What Data Mobile Apps Can Legally Collect in India (DPDP Act Explained Simply)

Most of us install mobile apps in seconds.

We click “Allow”, accept permissions, and move on.
Few people stop to ask a fundamental question:

What data is this app legally allowed to collect from me in India?

This question has become more important after the introduction of the Digital Personal Data Protection Act, 2023 (DPDP Act). The law now clearly defines what companies can and cannot do with your personal data.

In this article, I’ll explain this topic in straightforward English, without legal jargon, so anyone using a smartphone can understand it.

Why I Started Paying Attention to App Data

I’ll share something personal here.

Before I entered the legal profession, I worked in technology for many years. I saw how apps are designed; not just how they look, but how they quietly collect data in the background.

Later, while studying data protection law, I realised something important:

Most data collection is not illegal.
Most users simply don’t understand what they are consenting to.

This gap between law, technology, and user awareness is where most confusion comes from.

Let’s clear that confusion.

First Things First: What Is “Personal Data”?

Under Indian law, personal data means:

Any information that can identify you, directly or indirectly.

This includes things like:

• Your name
• Mobile number
• Email address
• Location data
• Photos and videos
• Aadhaar-linked information
• Device identifiers

In simple terms:
If data can point back to you, it is personal data.

Who Is Collecting This Data?

The DPDP Act uses a term called “Data Fiduciary”.

Sounds complicated, but it’s not.

Data Fiduciary = the company or app that collects your data

For example:

• A food delivery app
• A banking app
• A shopping app
• A social media app

All of them are data fiduciaries.

What Data Can Mobile Apps Legally Collect?

1. Data Necessary for the App to Work

An app is legally allowed to collect data that is necessary for its core function.

For example:

• A navigation app can collect location data
• A payment app can collect your phone number and transaction details
• A delivery app can collect your address

This is considered reasonable and lawful, as long as the purpose is clear.

2. Data You Explicitly Give Permission For (Consent)

Consent is the backbone of the DPDP Act.

In simple words:

Consent means permission given by you, knowingly and freely.

When you see:

• “Allow access to contacts”
• “Allow location access”
• “Allow camera access”

…and you click Allow, you are giving legal consent.

But here’s the critical part most people miss:

Consent must be specific and purpose-based.

An app cannot legally say:

“We’ll use your data for anything we like.”

The law does not allow blanket permission.

3. Data Collected for Legal or Regulatory Reasons

Some data is collected because the law requires it.

Examples:

• KYC information for banking or investment apps
• Transaction records for financial compliance
• Identity verification under applicable regulations

In such cases, consent is still essential, but the legal obligation also plays a role.

What Apps Cannot Legally Do

This is where many people feel uneasy, and rightly so.

1. Collect Data Without a Clear Purpose

Apps cannot legally collect data “just in case”.

If an app:

• Asks for contacts without an apparent reason
• Wants microphone access without functionality
• Collects location when it’s not needed

…it raises legal questions under the DPDP Act.

2. Use Your Data Beyond the Stated Purpose

If you permit for one reason, the data cannot be reused for another unrelated reason.

For example:

• Location for delivery ≠ , location for advertising
• Phone number for login ≠ , phone number for spam

Purpose limitation is a core principle of data protection law.

3. Keep Your Data Forever

Data retention must be reasonable.

Apps are expected to:

• Delete data once the purpose is fulfilled
• Retain only what is legally necessary

Keeping user data indefinitely “just because storage is cheap” is not acceptable under the law.

A Common Misunderstanding About Permissions

Many users believe:

“If I click Allow, the app can do anything.”

That’s not true.

Consent does not override the law.

Even if you allow access:

• The app must still follow DPDP principles
• The app must still protect your data
• The app must still respect your rights

Consent is permission, not surrender.

What About Data Breaches?

If your data is leaked, exposed, or accessed without authorisation, it is considered a data breach.

Under the DPDP Act:

• Companies have obligations regarding data security
• Serious breaches must be addressed responsibly
• Users have rights relating to their personal data

The law focuses on accountability, not punishment alone.

Why This Matters for Everyday Users

You don’t need to be a lawyer or a tech expert to understand this.

Everyday actions involve data:

• Using UPI
• Booking tickets
• Ordering food
• Applying for services

Understanding what apps can legally collect helps you:

• Make informed choices
• Avoid blind permissions
• Be aware of your digital footprint

A Practical Habit I Follow Personally

I’ll share a small habit I developed over time.

Before installing an app, I ask myself just one question:

“Does this permission make sense for what the app does?”

If the answer is no, I pause.

This one question has helped me avoid unnecessary data sharing more than any technical setting ever has.

What the DPDP Act Is Really Trying to Do

The DPDP Act is not anti-technology.

It is trying to balance three things:

1. Innovation
2. Business needs
3. Individual privacy

The law does not stop data collection.
It regulates how it happens.

Keep in Mind

Mobile apps are a part of daily life. Data sharing is unavoidable in the digital world.

But blind data sharing is not.

Understanding your rights, even at a basic level, puts you in control, not fear.

That awareness is the real purpose of data protection law.