In a nation as vast and diverse as India, digital transformation is redefining the relationship between citizens and the state. The Aadhaar system, India’s biometric-based unique identification program, stands as a striking example of how data protection concerns can shape public trust in technology. Launched as a tool for inclusive governance, Aadhaar today authenticates billions of transactions monthly (March 2025 alone saw 246.75 Cr authentications), integrating seamlessly into welfare delivery, banking, and even everyday services (UIDAI Monthly Authentication Statistics, 2025). Yet, this very ubiquity has exposed the system and by extension, e-governance in India to unprecedented data protection challenges, with one data breach alone reportedly affecting over 815 million citizens and raising fears of identity theft, misuse, and loss of trust in public digital infrastructure (The Hindu, 2023).
Where It Matters
Data protection in software development world refers to the systematic protection of user data at every stage, from design and coding to testing and deployment. For e-governance, this means safeguarding vast amounts of sensitive citizen data, often underpinned by legal and ethical mandates. When data protection is neglected, the result can be large-scale data breaches, loss of public trust, and even legal repercussions.
- E-Governance: The Stakes Are High
India’s e-governance sector is a unique case study. Projects like Aadhaar, digital land records, and online welfare transfers bring government services directly to citizens but require collection and processing of highly sensitive information such as biometric, financial, health, and demographic data. With over 1.4 billion citizens and 99% of adults enrolled in Aadhaar, the scale of sensitive data management is unprecedented (UIDAI, 2025). The imperative is clear: data protection is not merely a technical requirement but a cornerstone of effective governance and social trust.
- The Aadhaar Example: Data protection at Scale
Aadhaar represents both the promise and peril of digital governance. On one hand, it has enabled unprecedented scale and speed in public service delivery (over 2707 Cr authentication transactions in FY2024–25), but on the other, it has magnified data protection and security vulnerabilities.
a. Data Breaches: The 2023–24 data breach affecting 815 million citizens is among the world’s largest, with personal and biometric information reportedly available on the dark web.
b. Public Perception: 87% of Indians now express fear over data breaches, and half specifically worry about Aadhaar security (Business Standard Survey, 2025).
c. Legal and Ethical Dilemmas: Centralized, large-scale data collection without explicit consent has triggered constitutional debates and judicial scrutiny (Justice K.S. Puttaswamy v. Union of India, 2017).
Why Data Protection Has Struggled to Integrate into E-Governance
- Rapid Digital Rollout
India’s digital leap was often prioritized over embedding data protection by design. Several e-governance platforms were developed and scaled quickly to meet urgent administrative needs, with data protection controls frequently added as afterthoughts rather than as core architectural features. The rapid establishment of a digital governance system prior to 2023 occurred before the advent of contemporary data protection frameworks. This phenomenon has raised significant concerns regarding individual privacy and the security of personal information. The Digital India initiative, launched in 2015, aimed to create rapid e-governance applications within just few years, creating inevitable technical debt that continues to complicate data protection retrofitting.
- Fragmented Legal Frameworks
Until the Digital Personal Data Protection Act (DPDPA) of 2023, India’s data protection regulations were fragmented across sectors. This led to inconsistent data protection requirements, making it difficult for projects to implement uniform data protection standards across government platforms. Government surveys revealed that many Indian technology organizations cited regulatory uncertainty as a major barrier to implementing data protection controls. The DPDP Act, 2023 aims to consolidate data protection standards, emphasizing “data protection by design,” but implementation is still ongoing, and detailed technical guidelines remain under development.
- Cultural Attitudes Toward Data protection
Indian cultural perspectives on data protection differ significantly from Western individualistic models. Traditional communal living arrangements and collective decision-making have historically shaped attitudes where personal information is more openly shared within community contexts. This cultural context influences how citizens, developers, and policymakers perceive data protection needs, often prioritizing service accessibility over data protection, particularly in rural areas where digital literacy remains limited.
- Limited Data protection Awareness
There is no widespread, standardized data protection training for Indian software industry. This skills gap means data protection risks may go unrecognized or unaddressed during critical development phases. A preconceived notion on data protection requirements as potential impediments to service delivery rather than as essential protections may increase vulnerability to data breaches. This organizational culture creates friction when implementing data protection-by-design principles.
The Evolving Landscape
- Policy Advances and Their Practical Impact
The DPDPA 2023 provides India’s first cross-sectoral data protection law, introducing penalties up to Rs 250 crore ($30 million) for serious violations and requiring data protection by design. This regulatory shift has begun influencing practices, with 56% of surveyed agencies now incorporating data protection impact assessments into their development cycles. (Data Security Council of India, 2023).
- Technical Safeguards and Implementation Gaps
Newer initiatives stress the need for data protection engineering and secure system architecture, though standardized technical guidelines are still evolving. The India Enterprise Architecture Framework (IndEA) now includes specific data protection-by-design components, but adoption remains voluntary and inconsistent. The National e-Governance Division mentioned that only 29% of e-governance applications launched in 2024 fully implemented these guidelines, highlighting the persistent gap between policy and practice.
- Persistent Challenges in a Rapidly Evolving Environment
High-profile incidents like the Aadhaar breach underscore persistent vulnerabilities, with significant government data breaches that have occurred over the years. As of May 2025, no major enforcement actions have been initiated under the DPDPA 2023, all still in preliminary stages, leaving organizations uncertain about compliance priorities. This regulatory ambiguity continues to complicate data protection implementation efforts. Despite improvements, public scepticism remains high, with 82% of Indians expressing low confidence in data protection measures—a significant barrier to digital adoption (PWC Survey, 2024).
The article has been written by Yash Veer, Consultant at Centre for Smart Governance
