Navigating Cross-Border Data Transfers Under India’s DPDPA
What Is a Cross-Border Data Transfer?
In simple terms, cross-border data transfer refers to the movement of personal data from one country to another. The data are used in cloud storage, data analytics, or global service delivery. Data-based transfers are primarily used in e-commerce, and they allow international businesses to operate smoothly.
When it comes to global communication and cloud computing, data plays a major role, but the transfer of personal data across different borders is complicated, as privacy laws vary by nation.
Not every country follows a similar approach in dealing with data, as some have strong protections (the EU’s GDPR, and the DPDPA of India). Meanwhile, there are a few other nations that are more lenient. This disparity can create legal and ethical concerns, especially if your data ends up in a jurisdiction with weak privacy protection practices.
Why Do We Need Data Protection Laws Like DPDPA in India?
Data is a valuable asset and when an individual’s data is accessible to a business, they are liable to protect it. When such a possession is vulnerable to unauthorized control or theft, then there is a need for personal data protection laws. In the absence of regulation, personal data can be misused, shared without consent, or exposed to surveillance.
When a country fails to implement protective regulations, it’s also a negative remark on the business originating from that place. That’s why data protection laws are a necessity, and they act as guardrails guiding how personal data should be collected, stored, processed, and transferred.
Moreover, in the latest news update on the draft rules in 2025, it is declared that the government-appointed officials have the power to impose conditions on data that is enabled for foreign states or entities under their control.
In India, DPDPA was introduced in 2023. This structured framework is designed to protect digital personal data within India, and even information passed beyond its borders. This organized regulation brings India closer to global data protection standards, and it stands as an assurance that businesses handle data responsibly.
DPDPA aims to ensure:
- Personal data is processed lawfully and securely
- Data principals (users) have clear rights
- Organizations are accountable for data usage especially when it crosses India’s borders
What Terms of DPDPA India Regulate Cross-Border Data Transfers?
When data is transferred across different nations, India follows some practices and approaches for ethical data handling. Here is how the DPDPA handles data transfers beyond the country.
The Negative List Approach
EU’s GDPR adopts an adequacy mechanism, whereas India’s DPDPA follows a negative list model. According to Section 16, personal data can be transferred to any country except those explicitly blocked by the central government.
It implies that data transfers are permitted to countries other than those on this restricted list. This is considered a liberal approach currently.
You Need a Lawful Basis
To send personal data abroad, you also need a lawful purpose. Section 4 of the Act requires data to be processed either:
- With the consent of the user (data principal), or
- For legitimate uses outlined in the law (e.g., legal claims, medical emergencies)
Also Read : What SaaS Providers Need to Know About India’s Digital Personal Data Protection Act 2023
Why Data Sharing Agreements Are Crucial for Business in India?
Let’s consider that your business is transferring data within India; even then, you may still be sharing data with third-party processors such as cloud service providers or analytics partners. In such cases, Data Sharing Agreements (DSAs) are most needed.
India’s DPDPA mandates that data fiduciaries must enter into DSAs with any data processor they engage. When your business takes accountability for the DSA, it helps define roles, responsibilities, security measures, and compliance expectations.
A Data Sharing Agreement (DSA) is a consent form that charts down the specifics like, the nature of the data being shared, the purpose of its processing, the obligations of both parties, and the safeguards and liability clauses to ensure responsible handling and protection of the data.
Here are some use cases where DSAs are required:
- Storing customer data on a cloud platform
- Using third-party vendors for data analytics
- Partnering with another business for joint marketing campaigns
Are There Categories of Data in DPDPA India?
DPDPA was defined recently, and it does not categorize personal data into specifics like sensitive or critical. However, the Draft Rules suggest this may happen in the future, especially for Significant Data Fiduciaries (SDFs). That’s where large volumes or high-risk data are being handled.
Also Read : The Role of Data Protection Officers in SaaS Companies: A Mandate Under the DPDPA
SDFs may be required to store certain data only within India. So, to add further protection, an additional layer of compliance is expected to be implemented.
Who Must Comply with India’s DPDPA Rules?
The Digital Personal Data Protection Act applies to:
- Significant data fiduciaries who has control over high volumes or sensitive data. This includes government entities.
- Foreign companies processing Indian citizens’ data
According to DPDPA rules, even micro, small, and medium enterprises (MSMEs) come under this law if they process personal data.
Global Landscape Data Transfer Regulations vs DPDPA
| Region | Law | Key Features | Challenges |
| EU | GDPR | Strict rules with tools like SCCs, BCRs, Adequacy decisions | Complex and costly for SMEs |
| USA | CCPA, HIPAA, etc. | Sector-based, state-level rules. No federal law | CLOUD Act may conflict with other privacy laws |
| China | PIPL | Requires separate consent, localisation, CAC approvals | Costly & rigid; conflicts with other laws |
| India | DPDPA | Negative list, lawful processing, DSAs, localisation potential | Criteria for blacklisting countries is unclear |
Best Practices India Must Follow for Secure Cross-Border Data Transfers
DPDPA regulatory rules are still evolving, and until the rules are fully operational, businesses should start aligning with these global privacy practices:
Conduct Transfer Impact Assessments (TIAs)
Cross-check the regulations if the destination country has strict privacy laws to protect the data of your natives. Verify if there could be any possible risks with data transfers. Also, you must assess if the identified issues can be mitigated.
