Small-Town Businesses Race To Understand New Data Rules As Compliance Deadline Nears
While the Rules promise stronger data protection nationwide, experts warn that without affordable compliance tools and simplified templates tailored for SMEs, many small businesses risk falling behind — or unintentionally violating the law:
Beyond the metros, the impact of the DPDP Rules, 2025 is already being felt across India’s Tier-2 and Tier-3 cities, where thousands of MSMEs, local e-commerce brands, logistics firms and SaaS startups operate with lean teams and minimal formal policies.
Many smaller firms are still unfamiliar with the terminology — data fiduciaries, grievance officers, retention schedules — that the Rules now make mandatory. Unlike larger companies, they often lack legal counsel, cybersecurity partners or even full-time IT teams.
To comply, regional firms will need to adopt basic standards: publish clear privacy notices, document data flows, secure customer databases using encryption, and put in place simple breach-response protocols. Several industry chambers are planning workshops to help firms transition.
While the Rules promise stronger data protection nationwide, experts warn that without affordable compliance tools and simplified templates tailored for SMEs, many small businesses risk falling behind — or unintentionally violating the law.