Mumbai: In a significant shift to enhance inflation tracking, India will begin sourcing price data directly from major e-commerce platforms like Amazon and Flipkart. This initiative, spearheaded by the Ministry of Statistics and Program Implementation (MoSPI), aims to provide a more accurate depiction of consumer spending habits, particularly as online shopping becomes a crucial aspect of the Indian economy.
Revamping Inflation Tracking in India
The Indian government is taking ground-breaking steps to overhaul its inflation tracking systems by directly gathering price data from e-commerce giants such as Amazon and Flipkart. Announced by the MoSPI’s Secretary Saurabh Garg on August 25, 2025, this initiative aims to accurately reflect the changing consumption patterns of Indian citizens, addressing concerns about outdated data.
The Ministry has already begun scraping prices from e-commerce websites in 12 major cities, covering regions that include a collective population of over 2.5 million. This strategic data collection effort is part of India’s broader goal to refine its measuring tools in light of the significant shareholder, e-commerce, in household expenditures. Garg stated that the ministry is in negotiations with these platforms to gain direct access to this valuable data, demonstrating a commitment to improving the quality of retail inflation metrics.
Enhancing Retail Inflation Data
With online shopping rapidly increasing, the new initiative is expected to enhance the accuracy of India’s retail inflation data. In 2024, India boasted nearly 270 million online shoppers, a figure that is projected to grow by 22% annually. Current figures reveal that an increasing share of household spending is directed toward e-commerce.
“Statistics ministry has begun scraping prices from e-commerce websites in 12 cities with populations above 2.5 million and is in talks with platforms to access data directly,” Garg emphasized in an interview. The objective is to create a more representative Consumer Price Index (CPI) that incorporates the notable shift toward online purchasing—an evolving aspect of the Indian economy that can no longer be ignored.
Notably, countries like the United States and South Korea have already adopted similar strategies, integrating online prices into their inflation tracking systems and highlighting a global trend towards modernizing economic metrics.
The Impact of E-commerce on Household Spending
As e-commerce continues to shape spending behaviors, the MoSPI aims to include this category in India’s CPI basket as it is now deemed significant enough for consideration. “With the share of e-commerce expenses in household spending and the Household Consumption Expenditure Survey (HCES) rising, this change will make a noticeable impact,” said Garg.
The secretary noted that recent consumption surveys revealed a decline in food budget allocations, leading to a necessary adjustment in expenditure weightages. This adaptation ensures that the CPI reflects current realities and trends, ultimately guiding policy decisions in the banking sector and impacting overall economic health.
In addition to e-commerce, the upcoming changes to the CPI index will also factor in additional services such as airfares and streaming media expenses, which have become integral to the modern consumer’s budget. These developments highlight the need to evolve traditional economic indicators to match contemporary spending habits.
Preparing for the Future
Saurabh Garg indicated that these changes would likely be implemented by the middle of next year, offering citizens a more accurate portrayal of price dynamics and inflation. This shift promises a more timely and relevant index, better suited to reflect the financial realities faced by everyday consumers.
The initiative is a clear vote of confidence in adapting to a digitized economy while providing a framework for economic planning by policymakers and the RBI. With rising inflation levels and evolving spending habits, a responsive CPI not only benefits consumers but also helps economists make informed predictions about the Indian economy’s trajectory.
As the Indian landscape continues to evolve, this project reflects a substantial commitment to keeping inflation tracking methods up-to-date, ultimately benefiting a growing population of online shoppers and the economy as a whole.
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Original source: www.livemint.com
