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As India advances towards becoming a developed nation by 2047, e-commerce stands as both catalyst and exemplar of inclusive progress
India stands at a pivotal moment in its retail evolution. With a market valued at US $1.06 trillion and projected to nearly double US $1.93 trillion by 2030, e-commerce is set to contribute close to 16 per cent. What was once seen as a convenient alternative has now become the preferred shopping channel for millions of households.

This festive season alone, the share of households choosing e-commerce as their primary mode of shopping surged by 115 per cent, with more than 60 per cent urban families planning to shop online, according to a recent LocalCircles report. These shifts mark more than a festive upswing—they signal a structural transformation in buying behaviour that is reshaping retail, widening opportunities for small businesses, and fueling India’s digital and economic momentum.

Central to this change is the growing trust in digital platforms that offer wider product choices, unmatched convenience, and the assurance of easy returns and refunds. What makes this transformation even more significant is its penetration beyond metros. The Deloitte-FICCI report highlights that Tier II and III cities now generate over 60 per cent of all e-commerce transactions in India. This democratisation of opportunity has been powered by affordable smartphones, seamless digital payments, and trustworthy delivery infrastructure.

The true promise of India’s e-commerce revolution lies in how it empowers micro, small, and medium enterprises. Digital marketplaces now connect millions of small sellers—many from India’s heartland—with customers nationwide, ensuring that festive prosperity flows well beyond metropolitan centers.

Government initiatives such as One District One Product (ODOP) and the Production-Linked Incentive (PLI) scheme are further amplifying this transformation. By providing policy support, market access, and incentives, these programmes are creating structured pathways for local entrepreneurs to participate meaningfully in the digital economy.

E-commerce is also proving to be a powerful employment engine. Each festive season generates substantial employment across logistics, packaging, customer service, and technology roles. This serves as both an economic multiplier and an engine for skills development, particularly for young people in smaller cities and towns.

For India’s digital commerce ecosystem to realise its full potential, trust remains fundamental. The recent LocalCircles survey shows that Indian consumers place the greatest trust in platforms with transparent and effective returns and refund processes, with Amazon emerging as the most preferred among e-commerce sites, while Big Basket leads among quick commerce platforms. Nearly 90 per cent households also cite quality assurance, fair pricing, and hassle-free returns as decisive factors in their shopping choices. The takeaway is clear: customer trust is key, and platforms that prioritise consumer protection are not only driving festive sales but also building lasting customer relationships that sustain growth year-round.

The shift to digital payments further illustrates this trust transformation, with over 90 per cent of urban households expected to transact digitally this festive season. Embedded payment solutions, streamlined checkouts, and robust security measures have made online commerce safer and more frictionless than ever, reducing cash dependence while creating efficiencies throughout the value chain.

As India advances towards becoming a developed nation by 2047, e-commerce stands as both catalyst and exemplar of inclusive progress. By connecting remote artisans with global markets, digitising traditional businesses, and creating economic opportunities across the socioeconomic spectrum, e-commerce demonstrates how technology can drive equitable growth and global value chain integration.

The festive season of 2025 may indeed mark a turning point—not just in sales figures but in how we conceptualise commerce itself. By harmonising technological innovation with trust and inclusivity, India’s digital marketplace can establish global benchmarks for responsible retail.

As the lights of celebration brighten homes across our nation, we must reflect on a deeper truth: true progress isn’t measured solely by transaction volumes or growth percentages, but by how we empower communities, preserve cultural heritage, and create opportunities for all Indians. In this journey, e-commerce isn’t simply facilitating commerce—it’s helping write the next chapter of India’s economic story, where every business, consumer, and community has the opportunity to thrive.

India is, therefore, uniquely positioned to drive e-commerce policy discussions in the APAC region by hosting the 2nd APAC E-commerce Policy Summit on November 3-4, 2025, in New Delhi. The summit provides a unique opportunity for all stakeholders in the ecosystem to interact with an objective that digital transformation leaves no one behind.

The author is professor, Indian Council for Research on International Economic Relation

The Digital Personal Data Protection Rules, 2025 provide the operational framework for implementing the Digital Personal Data Protection Act, 2023. They define procedural requirements, compliance mechanisms, consent management norms, data breach obligations, children’s data safeguards, and the functioning of the Data Protection Board (DPB).

