Sellers were instructed by India's government to declare the country of origin for goods and services purchased via a state-run online portal amid growing calls for a boycott of Chinese goods after a clash on the border in which 20 Indian soldiers were killed.
The statement about the change in requirements for users of its Government e-Marketplace (GeM) portal did not single out China, but an official source said the main objective was to identify items coming from China. A filter will be provided by the portal so the government or its agencies could choose to purchase only those products that meet the minimum 50 percent local content criteria.
As many domestic sellers were so far selling through this portal and importing goods from China, the decision will encourage domestic producers. India is also planning to raise import duties. As part of an effort to protect domestic businesses, the country will impose higher trade barriers on around 300 products from China and elsewhere.