Swadeshi or not? Govt to audit 'Made-in-India' tags

The government plans to verify whether products labelled as 'Made in India' meet domestic production criteria amid concerns that several such items do not qualify for the tag, according to two people aware of the matter.

- Dhirendra Kumar

The departments for promotion of industry and internal trade (DPIIT) and consumer affairs will scrutinize production facilities, sourcing of raw materials and components, and adherence to domestic value-addition norms, the first of the two people cited above said, speaking on the condition of anonymity.

The consumer affairs department also plans to ask the Bureau of Indian Standards (BIS), the apex standard-setting agency, to randomly collect samples and spot-test 'Made in India' goods, this person said.

For most products, a critical parameter to qualify for the 'Made-in-India' status is a minimum value addition or local content of 50%. However, the government has made exceptions for certain industries following consultations.

This benchmark will form the basis of the audits to determine which products can legitimately qualify for the Swadeshi or 'Made in India' tag, the second person said, also speaking anonymously.