These Rules significantly strengthen India’s digital governance architecture, improving consumer trust, enabling global interoperability, and operationalizing state capacity for data protection at scale. They also introduce graded compliance obligations for Significant Data Fiduciaries (SDFs), establish a regulated ecosystem for Consent Managers, and create a digital-first regulatory enforcement system.

The Rules operationalize the DPDP Act by ensuring that digital personal data of Indian citizens is processed lawfully, fairly, and transparently. The core actors under this framework are Data Fiduciaries (entities processing data), Data Principals (individuals), and Consent Managers.

Consent is positioned at the heart of the regime. It must be explicit, verifiable, and based on clear, understandable notices. For children and persons with disabilities, consent must come from parents or lawful guardians through verifiable methods. Individuals are granted straightforward mechanisms to withdraw consent, request access to their data, seek corrections, or demand erasure.

Data Fiduciaries are required to implement strong security safeguards including encryption, access controls, logging, and risk-mitigation processes. In the event of a breach, both the affected Data Principals and the DPB must be informed within 72 hours. Logs of consent and data access must be preserved for at least one year, while Consent Managers must retain consent logs for seven years.

Only the minimum necessary data for a specified purpose may be collected or processed. Once the purpose is fulfilled, the data must be erased unless legal requirements warrant further retention, and individuals must be duly notified of such erasure.

Significant Data Fiduciaries face enhanced responsibilities: they must conduct regular data protection impact assessments and undergo independent audits. Cross-border transfers are permitted, but only under conditions that guarantee adequate protection, with India retaining the right to restrict transfers for national security or strategic considerations.

The Rules empower individuals with clear rights to access, correct, or delete their personal data. They also guarantee an enforceable right to grievance redressal through digital mechanisms, ensuring transparency and timely responses from Data Fiduciaries.

The Rules represent India’s most decisive step in safeguarding digital privacy, reinforcing the fundamental right to privacy under Article 21 of the Constitution. While inspired by global frameworks such as the EU’s GDPR, they remain tailored to India’s unique digital and socio-economic landscape.

By mandating transparent consent processes, strong security standards, and effective redressal pathways, the Rules aim to reinforce trust in digital services. This trust is critical to sustaining growth in India’s digital economy, startup ecosystem, and innovation sectors.

The 18-month phased rollout offers organizations time to redesign systems, update processes, and align operations with the new compliance architecture. The intention is to ensure smooth adaptation while encouraging proactive compliance.

For businesses, especially those handling large volumes of data or engaging in cross-border data flows—the Rules necessitate significant changes in data governance, consumer interaction, and operational practices. The financial and regulatory penalties for non-compliance serve as strong incentives for organizations to adopt a privacy-first approach.

“The DPDP Rules 2025 mark an important and decisive step in building a coherent, implementable data protection framework for India. By defining the consent architecture, strengthening breach-notification obligations, and establishing greater accountability for data fiduciaries including state entities, the Rules enhance transparency in data processing and improve grievance redressal. These elements are essential for accelerating trust in India’s digital economy and aligning the country more closely with global best practices.”

“These rules will enable building digital trust among the people, better compliance by enterprises and quicker decisions by Data Protection Board being digital borne. Principle based approach, severity-based compliance and penalty mechanism and decriminalisation framework will promote technology, innovation and startups. Rules give a clear road map for planning and implementation guidelines regarding children’s data, significant fiduciaries and organisations which will ensure robust personal data privacy and secure data governance. A staggered implementation approach may help in course corrections as different provisions come into effect.”

“Our 2024 study surveying Indian companies on DPDPA implementation revealed a stark reality: most firms estimate at least 24 months to comply, grappling with the immense complexity of mapping data processes, overhauling technical architectures, and redefining product compliance. This aligns with global precedents – two years in Brazil, Japan, and the EU – yet with resource constraints forcing sequential rollouts, a longer grace period is essential to avoid chaos. As deadlines loom, expect widespread calls for extensions to the government. Compounding this, the rules’ failure to exempt behavioral monitoring, tracking, and targeted ads for products that are beneficial for children will deliver a devastating blow to child-focused industries like animation, toys, and publishing.”

