India’s e-commerce sector has emerged as one of the fastest-growing digital markets globally, with projections indicating exponential growth from USD 107.7 billion in 2024 to USD 650.4 billion by 2033. This transformative growth is driven by increasing internet penetration, widespread smartphone adoption, robust digital payment infrastructure exemplified by the Unified Payments Interface (UPI), and progressive government initiatives such as Digital India. However, this rapid expansion has necessitated the development of a comprehensive legal and regulatory framework to address multifaceted challenges including consumer protection, data privacy, intermediary liability, intellectual property rights infringement, and cross-border taxation complexities. This research article examines the evolution of e-commerce in India through the lens of its regulatory architecture, analyzing key legislations such as the Information Technology Act 2000, Consumer Protection (E-Commerce) Rules 2020, and the Digital Personal Data Protection Act 2023. The study explores the dichotomy between marketplace and inventory-based business models, investigates emerging issues related to artificial intelligence-driven commerce, counterfeit goods proliferation, and cross-border transactions, and evaluates dispute resolution mechanisms including online dispute resolution platforms. Through doctrinal analysis and examination of judicial precedents, this article identifies critical gaps in the current regulatory framework and proposes recommendations for harmonizing consumer protection with innovation. The findings reveal that while India has established a progressive regulatory ecosystem, challenges persist in enforcement, platform accountability, and adapting to rapidly evolving technologies. The article concludes that a balanced approach integrating technological advancement with robust consumer safeguards is essential for sustainable e-commerce growth in India’s digital economy.