Other BriefingsUnderstanding India’s DPDP Consent Management Rules for Businesses
India has released the Business Requirements Document (BRD) for consent management systems (CMS) in June 2025, offering technical and functional guidance in anticipation of the DPDP Act, 2023.
The document holds strategic value for businesses and investors, particularly in data-intensive sectors, by enhancing regulatory readiness, consumer confidence, and global interoperability.
On June 6, 2025, the Ministry of Electronics and Information Technology (MeitY) released the business requirement documents (BRS) for CMS, providing technical and functional guidance. for a platform designed to manage consent for processing personal data. The document was released in anticipation of the enforcement of the Digital Personal Data Protection (DPDP) Act, 2023.
Although the Act is not yet in effect, the guidelines come at a time when businesses across sectors are grappling with increasing expectations to handle personal data in a transparent and accountable manner.
READ MORE: India’s Digital Personal Data Protection (DPDP) Act, 2023
Objectives and scope of the BRD and CMS
The BRD outlines the foundational structure for a CMS that manages the full lifecycle of consent—from collection and validation to updates, renewal, and withdrawal. It is drafted to reflect key principles of the DPDP Act, such as digitial data purpose limitation, data minimization, and lawful processing.
At its core, the CMS aims to facilitate end-to-end consent lifecycle management in line with legal mandates. It also aims to empower data principals (individuals whose data is collected) to manage their data rights.
The rollout of a CMS in line with the specifications outlined in the BRD involves several principal actors, as defined under the DPDP Act:
- Data principals: Individuals whose personal data is collected and processed. They are central to the CMS framework, with the right to manage, review, and withdraw their consent at any time.
- Data fiduciaries: Organizations or individuals that determine the purpose and means of processing personal data. They bear the legal responsibility for ensuring that consent is obtained, maintained, and demonstrably valid.
- Data processors: Entities that process personal data on behalf of data fiduciaries, strictly in accordance with their instructions. They are required to operate within the scope of the consent obtained and managed through the CMS.
- Consent managers: Registered intermediaries with the data protection board, responsible for facilitating consent management services. Their role is to ensure that the process is transparent, accessible, and user-friendly across different platforms and services.
- Data protection officers (DPOs): Designated by certain organizations to oversee compliance with the DPDP Act. DPOs are tasked with monitoring CMS operations, addressing data-related grievances, and serving as a liaison with regulatory bodies.
Lifecycle components under CMS
The document outlines critical components of a consent management architecture, including user dashboards, consent lifecycle management, notification mechanisms, and grievance redressal channels. It also emphasizes backend administrative functions like user role management and data retention policy configuration to ensure operational consistency and regulatory preparedness.
The BRD is particularly relevant for startups, developers, and digital service providers aiming to build compliant systems aligned with the DPDP Act and its upcoming rules.
Consent collection
The CMS initiates consent collection when a Data Principal performs a data-triggering action, such as registration or onboarding. The system generates customized consent prompts based on identified data processing purposes. Consent notices must be presented in English or any language from the Eighth Schedule of the Indian Constitution, and include clear details on the following:
- Purpose of data processing
- Categories of data collected
- Retention timelines
- User rights and redress mechanisms
Granular consent must be enabled using clear UI components (for example, checkboxes, toggles), allowing users to selectively approve or deny consent for each data processing purpose. Pre-checked options are not permitted. Consent must be affirmatively provided—such as by clicking the “I Agree” option.
Once consent is given, the CMS validates its legal sufficiency—ensuring it is informed, specific, explicit, and freely given—before generating and securely storing a consent artefact with full metadata.
The system also ensures real-time synchronization of consent status across internal systems and third-party processors via secure application programming interfaces (APIs).
Consent validation
Before processing any personal data, data fiduciaries are required to verify user consent. This is done through an API call to the CMS, providing user/session identifiers and intended purpose. The CMS checks for an active consent artefact that:
- Exists for the specified purpose
- Has not expired or been withdrawn
- Aligns with the intended scope of data use
If validated, the CMS grants clearance; otherwise, the request is denied, and the user is notified. All validation attempts are recorded in immutable audit logs.
Consent updates
Data principals can update consent preferences at any time or when new processing purposes are introduced. Through the dashboard, users can view all active consents, adjust individual settings, and maintain control over data usage. Updated consents are validated, stored, and communicated to relevant data fiduciaries.
Consent renewal
When a consent is nearing expiration, the CMS triggers a renewal request. The workflow is similar to that of an update, with emphasis on reaffirming user intent. Renewed consent must be actively provided, with updated terms—such as changes in retention policy—clearly explained.
Consent withdrawal
Users may withdraw consent for specific purposes through the dashboard, mobile interface, or support portal. The system displays all consents by purpose, allows users to select the ones to revoke, and outlines potential implications (for example, loss of access to services). Upon confirmation, the system marks the consent artefact as withdrawn, notifies affected fiduciaries and processors, and halts all related data processing—unless exempted under law. The event is logged for audit purposes.
Cookie consent management
The BRD also includes guidance on cookie and tracking consent for digital platforms. Upon a user’s first visit, a banner must explain cookie usage and enable granular preference selection for different categories—essential, performance, analytics, and marketing.
Only essential cookies may be active by default. Users must opt in to all others, and preferences must be logged with metadata. A dedicated dashboard should allow real-time modifications or revocation. Cookie settings must auto-expire in line with data retention norms, and any changes to policy should prompt renewed user consent. Policies must be accessible and available in multiple languages.
Strategic importance of BRD for companies
The BRD’s release marks an important development in India’s data governance ecosystem. It elevates the role of data protection from a compliance obligation to a strategic priority. For businesses, aligning with the BRD offers early-stage legal clarity, operational preparedness, and consumer trust advantages.
Non-compliance with the DPDP Act could invite penalties of up to INR 2.5 billion (US$29.2 million). Thus, demonstrating BRD-aligned readiness enhances business resilience—particularly during mergers and acquisitions (M&A) due diligence, investor assessments, or global expansion efforts.
CMS strategic implications for investors
For foreign investors, BRD compliance terms may include clauses on data protection readiness, validated consent flows, and legal representations regarding privacy practices. This is relevant in sectors with foreign equity caps or sensitive national interest implications, such as telecom, finance, and healthcare.
From a private equity (PE) and venture capital (VC) standpoint, robust CMS implementation reduces portfolio risk. It also becomes a point of differentiation in competitive markets, particularly when trust and transparency are key to consumer engagement.
Ultimately, CMS is emerging as a strategic factor in capital deployment, post-investment integration, and long-term value creation—making it a vital consideration across the investor spectrum.
CLICK HERE: Venture Capital Investment in India: A Guide for Foreign Investors
Enhancing global alignment and market access
The BRD also supports India’s efforts to align with global data protection standards, including the European Union’s General Data Protection Regulation (GDPR). Its emphasis on secure APIs, audit trails, and role-based access positions Indian firms to integrate more easily into international data ecosystems.
This compatibility enhances the export potential of Indian startups and increases their attractiveness to global partners, acquirers, and investors—particularly in jurisdictions where stringent data standards are mandatory.
Conclusion
India’s BRD for consent management under the DPDP Act marks a turning point in the country’s digital governance landscape. It offers businesses a structured pathway to ensure data privacy compliance while positioning themselves as trusted and future-ready enterprises. For investors, the framework signals a maturing regulatory environment that prioritizes transparency, consumer empowerment, and global interoperability.
(US$1 = INR 85.6)
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