For years, families have felt that official inflation numbers do not always match what they experience in their daily spending. Groceries cost more, airfares rise and fall, and household budgets stretch in ways that the data often fails to capture.That gap may soon begin to close.
India is reworking how it measures inflation. For the first time, the government will use data directly from e-commerce platforms such as Amazon and Flipkart to capture how people are really spending. Online shopping is no longer on the sidelines, it is now part of daily life. In 2024, more than 270 million Indians bought goods and services online, and that figure is expected to grow by about 22 percent each year. Ignoring that reality has become harder.
Why the Change Matters
Until now, India’s Consumer Price Index (CPI) has relied heavily on surveys of physical markets and spending patterns based on an older consumption basket. But the digital economy has reshaped household spending. Streaming subscriptions, online discounts, and dynamic pricing are just as much a part of modern budgets as neighborhood markets.
The Ministry of Statistics has already begun scraping e-commerce prices in 12 major cities and is in talks with platforms for direct weekly price data. These prices will be cross-checked against physical market data to ensure accuracy. The upcoming update will also shift the weightages in the CPI basket, reflecting the reality that Indians are spending less of their income on food and more on services like travel and entertainment.
Part of a Global Trend
India’s move follows a broader global pattern.Countries such as the United States and South Korea have already begun blending online and scanner data into how they track inflation. The closer inflation data gets to how people actually shop, the more sense it makes. For policymakers, it means decisions on interest rates can be anchored to the prices families actually face each day, not just numbers drawn from outdated surveys. For businesses, it offers a closer look at how people respond to prices in real life, what they cut back on, what they still spend for, and how quickly those choices change when the market moves.
Beyond Inflation: A Wider Overhaul
The integration of Amazon and Flipkart data is only one part of a larger effort to modernize India’s economic measurement. The government plans to roll out a new GDP series based on the 2022–23 base year, expand monthly employment surveys with larger sample sizes, and introduce a quarterly Index of Services Production. Services now account for more than half of India’s GDP, yet they are tracked far less frequently than manufacturing. These reforms signal a broader shift toward real-time, digital-first economic governance.
The Human Impact
For households, this change could mean that official statistics will finally align more closely with everyday reality. The cost of living that people talk about at the dinner table may soon be better reflected in the numbers policymakers and businesses rely on. For India’s economy, it is a step toward bridging the gap between traditional statistical frameworks and the digital-first habits of its citizens.
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India’s inflation revamp is more than a technical adjustment. It is a recognition that the economy is no longer confined to physical markets. The shopping cart on your phone is now just as important as the basket in your local store, and India is finally counting both.
As India updates its economic playbook, one question stands out: how are businesses preparing for a future built on real-time data? That’s the kind of conversation we’ll be exploring at AWS Manufacturing Day Thailand 2025
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References
ETBrandEquity. Govt to tap Amazon, Flipkart data directly in inflation revamp, roll out services index.Â
CoinCentral. India Turns to Amazon, Flipkart for Real-Time Inflation Data.Â
Tech in Asia. India to use Amazon, Flipkart data directly in inflation revamp.
