CXOToday has engaged in an exclusive interview with Mr. Piyush Mehta, CEO, Data Dynamics
- The DPDP has been in effect for a year. How has it fundamentally altered India’s digital playing field? What, according to you, are the biggest hurdles and windfalls companies are navigating in this new data era?
Reflecting on the impact of the Digital Personal Data Protection (DPDP) Act over the past year, I see it as a redefinition of how businesses operate in India, shifting the power dynamics between businesses and consumers. Consumers now have greater control over their data, pushing businesses to treat it as a sensitive asset and fostering a culture of trust. While integrating DPDP compliance has been challenging, especially for industries with unstructured data and legacy technology, the Act has also driven innovation in AI-driven data solutions. Additionally, the Indian government’s initiatives like the ‘National Data Governance Framework Policy’ and the push for data localization have further solidified this shift towards a more secure and sovereign digital landscape. The DPDP Act has been a catalyst, pushing us towards a more mature, responsible digital economy where trust and innovation go hand in hand.
2. From fintech to healthcare, the DPDP has rippled through India’s economy. Which sectors have felt the biggest impact? Are there industries that have adapted more seamlessly than others? What are the unique challenges and potential rewards for these key sectors?
The DPDP Act has significantly impacted India’s economy across various sectors, but if I had to pinpoint the ones most impacted, it would be the BFSI, healthcare, and pharmaceutical sectors. I say this because, in a recent roundtable we conducted with the U.S. Consulate in August in Mumbai, several of the top 10 organizations in India across these industries attended the session, and DPDP compliance was one of the main discussion points. BFSI, reliant on data for operations, has rapidly adapted to stricter privacy requirements, investing in advanced data management to ensure compliance and build consumer trust. Healthcare faces challenges due to sensitive patient data, leading to a shift towards secure, unified platforms that enhance privacy and efficiency. Pharmaceuticals are navigating complex data governance during clinical trials and drug development, safeguarding patient data and intellectual property. From what I observed, these sectors are turning compliance into a competitive advantage, building stronger, more resilient businesses in this new data-driven era.
3. India is writing its own data protection playbook. What chapters should it copy from other countries’ experiences? How can global best practices be integrated into the DPDP to future-proof India’s digital economy?
India is indeed crafting its own data protection playbook, and while we’re breaking new ground, there’s immense value in learning from global experiences. One key takeaway is that India’s approach should go beyond merely adopting standards like GDPR or HIPAA. Instead, we should focus on creating a dynamic, adaptable regulatory environment that aligns with our digital sovereignty ambitions, particularly by integrating AI-driven compliance tools and fostering digital literacy. Initiatives like the ‘India Stack’—a unified software platform for digital identity, payments, and data—serve as a foundation for such innovations. Additionally, the potential for a decentralized, blockchain-based data portability platform could position India as a global leader. By educating citizens and empowering businesses, India has the chance to not just protect data but also strengthen its position in the global digital economy.
4. How effective has the Data Protection Authority (DPA) been in implementing the DPDP in its first year? What are the key challenges the DPA faces, and how can these be addressed?
Reflecting on the first year of the Digital Personal Data Protection (DPDP) Act under the Data Protection Authority (DPA), I’d describe it as a mix of progress and inevitable growing pains. The DPA has made significant strides in establishing the regulatory framework and raising awareness—a monumental task given India’s diverse digital landscape. However, the complexity of our data ecosystem, ranging from urban digital natives to rural first-time users, presents challenges that a one-size-fits-all approach can’t address. The DPA must evolve toward sector-specific guidelines and balance enforcement with innovation to avoid stifling the digital economy. The ‘Digital India’ initiative has definitely paved the way for widespread digital adoption, but now the focus should shift towards sector-specific regulations. This requires accelerating technological capabilities, fostering public-private partnerships, and proactively anticipating future challenges, such as AI’s impact on data privacy. While the DPA’s first year has laid the groundwork, the real journey begins now, requiring a deep understanding of India’s unique digital landscape.
5. Data breaches continue to plague businesses. Where does the DPDP fall short in deterring these attacks? What specific enforcement teeth does it need to truly protect consumer data?
Data breaches remain a global challenge, and while the DPDP Act marks a significant advancement in protecting consumer data, its effectiveness hinges on detailed enforcement. Currently, the act’s deterrence mechanisms may not be robust enough for larger organizations, which might view penalties as a mere cost of business. For smaller enterprises, fines are impactful, but for big corporations, they might be insufficient. The DPDP’s focus on compliance can lead to a checkbox mentality rather than fostering a genuine culture of data protection. We need more stringent enforcement, such as higher fines for repeat offenders, mandatory audits, and potential criminal penalties for severe negligence. The Data Protection Authority (DPA) should be empowered with resources for real-time monitoring and immediate action against breaches. Additionally, addressing cross-border data flows is crucial, as data often moves internationally. Strengthening guidelines and international agreements will be essential for comprehensive data protection. The DPDP provides a solid base, but it must evolve to address the complexities of today’s digital environment and promote both deterrence and proactive security.
6. The data landscape is constantly evolving. What are the biggest privacy threats looming on the horizon for India? How can the DPDP stay ahead of the curve and remain relevant in this rapidly changing environment?
The data landscape is indeed rapidly evolving, and in India’s ongoing digital transformation, privacy threats are becoming increasingly complex. AI and big data are particularly concerning, as the vast amount of personal data processed through AI can lead to profiling and discrimination. The rise of IoT devices further expands vulnerabilities, with many connected devices lacking robust security, posing significant privacy risks. Cross-border data flows also present challenges in protecting Indian citizens’ data globally. To stay ahead of the curve, the DPDP must adopt a proactive approach that goes beyond regulation to include real-time AI ethics oversight, dynamic data protection protocols, and stringent enforcement of data minimization principles. The DPDP should not just react to breaches but anticipate and neutralize threats by fostering a culture of privacy-by-design, where data privacy is integrated into the core of all technological innovations.
7. Building a privacy-conscious nation is a complex task. How can India shift the mindset of both individuals and corporations to prioritize data protection? What role can businesses play in this cultural transformation?
Building a privacy-conscious nation is indeed complex but achievable through a “Data Democracy by Design” approach, where data protection is integral to society and business operations. It starts with education; many people still view data privacy as abstract, often sharing personal information online without realizing the risks. Campaigns such as ‘Stay Safe Online’ have made strides in raising awareness, but there’s still work to be done. Awareness campaigns must make data protection relatable, highlighting real-life impacts like identity theft. In businesses, Data Owner Empowerment is key—shifting power to those who generate and manage data daily. At Data Dynamics, we’re leading this charge, ensuring data governance is transparent and decentralized. By empowering employees to take ownership of the data they handle and giving customers control over their data, we can foster a culture of trust and accountability. This extends to embracing Citizen Data Rights, where individuals have control over their data, and businesses integrate privacy into every aspect of the customer experience.
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