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INSPIRA-JOURNAL OF MODERN MANAGEMENT & ENTREPRENEURSHIP(JMME) [ Vol. 16 | No. 2 | April - June, 2026 ]

Impact of India’s Digital Personal Data Protection Act on Corporate Compliance and Business Operations

Ms. Shubhangi Nirwan

The digital technology landscape together with online platforms and data-driven business models has reached an advanced state of development which creates serious privacy and cybersecurity problems for personal data protection in India. The Government of India established the Digital Personal Data Protection Act DPDP Act 2023 to control personal data handling practices because of the increasing volume of digital transactions and incidents of data abuse. The legislation establishes new digital governance frameworks which protect user privacy rights while creating systems that hold organizations accountable for their personal data handling practices. The present study examines the impact of India’s Digital Personal Data Protection Act on corporate compliance requirements and business operations. The research focuses on analyzing how organizations are adapting to new legal obligations related to consent management, data processing, cybersecurity measures, grievance redressal systems, and data protection responsibilities. The study also evaluates the operational and financial challenges faced by companies in implementing compliance frameworks. The research team used a descriptive research design to collect data which they obtained from secondary sources that included government reports and legal documents and industry publications and research studies. The research findings demonstrate that the DPDP Act requires businesses to take greater responsibility for managing data and protecting consumer privacy rights. Organizations need to develop more effective security systems and create clear consent processes and establish methods for monitoring their adherence to laws. The research results show that large companies with sophisticated technology systems can meet regulatory requirements more easily than small and medium-sized businesses which struggle with their operational and financial operations. The study reveals that businesses face significant difficulties due to their need to spend money on compliance requirements and employee training and technology updates. The Act will achieve its goal of increasing consumer trust while establishing digital business credibility and promoting responsible data management practices. The study shows that organizations need to develop awareness about the DPDP Act and prepare their legal systems and invest in technology and control their regulatory activities for effective implementation. The research helps explain how digital privacy laws interact with corporate governance practices and business sustainability in India's digital economy.

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