India’s Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the economy, with over 63 million businesses employing more than 110 million people. They contributed approximately 30% to India’s GDP and 45.73% to its exports in 2023-24, particularly in sectors like textiles, handicrafts, and food processing. Recognizing this, the government has initiated several reforms to strengthen the ecosystem. The Foreign Trade Policy (FTP) 2023, for instance, emphasizes ease of doing business, reduced compliance burdens, and incentives for e-commerce exports. Complementing this, schemes like the Export Development and Market Promotion Scheme (EDMPS) are helping MSMEs expand their international footprint by supporting participation in trade fairs, buyer-seller meets, and international marketing initiatives.

However, despite their significance, MSMEs face challenges such as limited access to capital, outdated technology, and regulatory complexities. The rise of e-commerce has offered a significant opportunity for these businesses to tap into global markets.

E-commerce platforms like Amazon, eBay, and Etsy have revolutionized global trade for MSMEs by reducing traditional barriers such as high marketing costs and complex distribution networks. These platforms connect small businesses directly to international customers, expanding their reach far beyond local markets. Competing on a global stage also compels MSMEs to raise their standards of quality and efficiency, which not only strengthens their international presence but simultaneously enhances their contribution to the domestic market. With the support of platform analytics, businesses can gain valuable insights into consumer preferences and adapt their offerings to meet global demand. By eliminating intermediaries, e-commerce has lowered costs and improved profit margins.

The global e-commerce market, valued at $800 billion in 2024 and projected to reach $2 trillion by 2030, presents immense opportunities. India aims to capture a 10% share, targeting $200–300 billion in exports from the current $5 billion. Growing demand for Indian products like millets, handicrafts, and textiles, combined with 800 million internet users and increasing digital penetration in Tier-2 and Tier-3 cities, positions MSMEs to contribute significantly to India’s $1 trillion export goal by 2030. The digital transformation of MSMEs, with 72% of transactions now digital, further enhances their potential to scale globally.

The Indian government has introduced several initiatives to bolster MSME e-commerce exports. In 2024, the Directorate General of Foreign Trade (DGFT) launched E-Commerce Export Hubs (ECEHs), offering integrated facilities like customs clearance, warehousing, and logistics support. Five pilot hubs are operational, with plans for expansion. The Foreign Trade Policy (FTP) 2023 simplified export processes, reduced compliance fees, and extended benefits like Duty Drawback and RoDTEP to courier and postal exports. The DGFT’s “E-Commerce Exports Handbook for MSMEs,” serves as a comprehensive guide, translated into multiple Indian languages for accessibility.

MSMEs face significant barriers in leveraging e-commerce for exports. Logistics costs in India, at 13–14% of GDP compared to a global average of 8–10%, erode competitiveness. Supply chain inefficiencies, such as delays in customs clearance, lead to penalties and shipment rejections. Payment challenges, including high Export Data Processing & Monitoring System (EDPMS) fees and restrictive shipping value variation limits, disproportionately affect small exporters. Compliance with international standards for certifications, packaging, and labelling strains limited resources. The digital divide, particularly in rural areas, and low digital literacy among small entrepreneurs hinder platform adoption. Moreover, many MSMEs operate informally, limiting access to formal financing and global value chains.

Addressing these challenges requires a blend of technology, policy reforms, and capacity building. Various ecommerce platforms offer cost-effective tools for inventory and compliance management, while AI-driven solutions, can automate customs processes to reduce errors. Extending the RBI’s 2024 EDPMS directive permanently and waiving fees for small shipments would alleviate financial burdens. Expanding ECEHs and partnering with logistics providers could lower delivery costs. Blockchain-based platforms could ensure secure, transparent transactions, while AI-powered mentorship programs could provide personalized guidance, especially for rural MSMEs.

Trade agreements like the India-UK Comprehensive Economic and Trade Agreement (CETA), signed in 2025, provide zero-duty access for 99% of India’s exports, benefiting MSME-heavy sectors like textiles and jewellery. With total bilateral trade at $56 billion in 2024–25, CETA’s dedicated MSME chapter includes contact points and information exchange on regulations and market access. Similar provisions are being pursued in negotiations with the US and EU. These agreements and global collaborations are critical for MSMEs to navigate complex trade environments.

