Highlights:
- E-commerce platforms in India may have to show “Made in China” labels to products sold in India
- The step has been taken in regards to the increase in tension between India and China at the border
- E-commerce companies have been given 15 days to get back to the DPITT along with their feedback
The e-commerce platforms such as Amazon, Flipkart, Myntra and BigBasket along with others may soon start labelling the product with their country of origin. This will help the consumers differentiate between the Chinese products from the others in the backdrop of the current anti-China sentiment because of the rise in tension at the India-China border and others.
According to a report of a leading news agency of India, the Department for Promotion of Industry and Internal Trade (DPIIT), recently has a virtual meeting with Grofers, Swiggy and BigBasket to discuss these change in the product listing. However, it is yet not certain as to when these developments will go live.
Reliance Jio which is backed by Facebook has already agreed to this move along with Reliance Retail, Jio Platforms and Tata Cliq.
Reports claim that the e-commerce companies operating in India need to provide the government officials with the feedback in under a fortnight after discussing it with the retailers and sellers on their platforms.
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If this policy of labelling the products comes in effect, it will hurt the sale of Chinese good in India even further. As the hashtags and captions of “Boycott China” and “Boycott Chinese Products” are trending all over the social media platforms this move will negatively impact the Chinese economy.
This has come after the violent face-off at the Galwan Valley in Ladakh where 20 Indian Army soldiers including an officer lost their lives and many others were left injured.
Additionally, this labelling of products will also encourage the “Make in India” policy of the Indian government. A senior government official said, “In an offline setting, a consumer can pick up a product, see where it was made, and make an informed decision. Similar details should be displayed on e-commerce websites,”.
This move is also in-line with the government’s policy “AtmaNirbhar Bharat” or the Self Reliant Indian policy which focuses on the Indian economy, system, demand, infrastructure and demography. The Indian Prime Minister Narendra Modi said that this is a time to become vocal for “local” products and make them global, which the focus on laws, labour, land and liquidity.
Recently, the government made it mandatory for the sellers to label the Country of Origin on the products they wish to sell on the Government e-Marketplace (GeM).
The e-Marketplace is under the Ministry of Commerce and Industry as a Special Purpose Vehicle (SPV) which will facilitate the entry of small and local sellers in the public procurement while also implementing the Make in India and MSE Purchase Preference Policies of the Central Government.
Additionally, even a Make in India filter has been put into action on the portal. Buyers will be able to choose to buy only those products which meet the basic 50% local content criteria from the portal.
Last week the state-owned telecommunications companies were directed by the Indian Government to not use Chinese equipment in the 4G upgrades. Bharat Sanchar Nigam Limited (BSNL) was one of the state-owned telecoms.
