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In recent years, the growth of E-commerce has been rapid in India, with millions of consumers now opting for online shopping. However, this increased use of E- commerce websites has also led to an increase in cyber threats and attacks, resulting in significant financial losses and reputational damage. In this context, E- commerce website security has become a critical concern for consumers, businesses, and regulators alike. This critical analysis seeks to evaluate the state of E-commerce website security in India, providing insights into the measures that businesses are taking to protect sensitive personal and financial information. The analysis will assess the effectiveness of various security measures, such as firewalls, SSL encryption, and two-factor authentication, and consider the vulnerabilities and threats posed to E- commerce websites, including phishing attacks, XSS attacks, and SQL injection attacks. The study will also examine the legal and regulatory frameworks in place for E- commerce website security in India and internationally, highlighting the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, the Reserve Bank of India's guidelines for electronic payment transactions, the Payment Card Industry Data Security Standard (PCI DSS), the General Data Protection Regulation (GDPR), and the California Consumer Privacy Act (CCPA). Ultimately, this critical analysis aims to provide recommendations for improving E-commerce website security in India, emphasizing the need for proactive security measures, compliance with legal and regulatory frameworks, and employee education on best security practices. By addressing these key issues, this study seeks to contribute to the development of a more secure E-commerce ecosystem in India, building consumer trust and safeguarding sensitive information.