Impact of Cybercrime on the E-Commerce Industry in India: A Systematic Review of Consumer Vulnerability, Regulatory Challenges, and Cybersecurity Preparedness

Abstract

The accelerated digital transformation of India’s economy has positioned e-commerce as a dominant engine of national growth and innovation. However, this expansion has simultaneously intensified vulnerabilities to cybercrime, leading to substantial economic disruptions, erosion of consumer trust, and legal complexities. This systematic review critically synthesizes scholarly literature, government reports, and industry data published between 2015 and 2025 to evaluate the multifaceted impact of cybercrime on the Indian e-commerce ecosystem. The review examines five interconnected dimensions: (a) the evolution and structural dynamics of Indian e-commerce in the context of increasing cyber threats, (b) the nature, scale, and typologies of cybercrimes targeting consumers and digital marketplaces, (c) policy, regulatory, and jurisdictional challenges under India’s cyber law regime, (d) consumer awareness and behavioral responses to cyber risks, and (e) the adequacy of cybersecurity frameworks, enforcement institutions, and corporate governance mechanisms. The findings reveal critical gaps in cyber incident reporting, digital literacy, and compliance infrastructure, exacerbated by rapid technological adoption and a mobile-first consumer base. Although the government has introduced new data protection and cybersecurity mandates, practical enforcement and inter-agency coordination remain limited. The review underscores the need for resilient cyber safety strategies, consumer-centric protections, stronger accountability standards for e-commerce platforms, and national capability building in incident response. This review also identifies critical theoretical and empirical gaps and proposes an integrated conceptual model linking cybercrime exposure, structural vulnerabilities, consumer trust, and e-commerce participation. The study contributes an integrated framework for future research and policy formulation to support secure and sustainable growth of India’s digital economy.