In 2026, the biggest data privacy risks in India will not be determined by a lack of technology. The absence of ownership, visibility, and executive accountability will rule them. As companies operate in a tighter, increasingly complicated regulatory arena, data protection has transcended its position as a regulatory issue in favor of a seat at the very center of enterprise risk, where value, operation, and trust meet in a significant way.
As Data Privacy Week 2026 comes to a close, a few fundamental truths about data privacy and protection are becoming increasingly clear:
- Data protection is no longer simply a checkbox for compliance
- It is a significant business risk for all organisations
- It is an important finding point for trust, continuity, and resilience
What Makes Data Protection the Primary Business Risk in India
India continues to rank high among the most targeted nations in cyberattacks. According to CERT-In data, cybersecurity incidents increased across multiple industries, including Financial Services, Healthcare, IT/ITeS, and Government services.
Against this backdrop, Data Privacy Week is not just a symbolic occasion; it is a reminder for organisations to treat privacy as a strategic imperative. Data protection is the primary business risk in India because of:
- The increasing cost of data breaches: The IBM Data Breach Report notes that India has the highest increase in the cost of a breach, primarily due to operational downtime, recovery costs, fines, and costs incurred through loss of customers. The report goes on to state that:
“Companies that have lower maturity levels regarding their ability to detect breaches and respond to them incur significantly greater total costs after a breach.”
This shows that when an organisation is prepared to protect the confidentiality, integrity, and availability of personal data, it will substantially decrease its financial risk.
- The rise of financial fraud and identity theft: As noted in the Reserve Bank of India’s (RBI) annual reports, there are increasing instances of fraud and identity theft related to digital payments, as well as related to financial crimes that are committed through digital methods. Each of these instances can be directly linked to an individual’s personal information being compromised. (Source: RBI Fraud Data)
For businesses, these developments translate into:
- Increased scrutiny from regulatory authorities
- Mandatory reporting requirements
- Loss of customer trust
- Increased insurance premiums
From Compliance to Risk Mitigation: What Organisations Need To Do
To build a strong data protection posture, organisations looking to comply with DPDP must prioritise:
- Data Mapping and Data Flow Visibility: Understand where personal data is stored, how it is accessed, and how it flows through the organisation.
- Data Intelligence and Consent Policy Governance: Maintain consent and notice policies that comply with DPDP at each stage in the data lifecycle.
- Access Control & Zero-Trust Architecture: Make the impact of breaches as small as possible through granular access rights combined with authentication of the users who access the data.
- Incident Response Plan and Breach Reporting Requirements: Ensure that your incident response plans meet CERT-In and DPDP’s strict breach reporting requirements.
- Employee Awareness and Culture of Privacy: Implement company-wide training on privacy issues.
- Vendor Risk Management: Ensure that all third-party vendors are compliant with the DPDP before allowing them access to customers’ and employees’ data.
How the DPDP Act 2023 has Shifted Back Accountability to Leadership
Over the last few years, India has evolved from a patchwork of fragmented privacy standards to one of the world’s most comprehensive data protection laws under the Digital Personal Data Protection Act (DPDP Act), 2023.
Under DPDP, individuals are no longer passive data subjects; they are recognised as rights-holders whose consent, awareness, and protections shape how organisations design their data privacy. Therefore, data protection failures are no longer operational issues; they are governance failures that demand board-level oversight.
The DPDP Act has established a new framework for the management of personal data and created additional compliance obligations for organisations (referred to as “Data Fiduciaries”).
The major compliance expectations of the DPDP Act include:
- Restrictions on purpose and minimisation of data collected
- Consent and transparency
- Procedures to inform consumers of all data collected
- Timeframes for notifications if an organisation has experienced a data breach
- DPIA required by controller(s) for high-risk processing
- Time limitations on the data stored
- Protections for children’s personal data
- Cross-border data transfer rules
- Penalties per violation
Privacy-Driven Organisations Will Shape India’s Digital Future
Data Privacy Week in 2026 was not just a simple reminder of the upcoming compliance deadlines. Instead, it is an opportunity for organisations across India to create data privacy-focused business models.
DPDP is the first and most comprehensive national privacy law in India. Therefore, organisations must change the mindset from “data protection is an IT responsibility” to “data protection is a boardroom level, trust and resiliency, strategic business priority”.
Organisations that establish strong privacy governance practices, prepare their organisations for cyber risks, and create transparency in data practices will build long-standing trust with their customers, regulators, and global partners. Therefore, organisations that invest early in these areas will be the ones that succeed.
