Govt to Use Amazon, Flipkart Data for Inflation Overhaul, to Introduce Services Index

As per news reports, India will begin collecting price information from e-commerce companies, including Amazon and Walmart-owned Flipkart, to update the country’s retail inflation index. This follows concerns that the current system does not fully capture consumer spending trends, particularly as online shopping grows rapidly across the country.

Data Collection and Coverage

As per news reports, the Ministry of Statistics has started scraping product prices from websites in 12 large cities with populations above 2.5 million. The talks are also underway with major e-commerce platforms to provide direct access to their data. Companies will be required to share weekly average prices of goods, which will be verified against other datasets to avoid distortions.

Read more: India-Amazon Pact to Boost E-Commerce Exports Amid Rising US Tariff Pressures!

Consumer Price Index Revision

The new data will be included in the Consumer Price Index (CPI) when an updated series is introduced early next year. Alongside this, the weightage of items in the index will be revised based on the latest Household Consumption Expenditure Survey. The survey showed that households are spending a smaller proportion of their budgets on food compared with earlier years.

Addition of New Categories

The revamped index will also incorporate price information for services such as air travel and streaming media, reflecting their increasing role in household consumption. This is in line with practices in other countries such as the United States and South Korea, which have integrated scanner and online price data into inflation calculations.

Wider Statistical Updates

Beyond inflation, the ministry has nearly doubled the number of households covered under the monthly Periodic Labour Force Survey, expanding the sample from 45,000 previously. Work is also underway on a new Index of Services Production (ISP), designed to measure quarterly output in the services sector, which makes up more than half of India’s GDP. The ISP is expected to be launched by mid-2026.

Conclusion

The inclusion of e-commerce and service-sector data marks a significant update in the way inflation and economic activity are tracked, aiming to provide more representative and timely indicators.

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