Introduction
India is exploding with startups, there’s an app for everything now, from learning Sanskrit in 10 days to renting your neighbor’s dog. But in all this innovation and hustle culture, one question often goes unnoticed: Do these startups actually care about our privacy? It’s not just about checking if a website has a “Privacy Policy” link. It’s about whether our data is being respected or just used as fuel for more ads, more profits, and more pitch decks.
The Legal Framework: More Gaps Than Guarantees
India’s privacy laws have always been a bit of a grey zone. For the longest time, the only rulebook was Section 43A of the IT Act, 2000, which basically said companies should have “reasonable” security practices. But what exactly is reasonable? That part was left vague, and most startups didn’t bother digging deeper.
Fast forward to 2023, the Digital Personal Data Protection (DPDP) Act finally came into existence. It introduced important ideas like user consent, data minimization, and penalties for mishandling personal data. Sounds great, right? The only problem is that it’s not fully implemented yet, and many startups either aren’t aware of it or aren’t in a hurry to comply until they’re forced to. Unless a startup falls under heavily regulated sectors like fintech or healthtech, privacy is usually treated as a low priority. Legal teams are either too small or outsourced, and founders are often more focused on scaling up and meeting investor targets than setting up proper privacy protocols. So, while the law is finally here, what action on the ground? Still catching up.
What the Numbers Say: Stats, Surveys & Some Eye-Openers
Privacy may be a trending word, but for most Indian startups, it’s still not a priority. A 2023 LocalCircles survey found that 68% of Indian users don’t trust startups to handle their data responsibly. That’s a serious trust deficit in a country where digital adoption is booming. According to a PwC India 2022 report, only 38% of Indian startups had a formal privacy policy or a designated Data Protection Officer (DPO). This means that in most cases, there’s no one actively ensuring data is being collected, stored, or or used correctly. Another study found that over 70% of apps from Indian startups request more permissions than necessary, like asking for constant location access, microphone, or contact list, even when it’s not required for the app’s core function.
Experts agree this stems from a lack of awareness and a “growth-first, fix-later” mindset. As one cybersecurity consultant in Bengaluru put it: “Privacy becomes important only after something breaks, never before.”
The Startup Mindset: Growth First, Privacy Later
Most Indian startups don’t view privacy as a user right, but as a liability that slows down growth.” Most Indian startups prioritize rapid growth, user acquisition, and investor attention over privacy. Data protection is often an afterthought, addressed only when legal issues or breaches arise. Without strong regulations or user pressure, privacy rarely becomes part of the product design; it’s seen as a hurdle, not a necessity.
Satirical Reality Check
If Indian startups were truly honest, their privacy policies would probably say something like — “We collect everything, keep it forever, and maybe even share it. But don’t worry, it’s encrypted... we think.” Most apps ask for permissions that don’t even make sense. A grocery app asking for mic access or a calculator wanting your location — we’ve all seen it. Half the privacy policies are just copy-pasted, because no one expects users to actually read them. The truth is, for many startups, privacy is just about looking formal and ticking a box, not something they genuinely care about.
Turning Privacy from a Checkbox to a Culture
If Indian startups want to build real trust, privacy can’t be treated as an afterthought. It should be part of the product from the beginning, not something they fix only when a problem comes up. Founders and teams need to actually understand what user privacy means instead of just handing it off to legal or tech teams.
The new DPDP Act is a step forward, but rules won’t make a difference unless they are properly followed and enforced. Startups should face real consequences if they misuse data. Even investors can help by checking if privacy is being taken seriously before investing.
In the end, privacy is not just a legal requirement. It is about respecting users and their trust. Startups that understand this early will not only avoid issues but also build stronger, long-lasting relationships with their users.
The Bottom Line
So, do Indian startups really care about privacy? Honestly, most of them don’t — at least not until they’re forced to. Privacy is still treated like a formality or something to deal with later. But with new laws, more aware users, and growing digital exposure, this mindset needs to change.
Startups that take privacy seriously from the beginning will not just avoid legal trouble — they’ll actually earn user trust, which is way more valuable in the long run. It’s time to stop treating data like free fuel and start treating it like the responsibility it is.
By Ranya Gadhia
