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India's DPDP Act May Hike Startup Operational Costs by 20%
✍️ NDTV Top
🗓 18 Jun 2026, 10:32 AM
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Experts suggest that India's new Digital Personal Data Protection (DPDP) Act could lead to a significant increase in annual operational costs for startups, potentially adding Rs 20-40 lakh to their expenses.
India's recently enacted Digital Personal Data Protection (DPDP) Act is poised to impact the operational expenditures of startups. According to industry experts, companies, particularly startups, may face a substantial rise in their annual spending due to compliance requirements under the new legislation.
For a startup with an estimated annual spending of Rs 1-2 crore, the additional cost associated with adhering to the DPDP Act could range from Rs 20 lakh to Rs 40 lakh. This represents a potential increase of 10% to 20% in their operational budget, a significant figure for businesses operating on tight margins.
The law, which aims to protect the digital privacy of individuals, mandates various obligations for entities processing personal data. These obligations likely necessitate investments in new technologies, revised data handling protocols, and potentially increased staffing, contributing to the projected cost hike.
For a startup with an estimated annual spending of Rs 1-2 crore, the additional cost associated with adhering to the DPDP Act could range from Rs 20 lakh to Rs 40 lakh. This represents a potential increase of 10% to 20% in their operational budget, a significant figure for businesses operating on tight margins.
The law, which aims to protect the digital privacy of individuals, mandates various obligations for entities processing personal data. These obligations likely necessitate investments in new technologies, revised data handling protocols, and potentially increased staffing, contributing to the projected cost hike.