Decoding India's Privacy Framework: Legal Mandates for Algorithmic Transparency and Explainability in the Digital Age and its Economic Implications

Abstract: As Artificial Intelligence (AI) continues to dramatically shift the landscape of global economies and societies, this paper intends to examine India's Digital Data Personal Data Protection Act, 2023. While the concept of algorithmic transparency and explainability is not explicitly mentioned in the Act, explainable AI systems are necessary for specific principles under the Act, particularly the Right to Information of Data Principals and obligations of data fiduciaries. Since the Act aims to establish a secure and fair digital ecosystem, the opportunities for economic advantages, along with the compliance costs, are dealt with under the Act, via enhanced trust and responsible innovation. Keywords: Algorithmic Transparency, Data Protection, Right To Information, Data Principal, Artificial Intelligence