In a major step toward strengthening digital privacy, the government has introduced new rules requiring companies to clearly explain why they are collecting user data and how they intend to use it—before the data is taken. The move aims to enhance transparency and give consumers greater control over their personal information in an increasingly data-driven economy.
According to officials, the updated framework applies to all organisations that collect, store, or process user data, including technology platforms, e-commerce firms, digital service providers, and financial institutions. Companies will now be obligated to issue simple, accessible disclosures detailing the purpose of data collection, retention timelines, and data-sharing practices.
The new rule also mandates that businesses provide users with an option to decline non-essential data requests without losing access to core services. Authorities say this will prevent companies from bundling unnecessary data permissions with essential apps or digital services.
Industry experts view the move as part of the broader rollout of India’s data protection regime, which seeks to strike a balance between innovation and user rights. While some companies may face initial compliance challenges, analysts believe the long-term impact will be positive, fostering trust and ensuring ethical data practices.
Consumer rights groups have welcomed the decision, saying it will curb misuse of personal information and reduce risks of data leaks. “This is a crucial step toward putting users in the driver’s seat,” said one advocacy representative.
Officials have indicated that penalties for non-compliance will be significant, encouraging companies to adhere strictly to the new requirements. Implementation guidelines are expected to roll out in the coming weeks.
