The Indian Parliament passed the Digital Personal Data Protection Bill, 2023 after extensive public consultation. (Source: PTI)

Earlier, the Indian House of Representatives (Lok Sabha) passed the Bill on August 7.

The new law replaces a 2019 privacy law that required tech companies like Facebook and Google to severely limit the flow of data across borders.

The bill sets out obligations on private and government organisations around the collection and processing of citizens' data, said Minister for Information and Electronics Technology, Senator Ashwini Vaishnaw.

The new law allows tech companies to transfer certain types of user data abroad, and gives the Indian government the power to access and block content through a federally appointed data protection board.

In addition, the new law also grants the Indian government immunity from state agencies and gives users the right to correct or delete their personal data.

The bill seeks to protect the privacy of Indian citizens while proposing penalties of up to 2.5 billion rupees ($30 million) for violations, misuse or failure to protect individuals' digital data.

However, the new law has faced criticism from opposition lawmakers and social activist groups over the scope of the exemptions.

The bill comes six years after the Supreme Court declared "privacy" a fundamental right, with provisions to curb misuse of individuals' data by online platforms.