The government procurement portal GeM has made it mandatory for suppliers/sellers to specify the country of origin while registering new products on the portal. The department for promotion of industry and internal trade (DPIIT) is now said to be examining a similar proposal for e-commerce portals.
The decision comes in the backdrop of the call for Aatmanirbhar Bharat which intends to promote self-reliance. More notably, it has come amid calls for boycott of Chinese goods following border clashes between India and China in Ladakh in which 20 Indian soldiers have lost their lives.
At USD 76.38 billion in 2017-18 to USD 70.32 billion in 2018-19, China is the leading exporter to India. India’s imports from China totalled $65.1 billion in fiscal 2020 and exports at $16.6 billion, which translated into a trade deficit of $48.5 billion. Chinese imports contributed to over 30% of India’s aggregate trade deficit.
How will it affect companies?
The tagging in GeM portal will help Indian manufacturers push local products in government facilities. Recently the government has also modified public procurement norms to give maximum preference to companies whose goods and services have 50 per cent or more local content, a move aimed at promoting ”Make in India” and making the country self-reliant.
How it will impact Indians?
The tagging will help buyers to make an informed decision while buying products.