Cross-border data transfers in India face several legal challenges due to evolving data protection norms and the need to balance national security, privacy, and global business interests.
The primary concern is data privacy, especially after the enactment of the Digital Personal Data Protection Act, 2023 (DPDP Act), which restricts the transfer of personal data to certain countries as notified by the government. One key challenge is the lack of clarity and uniformity in data adequacy assessments, which creates uncertainty for businesses.

Moreover, sector-specific regulations (e.g., RBI’s data localisation mandate for financial data) complicate compliance further. The absence of detailed rules regarding standard contractual clauses and data transfer mechanisms adds to the confusion.
Additionally, ensuring security safeguards and accountability for data misuse abroad poses legal and enforcement difficulties.

Cross-border data transfers under Indian law, particularly concerning the Digital Personal Data Protection Act, 2023 (DPDP Act), face several legal challenges. These include navigating inconsistent international standards, ensuring data security and privacy during transfers, dealing with potential legal and jurisdictional conflicts, and keeping up with evolving regulations. The DPDP Act also introduces specific requirements and restrictions on data transfers, which can create compliance complexities for businesses.