India has no standalone trade secrets statute -- protection instead rests on confidentiality agreements enforced under the Indian Contract Act, 1872 and the common-law action for breach of confidence, since a proposed Trade Secrets (Protection) Bill has remained pending, not enacted, for several years.
No dedicated trade secrets law -- contract and common law fill the gap
Unlike patents, trademarks, or copyright, India has no codified trade secrets statute. Protection instead
rests on confidentiality and non-disclosure agreements (NDAs) enforced under the Indian Contract Act, 1872,
and on the common-law equitable action for breach of confidence, developed through case law rather than a
single statute. A proposed Trade Secrets (Protection) Bill, based on recommendations from the Law
Commission’s 222nd Report, has been under discussion for several years but has not been introduced,
passed, or notified as law -- it remains a proposed reform, not current law, and its status should be checked
against the current parliamentary bill tracker before assuming otherwise.
Confidentiality clauses versus non-compete clauses
A genuinely important distinction under Indian law: confidentiality obligations that simply require an
employee or contractor not to disclose or use specific confidential information are generally enforceable.
Post-employment non-compete clauses -- restricting a former employee from working in the same field at all --
are a different matter, since Section 27 of the Indian Contract Act, 1872 voids agreements in restraint of
trade, and Indian courts have generally struck down post-employment non-competes as unenforceable, even where
the employer had a legitimate interest in protecting trade secrets. This makes carefully drafted confidentiality
clauses, rather than broad non-competes, the more reliable tool for protecting business information in India.
Remedies for breach of confidence
A business whose confidential information is misused can seek an interim or permanent injunction to
restrain further use or disclosure, damages, an account of profits, and delivery-up or destruction of
confidential material, pursued through an ordinary civil suit (often combining a contract claim with the
common-law breach-of-confidence claim) rather than any specialized trade-secrets tribunal. Where confidential
business information is misappropriated by someone with lawful access to it, Section 316 of the Bharatiya
Nyaya Sanhita, 2023 (criminal breach of trust) can also potentially apply.
Is there a specific “Trade Secrets Act” in India I should cite in a contract?
No -- there is currently no standalone trade secrets statute in India. Protection is achieved through
well-drafted confidentiality agreements enforced under the Indian Contract Act, 1872, and through the
common-law action for breach of confidence, rather than a dedicated trade-secrets law.
Can I stop a former employee from joining a competitor to protect my trade secrets?
Generally not through a blanket non-compete clause -- Section 27 of the Indian Contract Act voids
agreements in restraint of trade, and Indian courts have generally refused to enforce post-employment
non-competes. A well-drafted confidentiality obligation restricting use or disclosure of specific confidential
information is a more reliable and generally enforceable tool.
Is the Trade Secrets (Protection) Bill law yet?
No -- as of the most recent information available, the Bill remains a proposed reform that has not been
introduced, passed by Parliament, or notified as law, so India’s trade secrets protection continues to
rely on contract and common law rather than a codified statute.
