Government may exempt early-stage startups from data protection regulations

Early-stage businesses will be exempt from the requirements of the DPDP (Digital Personal Data Protection) bill, according to Meity (Ministry of Electronics and Information Technology), which is considering ways to enhance the bill.

According to a government source, the government is considering exempting early-stage firms from the new Digital Personal Data Protection bill’s regulations.

To help startups develop their business models and to make sure that innovation is not hindered by the burden of compliance, the exemption may be granted for a brief time.

“Meity (Ministry of Electronics and Information Technology) is mulling to improve upon the bill to exempt early-stage startups from the provisions of DPDP (Digital Personal Data Protection) bill. This may be for a limited time period in cases where they may be doing some kind of data modelling etc to develop their solution,” The source, who wished to remain anonymous, stated. Only government-notified data fiduciaries and data processing entities are intended to be excluded under the draft DPDP from restrictions on data collecting, data sharing, and other aspects of data processing.

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