The government plans to exempt early-stage startups from complying with norms under the proposed Digital Personal Data Protection Bill (DPDP), according to the reports. It also mentioned that "Meity (Ministry of Electronics and Information Technology) is mulling to improve upon the bill to exempt early-stage startups from the provisions of DPDP (Digital Personal Data Protection) bill.
The exemption would be for a limited time period to help startups in developing their business models and to ensure innovation continues and does not get affected due to compliance burden.
The draft DPDP proposes exemption only for government-notified data fiduciaries and data processing entities when it is to data collection, data sharing, information about data processing and others.