SDFs may be required to keep specified data in India; and
- there is no requirement for standard contractual clauses or adequacy decisions, unlike the GDPR.
For most foreign groups, intra-group transfers of Indian customer and employee data can continue, but they should be documented, secured and covered by contracts, and monitored for any future Government orders.
11DPDP vs GDPR: what a GDPR programme does not cover
Many foreign companies assume their GDPR compliance will carry them through. It helps, but there are important differences.
| Topic | GDPR | DPDP Act and Rules |
|---|---|---|
| Scope of data | Personal data in any form | Digital personal data only (including digitised offline data) |
| Lawful bases | Six, including legitimate interests | Consent or limited "legitimate uses"; no general legitimate interests basis |
| Sensitive data categories | Special category data with extra rules | No separate categories; sensitivity relevant to SDF designation |
| Age of a child | 13 to 16 depending on member state | Under 18; verifiable parental consent required |
| Breach notification | To the regulator within 72 hours if risk; to individuals if high risk | All breaches to the Board and to affected individuals; detailed report within 72 hours |
| Cross-border transfers | Adequacy, SCCs or other safeguards required | Permitted unless a country is blacklisted, subject to sectoral rules and Government orders |
| Representative | EU representative for non-EU controllers | No general representative; India-based DPO for SDFs |
| Consent managers | No equivalent | Registered Indian consent managers |
| Fines | Up to 4% of global turnover or EUR 20 million | Fixed maximums per instance, up to ₹250 crore |
| Compensation for individuals | Right to compensation | No compensation mechanism under the Act; penalties go to the Government |
| Data principal duties | None | Individuals must not file false or frivolous complaints; penalty up to ₹10,000 |
Practical approach: build an "India delta" on top of your global programme rather than a separate system. Focus on consent (because there is no legitimate interests basis), age 18, universal breach reporting, Indian language notices and the 90-day grievance timeline.
12Penalties and enforcement
The Schedule to the DPDP Act sets maximum penalties per instance of breach. The Board decides the actual amount based on the nature, gravity and duration of the breach, the type of data, repetition, any gain or loss avoided, mitigation and proportionality.
| Breach | Maximum penalty |
|---|---|
| Failure to take reasonable security safeguards to prevent a personal data breach | ₹250 crore |
| Failure to notify the Board or affected individuals of a breach | ₹200 crore |
| Breach of obligations relating to children | ₹200 crore |
| Breach of additional obligations of significant data fiduciaries | ₹150 crore |
| Breach of a voluntary undertaking accepted by the Board | Up to the penalty applicable to the original breach |
| Any other breach of the Act or Rules | ₹50 crore |
| Breach of duties by a data principal | ₹10,000 |
The Board can also accept voluntary undertakings, and on its reference the Government can, in certain cases of repeated breaches, direct that public access to a fiduciary's platform in India be blocked. Appeals from the Board lie to the Telecom Disputes Settlement and Appellate Tribunal.
13Your month-by-month roadmap to May 2027
Seven months is not long for a programme that touches product design, IT, HR, legal, marketing and vendors. A realistic plan for a foreign company with Indian users or an Indian subsidiary:
| Period | Workstream | Key outputs |
|---|---|---|
| Oct – Nov 2026 | Scoping and governance | Applicability assessment; roles (fiduciary or processor) for each entity; executive sponsor; India privacy lead; budget |
| Nov – Dec 2026 | Data mapping | Inventory of Indian personal data: sources, purposes, lawful basis, systems, vendors, transfers, retention; legacy data plan |
| Dec 2026 – Jan 2027 | Gap assessment | Gap report against the Act and Rules; SDF risk assessment; prioritised remediation plan |
| Jan – Mar 2027 | Notices and consent | Itemised notices in English and relevant Indian languages; consent capture and withdrawal; consent records; readiness to work with consent managers |
| Jan – Mar 2027 | Contracts | Updated processor agreements, intra-group data transfer agreements and customer terms |
| Feb – Apr 2027 | Security and breach | Security controls aligned with Rule 6; one-year log retention; incident playbook covering the Board, individuals, CERT-In and sector regulators |
| Feb – Apr 2027 | Rights and grievances | Request portal; identity verification; 90-day workflow; nomination; published contact details |
| Mar – Apr 2027 | Children and retention | Age assurance and parental consent flows; retention schedules; erasure and 48-hour notice processes where applicable |
| Apr – May 2027 | Training and testing | Staff training; breach simulation; internal audit; board sign-off |
| From 13 May 2027 | Operate and monitor | Ongoing compliance; monitoring of Board guidance, SDF notifications and cross-border orders |
14Contracts with Indian subsidiaries, vendors and clients
Because the fiduciary remains responsible for its processors, contracts are a central compliance tool. Foreign groups should review:
- Intra-group data agreements between the Indian subsidiary and the parent or shared service centres, setting out roles, purposes, security, breach notification and assistance with rights requests.
