Inclusion of E-commerce Data in Consumer Price Index (CPI)

The Government is in the process of integrating E-commerce data into the new Consumer Price Index (CPI).

Objective and Implementation

• Initiated by the Ministry of Statistics and Programme Implementation (MoSPI).
• Aim: To better reflect changing consumer spending patterns in retail inflation data.
• A revised CPI series is scheduled to be released early next year.

Inter-ministerial Discussions

• MoSPI is in talks with: 
  • Department for Promotion of Industry and Internal Trade (DPIIT)
  • Ministry of Electronics and Information Technology (MeitY)
• Discussions with E-commerce companies focus on data sharing without affecting business strategies or customer privacy.

Base Year and Item Weight Updates

• The new CPI series will use 2024 as the base year, replacing 2012.
• Weights for items will be based on the Household Consumption Expenditure Survey (HCES) 2022-23.

Current CPI Tracking

• CPI currently tracks 299 items across 1,181 rural and 1,114 urban markets.

Impact and Projections

• Inclusion of E-commerce data will enhance the CPI's accuracy and coverage.
• Online purchases account for 7% of household purchases (11% urban, 3.6% rural), reflecting changing consumer behavior.
• Ecommerce sector growth: 
  • Projected to reach $550 billion by 2030 from $105 billion in 2023.
• Online shoppers in tier 2 and 3 cities increased to 56% in FY24 from 46% in FY20.