India’s expanding consumer market brings new frictions

By: Team India Tracker

E-commerce’s share of consumer complaints has tripled—from about one in ten in 2015 to nearly one in three by 2024—highlighting the shift to online retail and rising concerns over quality, delivery and grievance redress

India’s consumer economy is expanding rapidly—deeper, more digital and more formal than before. But the latest data on consumer complaints, e-commerce disputes and food safety suggest that this growth is also becoming more contentious. The numbers point not just to rising grievances, but to a structural shift in how markets function and how consumers assert their rights.

Start with the headline trend. Consumer cases fell sharply by 32.63 per cent in 2020 to 120,018, largely because pandemic-related restrictions limited filings. But the rebound since then is more telling. Cases rose to 148,422 in 2021 and further to 174,280 in 2022. They eased slightly to 171,468 in 2023 before inching up again to 173,181 in 2024. The direction is clear: as economic activity normalised, disputes rose alongside it. This is not a one-off spike; it reflects a steady expansion in consumer engagement with formal grievance systems.

Part of this increase is a sign of progress. The Consumer Protection Act, 2019 has strengthened the redressal framework, creating a three-tier system of commissions and enabling easier, often digital, complaint filing. Greater awareness and access mean consumers are more willing to challenge firms. Rising complaints, in that sense, also signal a more empowered consumer base.

Yet the composition of complaints reveals deeper stresses. The most striking shift is in e-commerce. The share of complaints linked to online platforms has nearly tripled — from 10.94 per cent in 2015 to about one in three by 2024. This mirrors the explosive growth of India’s digital marketplace. But it also exposes persistent gaps: inconsistent product quality, unclear return policies, delayed deliveries and weak accountability in multi-seller platforms.

For the economy, this matters. E-commerce has been a key driver of consumption, investment and logistics growth. But rising dissatisfaction raises the risk of tighter regulation and higher compliance costs. If trust erodes, growth could slow — especially in high-value segments. The clustering of complaints in electronics (32 per cent), consumer durables (28.5 per cent), telecom and banking underscores that grievances are concentrated in sectors central to modern consumption.

Geography adds another dimension. Northern states have dominated complaint filings since 2021. Gujarat’s share rose from 8.35 per cent in 2022 to 11.22 per cent in 2025, while Uttar Pradesh has remained in the 10–11 per cent range. Maharashtra’s share has declined from 14.05 per cent in 2021 to about 10 per cent more recently. Haryana and Kerala have seen steady increases, with Kerala’s share more than doubling from 3.33 per cent in 2021 to 7.38 per cent in 2025.

This pattern reflects more than just population or consumption levels. It also signals uneven awareness and access to grievance redressal. States with better digital penetration and administrative responsiveness tend to report more complaints—not necessarily because markets function worse there, but because consumers are more willing and able to seek redress.

Perhaps the most worrying signal comes from food safety. Of the 1.3 million food samples tested between FY15 and FY25, around 0.3 million — roughly one in five — were found to be adulterated. In FY24 alone, more than 44,000 samples failed quality checks, before easing slightly to about 34,000 in FY25. The share of adulterated samples has remained close to 20 per cent in recent years.

For an economy that is urbanising and shifting towards packaged foods, this is a serious concern. Food adulteration is not just a regulatory lapse; it is a public health risk with long-term economic costs. It raises healthcare burdens, reduces productivity and erodes trust in brands and supply chains—all of which are critical for the growth of organised retail and food processing.

Taken together, these trends reveal a widening gap between consumer expectations and market outcomes. India’s consumer base is becoming more demanding, but institutional enforcement and quality assurance mechanisms are struggling to keep pace. This mismatch has implications beyond individual grievances. It affects investor confidence, regulatory direction and the sustainability of consumption-led growth.

For policymakers, the challenge is to strengthen enforcement without stifling innovation. Faster dispute resolution, tighter quality standards and clearer accountability frameworks—especially for digital platforms—will be essential. For businesses, the message is equally clear. In a competitive market, trust is becoming a core economic asset. Companies that fail to address consumer grievances risk not only legal consequences but also lasting reputational damage.

The theme of this year’s World Consumer Rights Day—“Safe Products, Confident Consumers”—captures the stakes. Confidence cannot be legislated; it must be built through consistent delivery.

India’s rising consumer complaints, then, are both a warning and a signal of change. They highlight systemic gaps in quality and accountability. But they also reflect a more assertive consumer—one that could ultimately push markets towards greater transparency, efficiency and fairness.