- Processor agreements with cloud, HR, payroll, CRM, marketing and analytics vendors, including Rule 6 safeguards, breach notice to the fiduciary, deletion on termination, audit rights and sub-processor controls. Our vendor compliance service can help.
- Customer and platform terms, privacy notices and cookie or tracking disclosures for Indian users.
- Technology and SaaS contracts where the foreign company acts as a processor for Indian business customers; these customers will ask for DPDP clauses. See technology licensing agreements and software and digital content protection.
- Employment documents for Indian staff, including employee privacy notices and policies; payroll data handling should align with our payroll processing standards.
- M&A and investment documents, adding DPDP representations, warranties and due diligence on data practices.
15How Delhi Legal Company can help
Delhi Legal Company helps foreign companies and their Indian subsidiaries prepare for the DPDP framework, alongside the corporate, tax and regulatory compliance they already manage in India.
16Conclusion
India's data protection regime is no longer a future concern. The institutional framework is in place, consent managers arrive in November 2026, and the obligations that matter most to businesses apply from 13 May 2027. Its reach is deliberately broad: any foreign company that offers goods or services to people in India, and every Indian subsidiary of a foreign group, needs to be ready.
The good news is that the DPDP framework is simpler than the GDPR in several respects, and global privacy programmes provide a strong starting point. The work lies in the India-specific details: consent without a legitimate interests fallback, an age of 18, universal breach reporting, plain-language and Indian-language notices, and contracts that keep processors in line. Companies that start now will be ready on time; those that wait for the Board's first enforcement actions will be rebuilding under pressure.
Book a DPDP readiness review
We will assess whether and how the DPDP Act applies to your business, map your Indian data flows and give you a prioritised plan to 13 May 2027.
Call +91-9599332456 | Email info@delhilegalcompany.com
?Frequently asked questions
Does the DPDP Act apply to a foreign company with no presence in India?
Yes, if it processes digital personal data outside India in connection with offering goods or services to individuals in India. No Indian entity, office or server is needed for the Act to apply.
When do the main DPDP obligations apply?
From 13 May 2027. This includes notice and consent, security safeguards, breach intimation, data principal rights, children's data, retention, significant data fiduciary duties and cross-border transfer provisions.
What happens on 13 November 2026?
The consent manager framework under Rule 4 comes into force. Eligible Indian companies can register with the Data Protection Board as consent managers. Businesses are not required to use them, but should prepare to recognise consents managed through them.
How quickly must a data breach be reported?
Affected individuals and the Data Protection Board must be informed without delay, and a detailed report must be submitted to the Board within 72 hours, unless the Board allows more time. All personal data breaches must be reported, not only high-risk ones.
Can we transfer Indian personal data to our parent company abroad?
Generally yes. The Act permits transfers to any country unless the Government restricts a specific country. Sectoral localisation rules, any Government orders under Rule 15, and specific requirements for significant data fiduciaries must also be followed.
Does our GDPR programme make us compliant with the DPDP Act?
Not entirely. Key differences include the absence of a legitimate interests basis, the definition of a child as anyone under 18, mandatory reporting of all breaches, Indian-language notice options and the consent manager framework.
Do we need to appoint a Data Protection Officer in India?
Only if you are notified as a significant data fiduciary, in which case the DPO must be based in India. Other fiduciaries must publish the contact details of a person who can answer questions about processing.
What are the maximum penalties?
Up to ₹250 crore per instance for failing to take reasonable security safeguards, up to ₹200 crore for failure to notify breaches or for breaches of obligations relating to children, up to ₹150 crore for SDF breaches and up to ₹50 crore for other breaches.
Does the Act apply to employee data?
Yes. Employee data is personal data. Processing for employment purposes is a recognised legitimate use, but security, retention, breach and rights obligations still apply.
What should a foreign company do first?
Confirm whether and how the Act applies, identify the entities acting as data fiduciaries, and map the Indian personal data you process. Everything else, from notices to contracts, depends on that map.
Related reading from Delhi Legal Company
Disclaimer: This article reflects the position as at 13 October 2026 and is provided for general information only. It does not constitute legal advice or create a professional relationship. The Data Protection Board is still being constituted, and further guidance, notifications on significant data fiduciaries and orders on cross-border transfers may follow; please verify the current text of the Act and the Rules and consult a qualified professional before acting. In accordance with the rules of the Bar Council of India, this content is not intended as advertisement or solicitation.