HDPSA: Health Data Privacy and Security Act in India

 

Introduction

 India has finally awakened to the Healthcare Data Privacy and Securities Act, though initial stages it is a good move. India's health care market is constantly growing which is the highest in comparison to most developed nations. The growth is due to the large population of the country as India is the world's second-highest populated country in the world after China. So meeting the demand for such a large population we need more hospitals, clinics, doctors, nurses, and technology. Because of such size, the Indian healthcare industry generates a huge amount of data in terms of financial transactions, patient health data, and treatments given to patients. In today’s digital era, healthcare has taken a giant leap forward with the rise of electronic health records (EHRs), telemedicine, and health-focused mobile apps. These innovations have made healthcare more efficient and accessible, but they’ve also sparked growing concerns about the privacy and security of our most sensitive information—our health data. In India, where the healthcare sector serves over 1.4 billion people, the need for a strong legal framework to protect this data has never been more urgent. Enter the Health Data Privacy and Security Act (HDPSA), a proposed law designed to tackle these challenges head-on. This article explores the HDPSA’s significance, its key provisions, the hurdles it faces, and the potential it holds to reshape India’s healthcare landscape.

Importance of HDPSA

India’s healthcare system is one of the largest in the world, generating an enormous amount of health data every day. This data includes everything from medical histories and test results to treatment plans and personal identifiers. While this information is vital for providing better care, it’s also highly sensitive. If mishandled or accessed without authorization, it can lead to identity theft, discrimination, and a loss of trust in healthcare providers.

Currently, in India, Patient Health data is poorly managed by the sector. In case of a patient data breach, there are no laws to penalize the entity which are involved in a data breach. The data is managed by the physicians, hospitals, and clinics in their format. Apart from this, there are 3rd party service providers are involved in the healthcare system, which gives a high chance of data leakage. In addition, the doctors have to repeatedly write multiple diagnostic tests as they don't have a centralized repository to access the patient's data.

What Does the HDPSA cover:

The HDPSA is built around the idea of protecting individuals’ privacy while allowing health data to be used responsibly for improving care. Here’s a breakdown of its key provisions:

1.       Defining Health Data: The Act takes a broad view of health data, covering everything from medical records and test results to genetic information. This ensures no sensitive data slips through the cracks.

2.       Consent and Ownership: Individuals must give informed consent before their data is collected or used. The HDPSA also recognizes individuals as the rightful owners of their health data, giving them control over how it’s shared.

3.       Data Minimization: Only the data necessary for a specific purpose can be collected, and it can’t be used for anything else without additional consent.

4.       Strong Security Measures: Healthcare providers and others handling health data must implement robust security measures, like encryption and regular audits, to prevent breaches and cyber attacks.

5.       Breach Notifications: If a data breach occurs, affected individuals and regulatory authorities must be notified promptly so people can take steps to protect themselves.

6.       Cross-Border Data Transfers: Health data can only be sent to countries with strong data protection laws, preventing misuse in regions with weaker safeguards.

7.       Regulatory Authority: A dedicated body will oversee the Act’s implementation, ensuring compliance and addressing violations.

8.       Penalties for Non-Compliance: The HDPSA imposes strict penalties, including fines and imprisonment, to deter violations and ensure accountability.

How HDPSA helps:

The HDPSA is more than just a law—it’s a step toward building trust and security in India’s healthcare system. Here’s why it matters:

1.       Empowering Individuals: By giving people control over their health data, the HDPSA puts privacy back in their hands. This is especially important in a country where privacy concerns are often overlooked.

2.       Boosting Digital Health: With clear rules in place, the HDPSA encourages the growth of telemedicine, health apps, and other digital health tools, making healthcare more accessible and efficient.

3.       Strengthening Data Security: By mandating strong security measures, the Act reduces the risk of data breaches, which are becoming all too common in today’s digital world.

4.       Supporting Research: The HDPSA allows anonymized health data to be used for research, paving the way for medical breakthroughs and better public health outcomes.

