India’s e-commerce industry — projected by multiple estimates to cross $150 billion in gross merchandise value by the end of calendar 2026 — is operating under an expanding but still incomplete regulatory architecture. Despite years of drafting, consultations, and inter-ministerial coordination, the country does not yet have a finalised, notified National E-Commerce Policy. What exists instead is a set of overlapping regulatory instruments at varying stages of completion, each with direct implications for major platforms including Amazon, Flipkart, and the fast-growing quick commerce players Zepto and Blinkit.
The Policy That Isn’t Finished
As recently as early January 2026, a senior official of the Department for Promotion of Industry and Internal Trade confirmed that the commerce and industry ministry is “definitely” working on a new e-commerce policy covering data, consumer rights, counterfeit products, packaging, and rules of origin. The official added, however, that the data provisions of the policy are contingent on the data protection law — which remains before Parliament — and that the department is “not in a hurry” to finalise it.
The first public draft of a national e-commerce policy was released by DPIIT in February 2019, addressing six broad areas: data, infrastructure development, e-commerce marketplaces, regulatory issues, stimulating the domestic digital economy, and export promotion. That draft was never formally enacted. Worldbank It has since been revised through multiple internal iterations, none of which have been released as a public draft for stakeholder comment.
The gap between draft and law matters significantly for platforms, investors, and sellers who are trying to plan compliance. Rules that have been publicly proposed but not yet gazetted carry no legal force; platforms cannot be penalised for non-compliance with provisions that do not exist in notified form.
What Is Already in Force
The regulatory landscape is not blank. Several instruments are currently operative and do affect e-commerce platforms.
The FDI policy on e-commerce, most recently clarified through Press Note 2 of 2018, continues to prohibit 100 per cent foreign direct investment in B2C inventory-based e-commerce. Foreign-owned platforms such as Amazon and Flipkart are required to operate only as marketplaces, not as direct sellers of inventory they own. Worldbank
The Consumer Protection (E-Commerce) Rules, 2020, which are in force, require marketplace e-commerce entities to prohibit listing of associated enterprises as sellers on their platform, and to refrain from sharing information for the unfair advantage of their associated enterprises. HDFC Mutual Fund These provisions directly address the concern about platforms preferentially promoting their own private labels through related entities — a practice that has drawn regulatory scrutiny.
The 2020 Rules also require e-commerce entities to disclose the country of origin of goods and to provide a filter mechanism based on country of origin, display origin notifications at the pre-purchase stage, and show suggestions of alternatives to ensure fair visibility for domestic goods.
The Digital Personal Data Protection Rules 2025, which came into force last year, impose a three-year data retention limit for e-commerce entities with over two crore registered users, require explicit consumer consent before personal data is processed, and mandate a grievance redressal mechanism with defined timelines. E-commerce entities are now required to align their existing consumer-facing mechanisms with these privacy law requirements.
Draft Amendments: Proposed But Not Notified
Beyond what is already in force, a set of draft amendments to the Consumer Protection (E-Commerce) Rules, first proposed by the Ministry of Consumer Affairs in June 2021, contain provisions that — if and when notified — would substantially alter platform obligations.
Among the proposals in the 2021 draft amendments were a ban on certain types of flash sales that manipulate consumer choice or pricing transparency, the introduction of “fallback liability” that would make marketplace platforms responsible where sellers default or fail to deliver, and mandatory appointment of a Chief Compliance Officer, a nodal contact person, and a Resident Grievance Officer — all of whom must be residents and citizens of India. Business Today These proposals have not been gazetted as final rules. Industry stakeholders have raised concerns that stringent platform liability requirements could increase operational burdens, particularly for smaller platforms and startups, and may have unintended consequences in a rapidly evolving sector. Business Today
Quick Commerce: Regulatory Scrutiny Without a Dedicated Framework
The rapid growth of quick commerce platforms — Blinkit (owned by Zomato), Swiggy Instamart, and Zepto — has attracted attention from multiple regulators, but a dedicated quick commerce regulatory framework does not yet exist.
The unique business models of quick commerce platforms, which rely on dark stores and complex ownership structures, have highlighted the absence of a comprehensive regulatory framework in India and drawn scrutiny from the Competition Commission of India, DPIIT, and the Food Safety and Standards Authority of India. The All-India Consumer Products Distributors Federation has raised concerns with the CCI and DPIIT about potential breaches of FDI regulations by quick commerce platforms. Multiple platforms have also been investigated for food safety standards and labour law non-compliance.
The question of whether dark stores — small fulfilment warehouses embedded in residential and commercial zones — constitute retail outlets subject to local zoning and shop establishment laws remains legally unsettled. No national-level notification on this question has been issued as of the date of this report.
ONDC: The Structural Alternative
While the policy framework is being finalised, the government has continued to build out the Open Network for Digital Commerce as an open interoperable alternative to closed platform ecosystems. DPIIT Secretary Rajesh Kumar Singh has described the ONDC as an effort to create an inclusive playing field for different businesses, particularly smaller players who may not get direct access to e-commerce portals. He has stated that the intent is not to compete with any particular portal, but to ensure all e-commerce players participate in the open network. The World Bank
The ONDC completed over 20 crore cumulative transactions in early 2026, a figure the government has cited as evidence of the network’s growing adoption. However, the majority of these transactions are currently concentrated in food delivery and mobility; penetration in general merchandise and electronics — the categories dominated by Amazon and Flipkart — remains limited.
The Practical Position for Platforms
The regulatory picture confronting India’s e-commerce sector in March 2026 is one of active but incomplete transition. Multiple significant rule changes have been proposed and are under discussion; some have been under discussion for more than four years. The FDI prohibition on inventory-based B2C commerce, the country of origin disclosure requirements, and the DPDP Rules are in effect and enforceable. Draft amendments on flash sales, platform liability, and compliance officer appointments are not.
What this means for platforms is that compliance planning must simultaneously address current enforceable obligations and prepare for rules that may be notified without long advance notice — a regulatory environment that industry bodies have consistently described as creating uncertainty. For the kirana stores, small sellers, and delivery workers who are central to the policy’s stated intent, the outcome depends not on what has been proposed, but on what ultimately gets notified, enforced, and implemented at scale.
