India to Source Amazon, Flipkart Data in Inflation Revamp; Plans Services Index Rollout

India is preparing a major overhaul of how it measures inflation by incorporating price data directly from leading e-commerce platforms such as Amazon and Walmart-owned Flipkart. The initiative, led by the Ministry of Statistics and Programme Implementation, is aimed at reflecting the country’s fast-changing consumption patterns and addressing concerns that current data no longer captures how households actually spend.

By tapping into online prices, India’s retail inflation numbers are expected to become more accurate and timely. This move aligns with global best practices, as several advanced economies—including the United States and South Korea—already use online and scanner-based data for consumer price indexes. With nearly 270 million online shoppers in 2024 and an annual growth rate of around 22%, digital spending has become too significant to ignore.

According to ministry secretary Saurabh Garg, the government has already begun scraping e-commerce prices across 12 major cities and is negotiating with platforms to gain direct access. Companies are being asked to share weekly average prices of key goods, which will be cross-verified against broader datasets to prevent distortions. The new inflation series, scheduled for rollout early next year, will also revise weightages in line with recent household expenditure surveys showing a declining share of food in consumer budgets.

Expanding Scope of CPI

The revamped index won’t just rely on e-commerce data. It will also integrate prices from sectors where digital platforms dominate, including air travel and streaming services. This broader approach is intended to make the Consumer Price Index (CPI) more representative of modern consumption.

At the same time, the statistics ministry is pushing forward with other major updates. In the coming two years, it intends to roll out a new GDP series using 2022–23 as the base year, along with more detailed labour market data. Household coverage in monthly employment surveys has already been expanded from around 45,000 to nearly double that figure, improving the precision of estimates.

Garg emphasized that the revised labour surveys follow international norms, ensuring credibility and comparability.

New Services Index in the Pipeline

The ministry is also designing a quarterly Index of Services Production (ISP) to capture performance in the services sector, which accounts for more than half of India’s GDP but is currently tracked less frequently than manufacturing. The ISP is likely to be launched by mid-2025.

Summary:

India’s planned revamp of its inflation index marks a significant modernization of its economic statistics. By integrating e-commerce, travel, and digital service prices into the CPI, the government aims to capture real-world consumption trends more accurately. Coupled with a new GDP series, expanded labour data, and the upcoming services index, these reforms could provide policymakers, businesses, and investors with a clearer and timelier picture of India’s fast-evolving economy.

Frequently Asked Questions (FAQs)

1. Why is India including Amazon and Flipkart data in its inflation index?

India is integrating e-commerce data to reflect changing consumer habits, as more households shop online. This will make the Consumer Price Index (CPI) more accurate and relevant.

2. How will e-commerce data improve inflation measurement?

By capturing real-time online prices of goods and services, the CPI will better track actual household spending patterns, especially in fast-growing sectors like digital shopping, travel, and streaming.

3. When will the new inflation index be rolled out?

The revamped CPI series is expected to launch early next year, with updated weightages and inclusion of new data sources.

4. What other changes are planned in India’s economic statistics?

Alongside the CPI revamp, the government plans to release a new GDP series with 2022–23 as the base year, expand labour force surveys, and introduce an Index of Services Production (ISP).

5. What is the Index of Services Production (ISP)?

The ISP is a new quarterly indicator designed to measure output in India’s services sector, which makes up more than half of the country’s GDP. It is likely to be launched by mid-2025.

6. How does this move compare with global practices?

Several countries, including the U.S. and South Korea, already use online and scanner-based data for their inflation measures. India’s shift aligns its statistical methods with international standards.

7. How many online shoppers are there in India?

India had around 270 million online shoppers in 2024, and the number is growing at an annual rate of about 22%, highlighting the importance of e-commerce in consumer spending.

8. Why is the share of food in the CPI being reduced?

Recent household surveys show that Indians are spending a smaller portion of their budget on food and more on services like travel, housing, and entertainment, requiring a shift in CPI weightages.