5.       Global Alignment: By aligning with international standards like the EU’s GDPR, the HDPSA positions India as a global player in healthcare innovation.

Challenges

While the HDPSA is a step in the right direction, implementing it won’t be easy. Some of the key challenges include:

1.       Raising Awareness: Many people and healthcare providers may not fully understand the Act or their rights and responsibilities under it.

2.       Building Capacity: Smaller healthcare providers and startups may struggle to meet the Act’s requirements due to limited resources.

3.       Balancing Privacy and Access: Striking the right balance between protecting privacy and allowing access to data for public health and research is tricky.

4.       Ensuring Compliance: Enforcing the Act across India’s vast and diverse healthcare system will be a monumental task.

5.       Harmonizing Laws: The HDPSA will need to work seamlessly with existing laws like the IT Act and the Personal Data Protection Bill to avoid confusion or overlap.

 The Potential Impact

if implemented effectively, the HDPSA could transform India’s healthcare sector in several ways:

1.       Greater Trust in Digital Health: By addressing privacy concerns, the Act could encourage more people to embrace telemedicine and health apps.

2.       Stronger Data Security: Healthcare providers will need to invest in better security measures, reducing the risk of breaches and cyber-attacks.

3.       More Research Opportunities: Researchers will have access to anonymized data, driving innovation and improving healthcare outcomes.

4.       Increased Accountability: Strict penalties will hold organizations accountable, ensuring they take data privacy and security seriously.

5.       Global Competitiveness: Aligning with international standards will make India a more attractive destination for healthcare investment and collaboration.

Conclusion

The Health Data Privacy and Security Act (HDPSA) is a landmark piece of legislation that addresses a critical need in India’s healthcare system. But it is still a work in progress and there is no definitive date by when it will be finalized and come into practice. However, safeguarding health data empowers individuals, promotes digital health, and enhances data security. While challenges remain, the potential benefits are immense. The HDPSA has the power to make healthcare in India more secure, efficient, and globally competitive, ultimately benefiting everyone—from patients to providers to researchers. As we move further into the digital age, the HDPSA will play a vital role in ensuring that our health data is protected, paving the way for a healthier, more trustworthy future.

2025 Healthcare sector : A overview

 

The healthcare sector in India has experienced significant growth and is continuously growing in the post-pandemic era. The industry has been one of the major driving forces in job creation and revenue generation for the country. This sector has shown steady growth due to demand and the size of the market.  The industry is served by private players and the government which has a large share of the pie and serves more than half the population of the country through its government hospitals, and clinics across the nation.

The Indian healthcare market has experienced significant growth in recent years and is projected to continue expanding. Please check the below chart.

In the above chart, the industry was valued at over $370 billion and is expected to reach over $610 billion by 2026.  The reason for significant demand in health care is due to multiple factors.

1. The current government’s renewed focus on healthcare with new government schemes such as Ayushman Bharat, which has given access to lower and middle-income group people to both private and government hospitals.
2. The current government has launched a national health mission to improve and accelerate primary healthcare services.
3. Government-specialized schemes for women and children have helped in the demand boost for health care services.
4. The population is another factor fueling the growth in the healthcare sector, Indian population is growing at 1.6% and the country has over 100 million elderly populations. Additionally, the rapid economic growth and rising middle income are the factors for the rise in the healthcare market in India.
5. Another key factor contributing to the growth in the healthcare market is the private health insurance players with increased penetration and improved coverage by the companies. Furthermore, rising healthcare cost in India is another contributing factor.

In addition, changing demographics and changes in people’s lifestyles have given a significant rise in lifestyle diseases that have pushed the government to make investments in healthcare. The rise in demand is driving the increase in hospitals, diagnostic equipment, health insurance and demand for Dr and staff.

The below chart shows the projected growth in the Home Healthcare market.

                                The image shows a steady rise in the home healthcare market in India.

This growth in demand from the healthcare sector has pushed the adoption of technologies within this sector.  The technologies which have gained quick adoption in India are telemedicine and Artificial Intelligence.

