We live in a digitally advanced age. There isn't a single person here without internet access. India's youth rely entirely on the Internet for all kinds of tasks, including shopping, paying bills, and education. The shift to online buying had a significant effect on traditional shopping methods. The main objective of this paper is to study the fundamental idea and legal framework of e-commerce in India's context. E-commerce , to put it simply, is the exchanging of both digital and physical goods and services over electronic networks and platforms as an alternative to traditional selling methods. By 2026, the Indian e-commerce market is projected to grow to a value of US$200 billion. India’s current e-commerce is growing by 21 % Compounded Annual Growth Rate (CAGR). The e-commerce business has seen increased investment as a result of the rise in digital literacy, which has also widened the base for new entrants. The advent of e-commerce in rural India has significantly transformed the lives of those living there. Not only did it demonstrate the viability of capturing the market, but it also gave rural residents employment opportunities. The world truly transforms into "Vasudev Kutumbakam'' with the aid of e-commerce. Nonetheless, the COVID-19 pandemic-related surge in internet sales and transactions provided fraudsters with a new window of opportunity. Frauds involving online shopping made about 38% of all frauds recorded worldwide in 2020. In order to counteract these kinds of frauds, the Indian government has created a number of rules and regulations. In order to protect internet users from identity theft, financial loss, exposure to pornographic content, asset seizure online, and other serious cybercrimes, the government passed the Information Technology Act of 2000. This act establishes legal measures to monitor and regulate the activities of computer devices that access the internet. However, these laws are insufficient to ensure that e-commerce runs smoothly. This research paper seeks to analyse the regulations and guidelines related to e-commerce in India. The paper also suggests that the realm of e-commerce should be the subject of more strict regulations. Keywords: Digitalization, Technology, E-Commerce.