(MENAFN- Live Mint) New Delhi: The government has proposed new rules making it mandatory for online marketplaces such as Amazon, Flipkart, FirstCry, Meesho, and Nykaa to display a searchable and sortable 'Country of Origin' filter for all packaged goods sold on their platforms.

The move, initiated by the department of consumer affairs, aims to empower consumers with clearer information about product origins while supporting domestic manufacturers through greater visibility for Indian-made products.

The proposal, part of the Draft Legal Metrology (Packaged Commodities) (Second) Amendment Rules, 2025, marks the government's latest step toward increasing accountability in India's fast-growing e-commerce sector, where a large volume of products-ranging from electronics and apparel to household goods-are imported or assembled outside the country, the Union consumer affairs ministry said in a statement on Monday.

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According to the draft notification, every e-commerce entity offering imported products must provide a filter allowing consumers to search and sort listings based on the country of origin.

The proposal also draws significance at a time when India is pushing for greater adoption of Swadeshi, or home-made, products amid rising global trade frictions and steep tariff hikes by the US on Indian exports.

“This will not only make shopping more transparent but will also reduce the time taken by consumers to identify product details on online platforms,” the ministry said.

Tightening oversight

The government has been tightening oversight on e-commerce operations over the past few years, focusing on fair trade practices, misleading advertisements, and product traceability. The Legal Metrology (Packaged Commodities) Rules, 2011, already mandate disclosure of key details such as manufacturer name, quantity, and maximum retail price (MRP). The proposed amendment adds another layer of transparency specific to the origin of goods, bringing India in line with international best practices for consumer protection in digital trade.

The proposal has been released for public consultation, and comments are invited until 22 November.

The amendment aligns closely with the the government's 'Atmanirbhar Bharat' and 'Vocal for Local' initiatives, which seek to promote Indian manufacturing and self-reliance, the ministry said.

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“By helping consumers easily locate 'Made in India' goods, the filter will create a level playing field for domestic producers and enhance fair competition with imported items. The new provision will also aid authorities in monitoring compliance more efficiently, enabling automatic verification of product data and reducing the need for manual checks across thousands of listings,” a senior government official said, requesting not to be named.

“This step will make e-commerce platforms more accountable and transparent in their dealings with Indian consumers,” the official added, saying that it will also discourage misleading or incomplete product disclosures that have been a chronic concern in online trade.

Queries emailed to Amazon, Flipkart, FirstCry, Nykaa, and Meesho remained unanswered till press time.

Beneficial to domestic sellers

Vinod Kumar, president, India SME Forum, said that the move would significantly benefit domestic sellers who often lose visibility to imported products listed under ambiguous or incomplete descriptions.

“For years, small Indian manufacturers have struggled to get fair online visibility. The introduction of a 'Country of Origin' filter could help buyers consciously support Indian brands. It will also compel platforms to be more transparent about imported goods, many of which are often sold without clear labelling,” Kumar said.

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He added that the step could also help small and medium enterprises (SMEs) leverage their 'Made in India' identity as a competitive advantage.“When consumers know where a product is made, they tend to trust it more. This initiative will promote informed buying and help local businesses gain consumer confidence,” Kumar said.

Earlier, Mint reported on 15 July that the Centre was looking to make pricing of retail goods more transparent and consumer-friendly through a potential overhaul of the maximum retail price system.

Retail outlets are currently free to charge any amount up to the maximum printed on the label, and manufacturers do not need to justify how the MRP is arrived at. According to the Mint report, the department of consumer affairs is looking into whether there should be guidelines on linking MRP to the cost of making and marketing items, including essential commodities, packaged goods, and daily-use consumer products.

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