India Intensifies E-commerce Crackdown Ahead of Festive
Indian authorities are ramping up scrutiny of online sellers, imports, and dark stores to combat fake, smuggled, and substandard goods ahead of the festive
The Indian government is intensifying a crackdown on fake, smuggled, and substandard goods sold online ahead of the festive season. Officials told reporters that scrutiny of e-commerce sellers, imports, and supply chains is being ramped up.
The Central Board of Indirect Taxes and Customs (CBIC) is working with major e-commerce platforms and other agencies. The focus is on identifying suspicious sellers and products. Targeted items include imported goods offered at unusually low prices, merchandise suspected of entering the country through smuggling channels, and products sold without mandatory certification.
A senior official said the effort is collaborative. This is in collaboration with large ecommerce platforms who approach the government to help them in identifying fake or substandard products, including electronic items, watches, perfume and cosmetics, or products being sold without proper declaration of country of origin, the official stated.
Focus on Festive Surge and Dark Stores
The push comes as online purchases typically surge during the festive period, creating a much larger flow of consumer goods. A significant focus is on the expanding network of dark stores. These hyper-local fulfillment centers are growing rapidly and are difficult to monitor. Authorities are also scrutinizing them for gross under-reporting of turnover and revenue.
Research consultancy Infisum provided growth projections for the sector. The e-commerce market is expected to expand dramatically by 2030.
| Metric | 2024/2025 Figure | 2030 Projection |
|---|---|---|
| E-commerce Sector Value | $125 billion (2024) | $345 billion |
| Dark Store Network | 2,525 (2025) | 7,500 |
The dark store growth is reportedly driven by surging demand for rapid deliveries.
Scale of the Illicit Trade Problem
The crackdown on e-commerce platforms operates against the backdrop of a much larger illicit trade market. A study by Ficci-Cascade estimated the scale of illicit trade across five key sectors in India. The sectors include textiles, apparel, and FMCG. The estimated annual value is ₹7.97 lakh crore.
A Precedent and a Shift in Focus
The government has undertaken similar monitoring exercises before. One occurred around the rollout of GST 2.0. Authorities then worked with e-commerce companies to track consumer complaints, pricing issues, and non-compliant transactions.
This new initiative represents a shift in focus. The current effort is concentrated on physical products moving through the entire e-commerce ecosystem. Monitoring will track goods from their entry into India to their final sale to consumers.
