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India's DPDP Act: Industry's Compliance Challenges and Concerns

A study, reveals that several organizations express deep concerns about the impact of the data law.

As India's Data Protection and Privacy Act (DPDP) transitions from proposal to legal mandate, the business community is grappling with the intricacies of compliance and its far-reaching implications. While the government maintains that companies have had a reasonable timeframe to align with the new regulations, industry insiders are voicing their apprehensions and advocating for extensions in implementation.

A new LiveMint report claims that the government claims businesses have been given a fair amount of time to adjust to the DPDP regulations. The actual situation, though, seems more nuanced. Industry insiders,emphasize the difficulties firms encounter in comprehending and complying with the complex mandate of the DPDP Act.

The Big Tech Alliance, as reported in Inc42, has proposed a 12 to 18-month extension for compliance, underscoring the intricacies involved in integrating DPDP guidelines into existing operations. The alliance contends that the complexity of data handling and the need for sophisticated infrastructure demand a more extended transition period.

An EY study, reveals that a majority of organizations express deep concerns about the impact of the data law. This highlights the need for clarity in the interpretation and application of DPDP regulations. 

In another development, the IT Minister announced that draft rules under the privacy law are nearly ready. This impending release signifies a pivotal moment in the DPDP journey, as it will provide a clearer roadmap for businesses to follow.

As the compliance deadline looms, it is evident that there is a pressing need for collaborative efforts between the government and the industry to ensure a smooth transition. This involves not only extending timelines but also providing comprehensive guidance and support to businesses navigating the intricacies of the DPDP Act.

Despite the government's claim that businesses have enough time to get ready for DPDP compliance, industry opinion suggests otherwise. The complexities of data privacy laws and the worries raised by significant groups highlight the difficulties that companies face. It is imperative that the government and industry work together to resolve these issues and enable a smooth transition to the DPDP compliance period.

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