India’s MSMEs hold immense potential to drive e-commerce exports, contributing to the $2 trillion export target by 2030. Government initiatives, trade agreements, and digital tools provide a strong foundation, but challenges in logistics, payments, and digital access persist. A multi-pronged strategy leveraging technology, refining policies, and building grassroots capacity can empower MSMEs to compete globally. By fostering digital transformation, enhancing market access, and addressing structural barriers, India can position its MSMEs as engines of inclusive economic growth, ensuring they thrive in the global digital economy.

*The Author is a leading policy professional at MSL Group

India’s e-commerce sector has witnessed remarkable growth, with sectoral revenues projected to reach $163 billion by 2026. Between 2020-2023, 125 million Indians began using e-commerce platforms, with 80 million more consumers projected to join by 2025. Beyond Tier-1 markets, Tier-2 and smaller markets also actively engage with e-commerce platforms, with over 80% of Amazon and Meesho sales originating from these regions during the 2023 festive season. This increase in omni-channel adoption is largely attributed to successful market expansion, broader consumer adoption, and inclusive digital access due to greater internet and mobile penetration into Tier-2 and smaller markets.

Trust has transitioned from being an aspirational ideal to a crucial foundation for India’s digital marketplace. Leading policy research institutions highlight that sustainable and orderly growth of e-commerce depends directly on transparent pricing, verified sellers, and robust grievance redressal frameworks. Embedding these principles within platform design and policies to reinforce consumer confidence can promote equitable participation across diverse user groups.

A major risk to trust, and one gaining renewed focus from regulators and consumers, are platform design and practices such as dark patterns. Dark patterns leverage user interface design to subtly influence consumers to make certain choices, often without full awareness. An example of dark patterns is hidden costs, where additional charges are disclosed only at the final payment stage. Practices of this nature particularly impact price-sensitive Indian consumers and are classified as “unfair trade practices”.

A robust grievance redressal mechanism is a crucial facet of reinforcing consumer trust. In FY2023-24, the Department of Consumer Affairs’ National Consumer Helpline (NCH) noted that most e-commerce grievances related to refund delays, delivery issues, and product discrepancies, underscoring the importance of responsive and accessible resolution processes. Notably, e-commerce accounted for 36.1% of the total complaints registered by the helpline. Strengthening and streamlining grievance redressal and expanding multi-lingual, omni-channel access points, will ensure timely handling of issues while enhancing consumer confidence across the diverse Indian market. Continued collaboration among regulators, platforms, and consumer groups is essential to evolve these mechanisms in line with the sector’s dynamic growth and consumer expectations.

In response to the evolving e-commerce landscape and its impact on consumers, the Indian government has begun adopting a more interventionist stance. The CCPA’s 2025 directive mandating self-audits of e-commerce platforms for dark patterns within three months signals a shift toward proactive governance. Platforms have been asked to file self-declarations confirming compliance, though such voluntary disclosures need to be supplemented with strong enforcement mechanisms.

The BIS guidelines on self-governance, which emphasise transparent algorithms, seller KYC, and consumer-centric returns and refund processes, offer a more holistic framework. Notably, the draft also encourages fair competition by disallowing preferential treatment of sellers. A joint working group of regulators, academia, and consumer bodies is currently reviewing feedback for finalisation, pursuing a more consultative approach to regulation.

While the government has made significant progress in drafting forward-looking policies which aimed at building trust and confidence among consumers, some facets need further attention. Consequently, enforcement approaches and platform compliance continue to evolve in response to the dynamic digital landscape, with ongoing efforts focused on ensuring that consumers are increasingly aware of their rights as digital literacy expands to match new modes of online interaction.

India’s digital commerce story has been one of scale and speed. Underscoring its acceleration is the growing consensus amongst experts that trust is not an abstract value but an essential infrastructure. The CUTS Institute notes that consumer confidence hinges on clear pricing, verified sellers, and robust grievance redressal systems. Regulatory efforts, including the CCPA’s crackdown on dark patterns and the BIS’s draft self-governance guidelines, reflect a growing policy consensus that fairness and transparency must be built into platform architecture.

