Industry leaders on DPDP rules: India enters a new trust era

India’s formal notification of the Digital Personal Data Protection (DPDP) Rules marks one of the most consequential regulatory shifts since the country’s 2011 IT Rules. The new framework gives structure to how personal data must be collected, processed, stored and safeguarded, bringing India closer to global privacy benchmarks while addressing the unique realities of its expanding digital economy.

From startups to large enterprises, and from AI innovators to legacy manufacturers, the Rules are being viewed not merely as a compliance requirement but as a strategic inflection point. Industry leaders across sectors highlight that the DPDP regime is poised to redefine trust, governance, and accountability in ways that will directly influence business models, digital infrastructure and user experience.

A structural shift in India’s technology ecosystem

Karthik Prabhakar, Managing Partner at PeerCapital, describes the DPDP Rules as a watershed moment, “The DPDP Rules create one of the most significant shifts India’s technology ecosystem has seen in a decade. For enterprises, this is not only about risk management. It is about redefining how trust is built in a data-driven economy. The Rules make transparency a baseline expectation and turn privacy into a measure of maturity for every business.

DPDP Rules and their effective implementation will also shift power back to individuals in an ever-expanding digital economy and push companies toward higher standards of governance and accountability. We have already seen this play out in Europe, where GDPR has strengthened user rights and raised the bar for how businesses handle data. India now has the opportunity to follow a similar path, adapted to its own scale and diversity.

From an investor’s view, this moment signals the rise of a new infrastructure layer. Privacy-tech will stand alongside fintech and deeptech as a category that enables sustainable growth. Redacto embodies that transition. They are building the systems that help enterprises stay compliant by design and accountable at scale. The winners in this new phase will be the ones that treat regulation as a roadmap, not a restraint.”

His comments capture a fundamental industry belief: the Rules institutionalise data transparency and empower consumers, while opening new opportunities for privacy-tech innovation.

Clarity for an AI-accelerated future

With India rapidly adopting AI systems across sectors, clarity around data responsibilities has become critical.
Karan Kirpalani, Chief Product Officer at Neysa.ai, emphasises that the DPDP Rules come at the right time, "We welcome the notification of the DPDP Rules, which offer India’s digital ecosystem a clear structure for handling personal data. The framework sets defined expectations for consent, storage, processing and accountability, giving organisations a stable pathway for compliance. The phased rollout allows enterprises to review their data architecture, map information flows and strengthen internal controls in a systematic and uninterrupted manner.

As India moves deeper into AI-led transformation, clarity on data responsibilities becomes central to building secure and dependable digital systems. The DPDP Rules encourage organisations to align security, governance and lifecycle management with the realities of growing AI workloads, distributed compute environments and high-density digital interactions.

At Neysa, we see this as a timely and important development. With Neysa Velocis, our AI acceleration cloud system, and our broader solutions, we help enterprises gain deeper visibility into their data environments, enforce governance at scale and build secure AI-ready infrastructure. Strong data practices are the foundation of every successful AI initiative, and the DPDP Rules reinforce the very principles including transparency, control and accountability that our platforms are built to enable. For us, this is a welcome move that aligns closely with the capabilities we bring to customers as they modernise and scale their AI ecosystems responsibly."

His perspective signals that AI-native companies may become some of the biggest beneficiaries of the clarity the DPDP regime brings.

A boost for deep-tech and industrial innovation

From robotics to advanced manufacturing, India’s deep-tech ecosystem relies on precise data flows and increasingly automated environments.
According to Ankit Kedia, Founder & Lead Investor at Capital-A, "The DPDP Rules come at a time when India’s digital economy is scaling on real industrial use-cases. The framework brings clarity to how personal data is collected, stored and processed, and pushes organisations to build stronger internal systems. It sets the tone for a more disciplined and transparent data culture across sectors.

For manufacturing, robotics and deep-tech companies, this is constructive. These businesses depend on precise data flows, secure environments and clearly defined consent pathways. As factories become more connected and worker data enters automated workflows, trust becomes a competitive differentiator.

For deep-tech founders working at the intersection of engineering, AI and hardware, a structured data regime improves reliability, model performance and the credibility of the IP they create. At Capital-A, we believe DPDP will help Indian deep-tech companies meet global standards and scale with confidence."

This reflects a wider sentiment that the DPDP framework may help Indian hardware-AI players build globally competitive products.

Strengthening India’s approach to security and governance

Cybersecurity leaders also welcome the disciplined structure the DPDP Rules introduce.
Ashish Tandon, Founder and CEO of Indusface, stresses the importance of this shift,“The DPDP Act notification gives India’s digital ecosystem a clear and workable structure for responsible data handling. It sets defined expectations for how personal information should be collected, processed and safeguarded, and it introduces a disciplined approach to consent, breach communication and data retention. This brings much-needed clarity at a time when digital participation is expanding across every sector.

The phased rollout allows organisations to prepare with intent by upgrading systems, training teams and strengthening internal governance. It places data protection at the centre of business leadership and encourages companies to build processes that are steady, transparent and aligned with long-term goals.

India operates digital networks at a scale few countries manage and a structured law creates a strong foundation for future growth. At Indusface, we see this as an important opportunity for organisations to reinforce user trust and embed sound data practices into their culture. The roadmap ahead gives businesses the space to create secure and thoughtful systems that support sustainable progress in the digital economy.”

His assessment underscores that the DPDP regime is as much about governance as it is about technical compliance.

A catalyst for trust across consumer-facing sectors

For large consumer brands and legacy organisations, the DPDP Act redefines how user information can be collected and utilised.
Santosh Singh, Senior Vice President, IT at DS Group, highlights the shift toward a “Trust Economy”, “The Digital Personal Data Protection Act notification of today marks the definitive pivot towards a Trust Economy where bulk personally identifiable information (PII) collection will be replaced by a mandate for precision and accountability at every digital exchange. Certainly, the industry must now invest in consent, making data protection a foundation for commerce and not a cost to it. To the common man, this means a new digital reality giving the citizen the right to erase, correct, and truly control his or her own digital identity.

This legal shift is a positive catalyst for FMCG, ending passive data capture and demanding precise consent linked to clear customer value (loyalty/engagement). By adopting data minimization and purpose limitation, we are compliant and are transforming our reliance on large, retail-driven data pools into high-quality, targeted datasets, driving superior efficiency and building deeper customer trust.”

His remarks point to how the DPDP Rules may transform marketing, consumer analytics and product engagement practices.

A new foundation for India’s digital future