 Healthcare trends in 2025

With the rapid economic growth and demand in the country for better medical services it will be interesting to watch the healthcare trends this year, Here I have highlighted the trends to watch.

Budget Allocation has increased by 10% from the previous year.

Modi government is committed to improving the healthcare sector and services in the country and that has showed in the budget by allocating ₹99,858.56 crore to the Health Ministry in the 2025-26 budget. This represents a 10% increase from the previous year, aiming to enhance healthcare access and infrastructure. Which is a sign of their commitment towards the health of the people of the country?

Some other key announcements are:

• 36 Life savings drugs are exempted from customs duty.
• Promotion of Medical tourism
• Focus on nutrition.

 The government will promote the PP model (Public Private Partnership)  in health care though there are private groups in the healthcare sector, this model helps the government to make it more affordable for the people and better services can be given to the citizens. The first step towards Notable collaborations is shaping the healthcare landscape. The Adani Group has partnered with the U.S.-based Mayo Clinic to establish affordable health campuses in Mumbai and Ahmadabad. Each campus will feature hospitals, medical colleges, transitional care, and research facilities, leveraging Mayo Clinic's technical expertise.

Technological Integration

As technology continues to evolve at a rapid pace, the Modi government is dedicated to harnessing the potential of Artificial Intelligence (AI) to revolutionize healthcare. AI is becoming a focal point in how healthcare is delivered and health data is interpreted, AI is offering innovative solutions that improve both efficiency and patient care. India is quick to adapt technology and that has helped the demand for AI healthcare care market to rise. The AI healthcare market is expected to increase at a compound annual growth rate of 40.6% and reach $1.6 billion by 2025. The use of AI in the Indian healthcare system is happening in advanced diagnostics to tailor treatments to patients. AI is paving the way for smarter, more personalized healthcare solutions that benefit everyone.

Not only that the preventive health-tech sector (diagnostics, tests,) is expected to grow at a compound annual growth rate of 21%, reaching a market size of $197 million. This growth underscores a shift towards preventive care, emphasizing early detection and wellness to reduce the burden of chronic diseases.  With the government’s commitment towards health tech and boosting the ecosystem, the country has come up with start-ups in health tech which are focused on AI-based devices, tags and mobile applications which help in patient monitoring and helps in preventive measures.

Expansion of Medical Education

The Modi government is dedicated to addressing the shortage of healthcare professionals and has already taken significant steps by adding 10,000 additional seats in medical education. This initiative is designed to close the gap in skilled healthcare workers across various specialities, ensuring improved healthcare delivery across the country. Over the past decade, the government has increased undergraduate (UG) and postgraduate (PG) medical education seats by 1.1 lakh, marking a 130% rise. In the coming year, another 10,000 seats will be added to medical colleges and hospitals, as part of a larger goal to introduce 75,000 seats over the next five years. This effort aims to enhance the doctor-patient ratio and make secondary and tertiary healthcare more accessible and affordable.

Each additional medical seat also means adding four beds to the associated medical college and hospital. Over five years, this initiative is expected to contribute 3 lakh more beds, which is nearly one-third of the current capacity in the public sector. To optimize costs, the government plans to focus on expanding existing medical colleges wherever feasible, rather than establishing new ones. This strategic approach ensures efficient resource utilization while addressing the critical need for more healthcare professionals and infrastructure.

Conclusion:

The healthcare sector showing all the positives and a huge potential to be one of the largest employment and revenue generators in the coming future. On the other hand, the government has sworn to provide all possible support to the sector, This healthcare budget announcement will boost the promises made by the government to improve healthcare access across the country and will have far-reaching positive impacts on rural areas. On the other hand, the sector is and will be generating opportunities for medical, non-medical and technical students. One of the government initiatives to boost medical tourism in the country will help in revenue generation and will provide opportunities for international collaborations which is already happening in the country. In my view, with the government’s promises and the way healthcare is growing, we need to wait and watch for what’s next,