Industry voices also recognise this shift. PwC’s consumer insights suggest that platforms investing in ethical design and responsive service are better positioned to retain users, especially in emerging markets. However, the effectiveness of these interventions depends on consistent enforcement and consumer awareness.

The way forward is not unilateral regulation but shared accountability—between government, platforms, and consumers. Building trust must be deliberate, measurable, and systemic if India’s digital commerce economy is to be both expansive and equitable.

*The Author is a leading policy professional at MSL Group

India’s gig economy has emerged as a dynamic engine of economic growth and job creation. With millions engaged in platform-based work, it reflects the changing nature of employment in a rapidly digitizing world. While this transformation offers vast promise, the current regulatory framework does not account for the nuances of the gig economy, especially with regard to social security benefits. The absence of a unified national framework has left both platforms and workers navigating a fragmented and often confusing landscape. There is a need for a central policy that harmonizies efforts of the government and platforms toward the welfare of gig workers.

The Indian gig economy has expanded at an extraordinary pace. In 2020–21, an estimated 7.7 million workers were engaged in gig and platform-based work. This number is projected to triple to 23.5 million by 2029–30, with the sector’s market size expected to reach $455 billion by 2024. Several forces are driving this expansion. Widespread access to smartphones and affordable internet has enabled seamless digital interactions between platforms, service providers, and customers. A robust startup ecosystem has created significant opportunities for India’s growing labour force. The appeal of autonomy and flexibility has attracted a younger, tech-savvy workforce that prioritizes work-life balance. Moreover, for many, gig work provides either supplementary income or a crucial livelihood in an environment of underemployment and rising living costs.

Despite its scale, the gig economy operates in a regulatory grey zone. Most platforms classify workers as “independent contractors” or “partners,” placing them outside the scope of labor laws that guarantee minimum wages, job security, or access to social security benefits. Recognizing this gap, the central government introduced the Code on Social Security in 2020, which legally acknowledged gig and platform workers as a distinct category for the first time. However, the delayed implementation of this law has left a regulatory vacuum, prompting states to take matters into their own hands.

Rajasthan became the first state to pass the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023, establishing a welfare board and a dedicated social security fund. Karnataka followed with a similar ordinance. While these moves signal progress, they have also created a patchwork of rules. Each state’s approach differs in terms of registration processes, welfare levies, and compliance requirements. For companies operating across India, this means navigating a maze of inconsistent obligations, driving up compliance costs and administrative burdens. Smaller startups are particularly disadvantaged, limiting their ability to scale.

Workers, too, face uncertainty. Benefits provided under state laws are not portable, meaning protections may lapse when workers move across states. For a workforce that is inherently mobile—often migrating in search of opportunities—this lack of portability undermines both security and equity. The result is a system that, while well-intentioned, risks failing the very workers it seeks to protect.

To address these challenges, India must move towards a unified central framework that ensures clarity and consistency nationwide, while still allowing for state-level implementation. Such a framework would begin with establishing clear legal definitions of gig and platform workers to remove ambiguity and prevent misclassification. Social security benefits must be made portable through a national registry linked to Aadhaar, ensuring that entitlements such as health insurance and pensions follow workers seamlessly across states and platforms. To maintain coverage for all, including those working with smaller or newer platforms, a central welfare fund should be created, with joint contributions from the government, platforms, and workers.

Equally important is simplifying compliance for businesses. A single-window digital system for registration, reporting, and contributions would ease administrative burdens, reduce costs, and encourage innovation, especially among smaller startups. Alongside this, gig workers must have a voice in shaping policies that affect them. Institutional mechanisms such as welfare boards or digital councils would ensure that their perspectives are incorporated, balancing the need for flexibility with the necessity of protection. Finally, implementation should be phased, with states acting as partners within a common national framework so that emerging best practices can be adapted without sacrificing uniformity.

India’s gig economy stands at a pivotal moment. Its growth trajectory is undeniable, but without an inclusive and harmonized policy framework, the sector risks deepening inequalities and leaving millions of workers vulnerable. A national strategy that combines consistency with flexibility, and innovation with protection, is essential. By aligning worker welfare with economic dynamism, India has the opportunity to set global benchmarks for a fair, equitable, and sustainable gig economy, one that not only drives growth but also safeguards the dignity and security of its workforce.