Enable Strong Security Controls
When your business follows an encryption method with data processing, it’s safer on your side. You must adapt the practice of secure transfer protocols, access restrictions, and firewalls to protect data in transit and all the data your business manage.
Document Every Process
Cross-border transfer records should be saved as it might be useful for future references and audits. So, maintain a detailed record of consents, data sharing agreements that are signed, and processing activities.
Protect Data
Protecting data cannot be a second thought when it is your business. Integrate the latest privacy policies into your technologies and use techniques like anonymizing or pseudonymizing data wherever possible. Also, limit who can gain access to each data particular.
Monitor Regulatory Updates
Compliances take upgrades frequently, like updated negative lists of countries, government clarifications, or new rule additions. In order to be notified, join industry forums and align your business with the legal updates issued.
Train Your Teams
Educate your staff on the importance of DPDPA. Train them periodically, especially teams that work with vendors, tech, and legal.
Businesses operating in any country that work actively via digital means must consider data as a crucial priority, as it includes personal data. When that data is transferred to a different nation, there is a need for data privacy regulations to protect it from unethical access or usage.
Each country’s government has imposed specific rules, like DPDPA for India. Data protection is a business’s responsibility, and they must know the importance and take essential steps in handling the data they hold.
Having control of data with secure flow keeps your business growing, and you need an expert to guide you through the process and implement the steps. Wattlecorp’s professionals are skilled data privacy specialists proficient in national and international standards, helping businesses navigate complex rules easily and avoiding penalties.
Our experts handle everything from policy audits to regulatory adaptations to keep your business in compliance with government rules.
DPDPA India FAQs
1.Is DPDPA applicable in India?
Yes. The Digital Personal Data Protection Act (DPDPA) applies to businesses, organisations, and even government bodies in India that handle personal data. It also applies to companies outside India if they process the personal data of people in India.
2.What is GDPR for India?
The DPDPA is an Indian law similar to the GDPR. It sets defined rules for how personal data should be collected, stored, and used to protect people’s privacy.
3.What is the difference between GDPR and DPDPA?
Both laws protect personal data in their country. GDPR is the European Union’s law and the DPDPA is India’s law. GDPR covers both personal and non-personal data. Meanwhile, DPDPA mainly focuses on digital personal data and is simpler in scope.
Server Hardening for Indian FinTech Cloud Infrastructure: RBI Outsourcing and Data Localisation Rules
Key Takeaways: RBI doesn’t publish a single server hardening standard for every FinTech. Hardening gets judged through its outsourcing, data localisation and IT governance expectations. Moving workloads to a cloud provider moves the hosting, not the accountability. The regulated entity still owns the evidence. Data localisation for payment data changes server design: region pinning and […]
Mobile Application Penetration Testing for Saudi Government Apps: CITC and NCA Security Standards
Key Takeaways: Mobile app penetration testing Saudi Arabia helps government entities identify client-side vulnerabilities and backend API weaknesses that could either expose sensitive citizen information or enable unauthorized actions. Testing should consider evaluating the entire transaction, i.e., mobile client interface and local storage through network transport to server-side APIs, identity verification, and backend authorization. Even […]
DevSecOps for Indian Government: Meeting CERT-In Audit RequirementsÂ
Key Takeaways: CERT-In’s guidelines for application security advise integrating security throughout the Software Development Life Cycle (SDLC) than relying only on post-development audits. DevSecOps helps streamline CERT-In compliance India by moving security from a last-mile bottleneck to an automated, continuous process within the SDLC. Supporting CERT-In-aligned application security involves building a complete security lifecycle that […]
DIFC AI and Automated Processing Regulation: Full Enforcement Guide for Dubai Financial FirmsÂ
Key Takeaways: Regulation 10 of the DIFC Data Protection Regulations applies to any DIFC entity deploying an automated system that processes personal data, including AI tools bought off the shelf from a vendor. The regulation splits responsibility between two defined roles, deployer and operator, and most financial firms are deployers even when they did not […]
Black Box Penetration Testing for UAE Critical National Infrastructure: NCAP Pre-Accreditation Testing
Key Takeaways: Black box penetration testing examines critical systems from the perspective of an external attacker, who has minimal prior knowledge of the internal environment other than relying primarily on publicly available information and approved testing scope. It helps find shadow assets, exposed services, weak authentication, cloud misconfigurations, and vulnerable third-party access paths. Testing supports […]
Cyber Security Strategic Consulting for UAE Boards: Aligning Security Investment with the NCSS 2025–2031Â
Key Takeaways: The Cyber Security Strategic Consulting UAE programmes help organizations align their cybersecurity roadmaps with the five NCSS pillars, namely governance, protection, innovation, establishing and building, and partnership. Boards should connect cybersecurity spending to material business risks, critical services, regulatory duties, and measurable resilience outcomes. Cyber security strategic consulting UAE programmes translate national direction […]
