NDA template for India: free mutual NDA format with clause guide
A free mutual non-disclosure agreement template written for Indian law, with what each clause does, how to stamp and sign it, and when a template is not enough.
A non-disclosure agreement (NDA) is a contract in which one or both parties promise to keep certain information confidential and to use it only for an agreed purpose. In India it is governed by the Indian Contract Act, 1872, so it binds the parties like any other contract once it is properly signed and stamped. Below is a mutual NDA template you can adapt, followed by what each clause does and the points people most often get wrong.
One-way or mutual?
- One-way (unilateral) NDA: only one side shares confidential information — for example, a startup showing its product to a freelancer or vendor.
- Mutual (bilateral) NDA: both sides share — for example, two companies exploring a partnership, or a buyer and seller in deal talks.
- If you are unsure, a mutual NDA is the safer default: it protects whatever either side ends up disclosing.
Clauses every NDA needs
- Definition of confidential information — broad enough to cover what you will share (code, designs, customer lists, pricing, roadmaps), whether marked confidential or not.
- Exclusions — information that is already public, already known to the recipient, independently developed, or received lawfully from someone else.
- Purpose — the specific reason the information is shared. Use outside that purpose should be a breach.
- Obligations — keep it confidential, use reasonable care, share only with people who need to know and are bound by similar duties.
- Compelled disclosure — what happens if a court or regulator orders disclosure (notify the other side first, where allowed).
- Term — how long the duty lasts. Two to five years after the last disclosure is common; trade secrets are usually protected for as long as they stay secret.
- Return or destruction — on request or when talks end.
- Remedies — a right to seek an injunction under the Specific Relief Act, 1963, as well as damages.
- Governing law, courts or arbitration — which law applies and where disputes are decided.
Free mutual NDA template
Stamping and signing in India
An NDA is an agreement, so it must be stamped under the stamp law of the state where it is signed. Duty for a simple agreement is usually small, and most states offer e-stamp paper online or through authorised vendors. Don't skip it: under Section 35 of the Indian Stamp Act, 1899 (and the equivalent state laws), an unstamped or under-stamped agreement cannot be relied on as evidence until the duty and a penalty are paid.
NDAs can be signed with a pen or electronically. Electronic signatures are recognised under the Information Technology Act, 2000. Two witnesses are not legally required for most NDAs, but they make proof easier if the signature is ever disputed.
Where templates go wrong
- Non-compete clauses: Section 27 of the Indian Contract Act makes agreements in restraint of trade void, so a clause stopping someone from working in your field after the relationship ends is generally unenforceable. Keep the NDA about confidentiality.
- A purpose that is too vague, so the other side can argue any use was allowed.
- No clause covering the recipient's employees and contractors, who are the people most likely to leak information.
- Signing on behalf of a company without checking the signatory's authority.
When to get an NDA drafted instead
A template works for routine, low-stakes conversations. If you are sharing source code, a product roadmap, investor data or anything that would seriously hurt you in a competitor's hands, have the NDA drafted around exactly what you will share, who will see it and how long it needs protecting. That is also the time to add clauses on non-solicitation of employees, residuals, and data protection.