*The Author is a leading policy professional at MSL Group

As India advances towards becoming a developed nation by 2047, e-commerce stands as both catalyst and exemplar of inclusive progress
India stands at a pivotal moment in its retail evolution. With a market valued at US $1.06 trillion and projected to nearly double US $1.93 trillion by 2030, e-commerce is set to contribute close to 16 per cent. What was once seen as a convenient alternative has now become the preferred shopping channel for millions of households.

This festive season alone, the share of households choosing e-commerce as their primary mode of shopping surged by 115 per cent, with more than 60 per cent urban families planning to shop online, according to a recent LocalCircles report. These shifts mark more than a festive upswing—they signal a structural transformation in buying behaviour that is reshaping retail, widening opportunities for small businesses, and fueling India’s digital and economic momentum.

Central to this change is the growing trust in digital platforms that offer wider product choices, unmatched convenience, and the assurance of easy returns and refunds. What makes this transformation even more significant is its penetration beyond metros. The Deloitte-FICCI report highlights that Tier II and III cities now generate over 60 per cent of all e-commerce transactions in India. This democratisation of opportunity has been powered by affordable smartphones, seamless digital payments, and trustworthy delivery infrastructure.

The true promise of India’s e-commerce revolution lies in how it empowers micro, small, and medium enterprises. Digital marketplaces now connect millions of small sellers—many from India’s heartland—with customers nationwide, ensuring that festive prosperity flows well beyond metropolitan centers.

Government initiatives such as One District One Product (ODOP) and the Production-Linked Incentive (PLI) scheme are further amplifying this transformation. By providing policy support, market access, and incentives, these programmes are creating structured pathways for local entrepreneurs to participate meaningfully in the digital economy.

E-commerce is also proving to be a powerful employment engine. Each festive season generates substantial employment across logistics, packaging, customer service, and technology roles. This serves as both an economic multiplier and an engine for skills development, particularly for young people in smaller cities and towns.

For India’s digital commerce ecosystem to realise its full potential, trust remains fundamental. The recent LocalCircles survey shows that Indian consumers place the greatest trust in platforms with transparent and effective returns and refund processes, with Amazon emerging as the most preferred among e-commerce sites, while Big Basket leads among quick commerce platforms. Nearly 90 per cent households also cite quality assurance, fair pricing, and hassle-free returns as decisive factors in their shopping choices. The takeaway is clear: customer trust is key, and platforms that prioritise consumer protection are not only driving festive sales but also building lasting customer relationships that sustain growth year-round.

The shift to digital payments further illustrates this trust transformation, with over 90 per cent of urban households expected to transact digitally this festive season. Embedded payment solutions, streamlined checkouts, and robust security measures have made online commerce safer and more frictionless than ever, reducing cash dependence while creating efficiencies throughout the value chain.

As India advances towards becoming a developed nation by 2047, e-commerce stands as both catalyst and exemplar of inclusive progress. By connecting remote artisans with global markets, digitising traditional businesses, and creating economic opportunities across the socioeconomic spectrum, e-commerce demonstrates how technology can drive equitable growth and global value chain integration.

The festive season of 2025 may indeed mark a turning point—not just in sales figures but in how we conceptualise commerce itself. By harmonising technological innovation with trust and inclusivity, India’s digital marketplace can establish global benchmarks for responsible retail.

As the lights of celebration brighten homes across our nation, we must reflect on a deeper truth: true progress isn’t measured solely by transaction volumes or growth percentages, but by how we empower communities, preserve cultural heritage, and create opportunities for all Indians. In this journey, e-commerce isn’t simply facilitating commerce—it’s helping write the next chapter of India’s economic story, where every business, consumer, and community has the opportunity to thrive.

India is, therefore, uniquely positioned to drive e-commerce policy discussions in the APAC region by hosting the 2nd APAC E-commerce Policy Summit on November 3-4, 2025, in New Delhi. The summit provides a unique opportunity for all stakeholders in the ecosystem to interact with an objective that digital transformation leaves no one behind.

The author is professor, Indian Council for Research on International Economic Relation