Foreign companies in India must adhere to specific data protection laws in India, primarily governed by the Digital Personal Data Protection Act, 2023 (DPDP Act). The DPDP Act emphasizes lawful, fair and transparent data processing, requiring explicit consent from individuals before collecting personal data. This Act mandates companies to adopt reasonable security measures to protect data and ensure it is only used for its intended purpose. The DPDP Act’s extraterritorial scope means it applies to foreign companies offering goods or services to individuals in India and processing their personal data, ensuring these businesses comply with Indian standards​​.

In addition to the DPDP Act, the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, under the IT Act, 2000, are also relevant. These rules require companies handling sensitive personal data, such as financial or health information, to implement comprehensive security practices and procedures. Non-compliance can lead to significant penalties, including fines and imprisonment​​.

Therefore, foreign businesses must stay abreast of data protection laws India to avoid legal complications and ensure robust data security practices. Consulting with legal experts can help navigate these complex regulations and ensure compliance.