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DPDP vs GDPR: What Indian IT Founders Should Know Before Going Global

  • Rhea Verma
  • Jun 11
  • 4 min read

Updated: Jul 20

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If you’re a founder running a SaaS or IT services business in India and planning to scale abroad— especially into the EU — you’re probably dealing with a headache called data protection

compliance.

Two sets of rules now matter to you: India’s new Digital Personal Data Protection Act (DPDP) and the EU’s General Data Protection Regulation (GDPR).

At a distance, they sound similar — consent, user rights, penalties, the usual buzzwords. But

when you dig in, they work differently. And that difference matters.

Here’s what you need to know if you’re building in India but scaling globally.

1. First, Figure Out What Data You're Touching

If your users are in India, DPDP applies.

If your users (or even your clients’ users) are in the EU, GDPR applies.

If you’re serving both — you’re now playing by two sets of rules, and yes, that means double

the effort.

Don’t overcomplicate it. Start with a simple map:

● Where’s your user base?

● Where is data stored and processed?

● Are you sharing it with third parties?


Most startups don’t bother with this until they’re asked by an investor or client. That’s usually

when panic hits.


2. Consent Is Treated Differently in Each Law

Under DPDP:

● Consent must be freely given, informed, and specific


● Users must be able to revoke it as easily as they gave it


● You must explain what you’re collecting and why


Under GDPR:

● Consent must be explicit, not implied


● It must be tied to a clear legal basis (e.g., contract, legitimate interest, etc.)


● You also need to document when and how consent was collected


In short: GDPR is stricter, but DPDP is catching up. If you're using cookie banners or “by

using this site you agree...” — you’re behind both.


3. GDPR Has Clear Cross-Border Rules. DPDP? Still Evolving.

GDPR has this figured out. You can transfer data out of the EU if:

● The country is on the EU’s "adequate" list (India isn’t, yet)

● You use Standard Contractual Clauses (SCCs) or Binding Corporate Rules (BCRs)


DPDP will eventually define similar rules, but as of now, there’s no clarity on cross-border

adequacy or mechanisms.


If you handle both Indian and EU data, your safest move is to keep EU data on EU servers or

use SCCs when transferring it elsewhere.


4. Data Subject Rights — The Core of Both Laws

Let’s simplify this.

Under both DPDP and GDPR, users have rights. Things like:

● Asking what data you’ve stored


● Requesting correction or deletion


● Filing a complaint if you ignore them


GDPR goes a bit further — users can ask for data portability and can object to profiling or

automated decisions. DPDP doesn’t yet go there.

But in both laws, if a user reaches out, you need to respond — fast. And log it.


5. Penalties Are No Joke

GDPR fines are famous: up to €20 million or 4% of global annual revenue — whichever is

higher.

DPDP’s upper limit? ₹250 crore per violation. For some startups, that’s enough to kill the

company.

So yeah — not optional anymore. Even if enforcement feels slow at first, clients, partners, and

investors are already paying attention.


6. You Might Need a DPO (or At Least Someone Who Gets This)

Under GDPR, a Data Protection Officer (DPO) is mandatory in many cases — especially for

large-scale processing or sensitive data.

Under DPDP, the rules around DPOs are still emerging. But if you’re a significant data fiduciary

or handle sensitive info, the expectation is you’ll appoint one.

Even if you’re not required to, having one person in your team responsible for privacy is just

good business. It shows clients and investors you’re serious.

What Founders Should Do (Right Now)

● Map where your users are and what laws apply

● Update your privacy policy — make sure it works for both DPDP and GDPR

● Check where your data is going (especially if you use global vendors)

● Review how you collect and log consent

● Assign someone to own privacy internally

● Stay alert for DPDP rules still being finalized


Pro tip: This isn’t a one-time exercise. Privacy compliance is now an ongoing part of your

ops.


Final Word: It's Not About Fear. It’s About Readiness.

If you’re building in India and scaling to the EU (or anywhere, really), don’t wait for a client to

send you a 14-page compliance checklist.


Get your basics in place — and keep it real. You don’t need to be perfect, but you do need to

look prepared and act responsibly.

At Lex Certitude, we help Indian IT and SaaS companies meet DPDP and GDPR standards

without killing their momentum.

Want to pressure-test your compliance setup?


Get our Global Data Compliance Checklist for Indian IT & SaaS Startups



Legal Disclaimer

This post is for general informational purposes and doesn’t constitute legal advice. DPDP and

GDPR enforcement may vary by case and region. For tailored guidance, talk to the Lex

Certitude legal team.

 
 

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