Government to add Amazon, Flipkart data directly in Inflation Index revamp, what this means

The government has decided to begin collecting price data directly from e-commerce companies like Amazon and Flipkart to revamp its benchmark inflation index . A report citing the head of the Ministry of Statistics and Program Implementation ( MoSPI ) claimed that this move is aimed at capturing shifting consumption habits and making the retail inflation data more accurate and robust. By integrating online prices, the government will account for the rising share of e-commerce in household spending. The move aligns with a global trend, as other countries, including the US and South Korea, have also started to incorporate online and scanner data into their inflation measures. A report by the news agency Reuters cited a private study to claim that India had around 270 million online shoppers in 2024, while this number is expected to rise by 22% each year.


What government said about using Amazon, Flipkart data for Inflation Index

In an interview with Reuters, Saurabh Garg, secretary of MoSPI, said: “The 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.”

The government has also asked e-commerce companies to provide weekly average prices of goods, which will be verified against a wider dataset to prevent distortions, the report added.


What this means for users

E-commerce now makes up a significant portion of Indian household spending. As per the Household Consumption Expenditure Survey (HCES), this spending is significant enough to be included in the Consumer Price Index (CPI) basket, Garg said to Reuters. He also noted that the goal is to make the index more representative and up-to-date.

When the new CPI series launches early next year, it will use extra data sources and adjust weightages since a recent survey showed Indians now spend a smaller share of their budget on food. The update will also add online data for things like airfares and streaming services, as these have become major spending areas.

Apart from the changes in sources and items in the new CPI, multiple other major statistical upgrades are planned in the next two years, Garg added. This includes a new GDP series with an updated base year of 2022-23, he noted.

Earlier this year, the government expanded its monthly employment survey sample to improve accuracy and credibility, aligning it with global standards. It is also developing a new quarterly Index of Services Production (ISP) that will enhance the government's capability to track the services sector better. This sector makes up over half of India’s GDP, and the rollout of the new index is planned for mid-next year.

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