The Dialogue conducted five stakeholder consultations from March to October on the need for progressive data regulation for Indian startups. These consultations involved 57 startups from various sectors, along with legal experts. India has a growing startup ecosystem, with over 25 unicorns, making it the third-largest globally. However, the proposed Personal Data Protection Bill, 2019, could have significant implications for startups.
The bill’s vague definitions, compliance timelines, and data localization requirements pose challenges. Compliance costs could burden startups, impacting their operations and deterring potential investors. To foster innovation and business growth, there’s a need for clear implementation timelines and an agile, adaptable law. As India transitions to a robust data protection regime, progressive policies should minimize job losses and support startup growth.
Authors: Arya Tripathy, Partner at PSA (Priti Suri and Associates); Karthik Venkatesh, Research Coordinator at The Dialogue; and Trisha Pande, Policy Manager at The Dialogue.
