- The government has already made it mandatory for sellers to show “country of origin” on Government e-Marketplace
- As of now, the policy has not been finalised yet
- The move is reportedly being made to promote local industries on e-retail platforms
The government of India reportedly plans to ask Flipkart, Amazon, and other e-commerce companies to mention country of origin for products sold on their platforms in the future. Notably, sellers on the Government e-Marketplace (GeM) are already required to specify the “country of origin” on products that are sold on the platform. This move from the government is reportedly to promote local industries and “Made in India” products.
“We have received suggestions. As you know the policy is not yet finalised but our priority is to cut unnecessary imports and boost local manufacturing. We will take all possible steps to promote local industry,” an official was quoted by Business Today. The official further added, “We are planning to discuss with all e-commerce entities to see what needs to be done in this regard.” It should be noted that the official spokesperson for the Ministry of Commerce declined to comment on the subject, as the policy has not been finalised yet.
We will have to wait and see how Flipkart and Amazon respond to this request once it is made official, as a large number of the products on the platforms are currently from brands outside of India. Whether customer behaviour changes with the “country of origin” tag is also speculative at this point.
Roughly 70 percent of the products sold on Amazon and Flipkart are made in China, according to industry bodies cited by Business Today. Some people believe that products made in India do not offer the same value that online buyers have become habitual of, thanks to low-cost goods sold in the domestic market by Chinese companies. Prime Minister Narendra Modi has called for citizens to become “vocal for local” and promote products made in the country.