Description: This report highlights that certain provisions of India’s Digital Personal Data Protection Act (DPDPA) may inadvertently hinder innovation, increase compliance costs for businesses, and slow the growth of India’s digital economy. Based on a primary survey of 300 firms across major technology and industrial hubs in India, the study evaluates how two key provisions of the DPDPA, Section 3(c)(ii) relating to publicly available personal data and Section 7 governing legitimate uses of data are likely to affect firms’ operations, investments, and innovation strategies.
Attribution: Meghna Bal, Shweta Venkatesan and Aaqib Qayoom, A Survey-Based Assessment of the Impact of the Digital Personal Data Protection Act on Indian MSMEs and AI Innovation, March 2026, Esya Centre.

