Q3 - Can an Indian company freely transfer anonymized data abroad?
Answer
- Yes. Anonymized data, which cannot identify an individual, is not treated as personal data under DPDPA.
- Therefore, its transfer abroad is unrestricted.
Example
- A pharmaceutical company conducting a diabetes study may anonymize patient names, Aadhaar numbers, and phone numbers, retaining only aggregated statistics (e.g., “20% of patients in Maharashtra are diabetic”).
- These anonymized results can be freely shared with research partners in the U.S. or EU.
Weak Controls
However, if the anonymization is weak and individuals can still be re-identified, the Board may treat it as a violation.