India's first data protection act, the Digital Personal Data Protection (DPDP) Act, has been passed to establish a framework for processing personal data in India.
The act aims to build customer trust by ensuring that personal data is protected and used only for its intended purpose.
Startups need to comply with the act and prioritize data privacy to create customer trust, even if exemptions may apply based on government notifications.
The act imposes severe penalties, including fines of up to Rs 250 crore, for violations or data breaches.