India may exempt early stage startups from data protection rules under DPDP bill proposal

Exemption could apply for limited time while startups build

India’s government is reportedly considering a limited exemption for early-stage startups from some compliance requirements under the proposed Digital Personal Data Protection (DPDP) bill. The rationale: easing pressure from data-handling obligations that could stifle startups while they develop data models and solutions. The DPDP draft also details strong penalties for breaches and proposes removing compensation provisions from the IT Act.