More than half of Indian companies have experienced a data breach in the last five years. Your personal information—from banking details to shopping preferences—might have been compromised, yet 82% of survey respondents believe companies aren’t being fully transparent about how they handle your data. Welcome to India’s digital privacy paradox.
A groundbreaking survey by the Confederation of Indian Industry (CII) and Protiviti has revealed the state of data privacy in India as organizations grapple with the new Digital Personal Data Protection Act, 2023. The findings paint a picture of an industry in transition—aware of the challenges but still finding its footing.
The Trust Deficit
Despite 56% of respondents expressing confidence in the government’s privacy initiatives, including the DPDP Act, there’s a glaring trust gap. A staggering 61% of participants believe companies engage in problematic practices like excessive data collection or processing without proper consent. This skepticism isn’t unfounded—52% of organizations surveyed admitted to experiencing at least one data breach in the past five years.
The Compliance Divide
The survey reveals a stark divide between large and small organizations. Companies with revenues exceeding ₹1,000 crore are investing heavily, with 26% allocating over ₹5 crore for privacy programs, compared to just 4% of smaller companies. Even more concerning, 37% of smaller organizations have no budget allocated for data privacy at all.
Progress, But Miles to Go
On the positive side, 63% of organizations have fully documented privacy policies and procedures. However, maturity levels vary significantly. Only 26% report having fully implemented privacy programs, while 32% haven’t even established one or are still in planning stages.
The Technology Challenge
Perhaps most troubling is organizations’ unpreparedness for emerging technologies. Only 24% feel ready to manage privacy concerns associated with AI/ML, IoT, blockchain, and the metaverse. With these technologies rapidly transforming how data is collected and used, this gap could widen privacy vulnerabilities.
Key Takeaways
The survey highlights critical pain points: consent management, data visibility, retention practices, and cross-border transfers top the list of privacy concerns. Organizations are responding by establishing Data Protection Officers, implementing consent management solutions, and improving governance frameworks.
The message is clear: while India’s regulatory framework is taking shape, companies must accelerate their privacy programs. For consumers, this means remaining vigilant about sharing personal information until organizations demonstrate genuine commitment to data protection—not just regulatory compliance.
