If you are one of the people shopping online today, for example, for a phone charger, a water bottle, or your next set of bed sheets, you likely check reviews, price, brand, and delivery time. But sometime soon, another factor may become just as important: where the product is made. The government of India has now proposed making it mandatory for e-commerce platforms like Amazon, Flipkart, and Meesho to clearly mention the “Country of Origin” for every product available on their platforms as part of a new policy they are proposing. The intention behind this is to not only enable consumers to make a more informed choice but also to further support the vision of Atmanirbhar Bharat (a more self-reliant India). This could lead to a radical transformation in the Indian online shopping scenario, affecting the production, marketing, and pricing of products, besides changing the competitive landscape between local and imported goods.
The closer the policy is to being put into practice, the more unavoidable becomes the question: Will this change really benefit Indian producers and environmentally friendly consumers, or will it just be another source of compliance and logistical complication on the already complicated digital marketplace?
Reasons for the Proposal’s Importance
India ranks high among e-commerce markets globally, with the fastest growth rates, and is expected to exceed $130 billion in market value in the coming years. The daily lives of consumers have changed significantly with the increasing number of people going online; hence, the importance of platforms has skyrocketed. Nevertheless, while retail products in physical stores are already openly labelled for their manufacturing location, the same cannot be said about online products. Many such listings lack origin information or are not clearly presented, leaving buyers uncertain about whether a product is Indian, Chinese, or from another source.
The timing of this proposed rule seems intentional. The renewed focus on reliable local or regional supply, particularly for goods produced mainly in India, has returned due to the pandemic, accompanied by political tensions, rising protectionism, and digital nationalism. This aligns with government-driven initiatives like Make in India, PLI schemes, and the push for localisation in manufacturing. In other words, this policy is not just about marking products; it seeks to rethink value flow across the digital retail ecosystem.
Would it Vitiate the Way Indians Make Purchases?
Mandatory country-of-origin labels would increase transparency. Filters such as “Manufactured in India,” “Made in China,” or “Imported” would be added to the existing filters for price, delivery time, and brand. For some price-conscious customers, affordability will remain the primary driver of their decision. For others, though, the origin may influence purchases, especially for home goods, skincare, fashion, and electronics accessories.
However, the real question is whether consumer sentiment will translate into actual action. A ₹499 imported phone case might still command more attention than a ₹799 Indian-made case. But a visible label could also create psychological weight: the sense that choosing Indian-built products helps keep local jobs, industries, and manufacturing ecosystems alive. This shift may take time, but over time, the presence of such information will make more conscious consumer behaviour normal, much the same way organic labels did for food or cruelty-free labels did for cosmetics.
A Possible Boost for Indian Manufacturers
This might be a revolutionary regulation for Indian manufacturers, particularly MSMEs and upcoming D2C brands. The fact that they have excellent origin filters and compulsory labelling means that their products would be different and, most importantly, have a space in the story.
One possible outcome of this rule change may be more supply chain transparency, more investment in domestic manufacturing, and a more distinct Indian brand identity for products made in India. Heritage industries, such as handloom textiles, natural skincare, artisanal crafts, and Ayurveda, which are closely linked to cultural identity and craftsmanship, would benefit most, as their origins are deeply intertwined with cultural identity and traditional skills. However, for most Indian brands, origin is much more than just the technology used to describe it; it is a mark of authenticity, a connection to the past, and a matter of pride. By ensuring that consumers see such details at the time of sale, the rule sets up a scenario where the stories of the products represented are their online shopping experience footprint, that is, the consumers relate to the products through origin, which is not a technical detail buried in specs, but part of the consumers’ interaction with the products.
But Implementation Will Not Be Easy
No matter how promising the advantages might be, the new regulation nonetheless presents numerous operational challenges. Verifying the country of origin for millions of items, most of which undergo some form of change, modification, or relisting, is quite a gigantic task. The very definition of these complicated supply chains makes this issue even more unclear. If a smartphone is entirely manufactured in India but has Chinese chips and American software, how do you categorise it: Indian, foreign, or partially local? To address these issues, they would need to establish new verification systems, implement new rules for onboarding sellers, and conduct regular audits to ensure compliance. The sellers of commodity goods in large quantities may be subject to additional compliance requirements, which in turn would slow down the listing process and burden staff with more paperwork. When this is done on a large scale, it becomes a source of increased costs, additional responsibility, and possibly even disputes over enforcement.
A Small Label with Long-Term Impact
Will the country-of-origin labels change the way people shop online in India just like that? The answer is most likely no, but they will surely change the consumer, manufacturing, and digital commerce in India over the next decade. The proposal extends beyond mere rules and compliance, indicating a gradual yet significant shift—from a convenience- and cost-driven online shopping market to one shaped by identity, ethics, and national economic priorities. If done with care, this proposal will not only raise consumer awareness but also Indian innovation, quality, and supply chain development. At its core, this regulation aims not only to bring transparency to buyers but also to reshape the perception of value in India’s digital economy. Whether we are aware of it or not, the next time we put something in our online shopping cart, the question of its origin may be involved.
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