Description: This report highlights how Sections 3(c)(ii) and 7 of India’s Digital Personal Data Protection Act (DPDPA) disrupt innovation, raise compliance costs, and render even routine tasks impossible for AI start-ups and small businesses in India. It provides empirical evidence based on a primary survey of 300 firms across major urban centers and Tier-2 cities. The survey assesses how restrictions on processing publicly available personal data under Section 3(c)(ii), and the omission of legitimate interest and contractual necessity from Section 7 affect businesses’ operations, investment plans, and innovation capacities.
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.
