Posted on July 3, 2026
The regulatory regime in India governing virtual private network (VPN) services can potentially see toughening in the near future as the Central Government is considering putting forth a new legal regime that would seek to improve the accountability of VPN operators. In this respect, the new regulations would compel any VPN service providers operating in India to have a local presence along with compliance officers, thus making it another step in the digital policy of India.
These regulations come on the backdrop of increasing concern within the government regarding the use of the aforementioned services to avoid accessing blocked websites and applications. It is believed that the existing regulatory regime of 2022 has failed to achieve its set goals.
Why the Government Wants Tougher VPN Regulations
VPNs are extensively used by both individuals and organizations for establishing secure internet connections, safeguarding online privacy, and accessing geographically blocked content through routing internet traffic via servers in other parts of the world, thereby hiding the identity of their users.
Although technology plays an important role in cyber security as well as in providing a remote work facility, the government is concerned with the fact that the use of such technology is being increasingly employed for bypassing the restrictions imposed by the government on certain websites and applications.
According to official reports, there is a concern that people are using this technology to access those websites or applications that have been blocked by the Indian government.
The Indian government is now considering introducing new laws that will compel VPN providers to have more physical and legal presence within the country.
Some of the proposals being put forward are:
- Establishing an office within the country
- Assigning compliance officers
- Creating legal liability for the regulatory request
- Cooperation with Indian law enforcement authorities
How the Proposed Rules Build on the 2022 CERT-In Directive
This current recommendation comes after the contentious security instructions introduced by the Indian Computer Emergency Response Team (CERT-In) in 2022. The instructions necessitated the collection and storage of substantial personal details of customers of the VPN provider in question.
The 2022 instruction elicited criticisms by privacy activists and foreign-based virtual private network companies due to the nature of the requirements and conflict of the same with the essence of a virtual private network, which is the privacy of the users.
Rather than comply with the data storage requirement and maintain their physical servers in India, some top VPN companies simply withdrew their Indian servers completely. Some of the examples include the following: Proton VPN, NordVPN, ExpressVPN, and Surfshark which moved their physical servers out of India but continued with Indian virtual servers via Singapore.
There is an acknowledgment by government representatives that the previous guidelines may not have elicited sufficient compliance as expected.
What Could Change for VPN Companies and Users?
Should the proposed framework be adopted, it will be among the most substantial regulatory reform for VPN providers working in India.
For VPN companies, the obligation to have a local office and compliance officers will add more duties and increase the cost of compliance. For sure, companies will be required to appoint people who will take care of governmental notifications, handle legal inquiries, and comply with the regulations of India in the sphere of cybersecurity.
For users, the ability to use a VPN instantly will not be affected. Users will still be able to use their VPN apps for legitimate purposes like securing Wi-Fi connections, doing business, or simply maintaining privacy online. Providers might have some additional responsibilities related to legal matters.
However, the industry experts observe that the aim of the government seems to be more about making sure that these service providers comply with the law rather than imposing a ban on such services. Meanwhile, the privacy advocates feel that any new compliance requirement should be well balanced with the users’ right to privacy.
Organizations using VPN services for secure access and communication are expected to follow these developments carefully since any compliance requirements may influence the business model of international VPN providers in India.
Meanwhile, the discussion is still ongoing, and no legislative measures have been introduced yet, and the government is considering the format of the suggested framework.
Digital Governance Continues to Evolve
These regulations for the VPNs come in light of India’s overall move to regulate their digital infrastructure and cybersecurity and the online platforms. Over the years, the Indian government has implemented various regulations that affect the social media intermediaries, digital services, cybersecurity incidents and data governance.
While proponents of these regulations say that the compliance will go a long way in ensuring better investigation into the cybercrimes and better national security, critics say that these regulations must be well drafted so as not to harm the cybersecurity efforts and deter foreign technology vendors from working in India.
In any case, the final form of these regulations will reveal how India plans to balance all these interests in the coming years.
As policy makers engage in their deliberations, the virtual private network providers, tech firms, cybersecurity professionals, and internet users would keep an eye out for what is coming from the government next.
Keep yourself posted with the latest on technology policies, cybersecurity rules, artificial intelligence, and digital governance of India.