- With the rising anti-China sentiment, e-commerce websites will direct retailers to add country of origin labels to products.
- E-commerce companies have been given a fortnight to get back to the DPITT with feedback.
- The move came days after the government made it mandatory for sellers to put the country of origin information on its Government e-Marketplace.
E-commerce websites such as Amazon and Flipkart may soon start labelling products with their Country of Origin. This will help consumers segregate Chinese products from the rest in the backdrop of the current anti-China sentiment.
As per a report by ET, the Department for Promotion of Industry and Internal Trade (DPIIT) recently held a virtual meeting with Swiggy, BigBasket, and Grofers to discuss changes in the product listing. It is however not certain as to when the developments will be made.
Facebook-backed Reliance Jio has also agreed to the move, as have Reliance Retail, Tata Cliq, and Jio Platforms.
Sources familiar with the matter told ET that the e-commerce companies should provide the government officials feedback within a fortnight after discussing it with their sellers and retailers.
If this plan to label goods and products materialises, it is likely to hurt the sale of Chinese goods. As the slogans and hashtags of 'Boycott China' and 'Boycott Chinese Products' are trending all over social media. This came after the Galwan valley clash that claimed the life of 20 Indian soldiers and left many injured.
The labelling of products would encourage the government's Make in India policy. "In an offline setting, a consumer can pick up a product, see where it was made, and take an informed decision. Similar details should be displayed on e-commerce websites," a senior government official told Economic Times.
The move is also in line with the government's 'Atmanirbhar Bharat' or Self Reliant India policy that focuses on economy, infrastructure, system, demography, and demand. PM Modi had said this was the time to become vocal for our "local" products and make them global, with a focus on land, labour, liquidity, and laws.
The government recently made it mandatory for sellers to put country of origin information on its Government e-Marketplace (GeM) for all government purchases.
The e-marketplace is a special purpose vehicle (SPV) under the Ministry of Commerce and Industry, which facilitates the entry of small local sellers in public procurement while implementing the Make in India and MSE Purchase Preference Policies of the Centre. Moreover, a Make in India filter has now been enabled on the portal. Buyers can choose to buy only those products that meet the minimum 50 per cent local content criteria, as per IANS.
Last week the government directed the state-owned telecommunications company, Bharat Sanchar Nigam Limited (BSNL) to not use Chinese equipment in its 4G upgradation.