Is that ‘Made in India’ product truly Indian? Govt plans to verify

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.

The scrutiny builds on the August 2025 Made in India Label Scheme, a voluntary certification programme designed to help manufacturers demonstrate products that are manufactured in India and meet quality standards. It mirrors the push for lower reliance on imports across industries and developing local value chains, manufacturing everything from components to the final products.

“India has built a strong reputation in recent years as a reliable manufacturing hub, but the credibility of the ‘Made in India’ tag must be safeguarded through strict audits and transparent certification,” said Vinod Kumar, president, India SME Forum. “Consumers, both in India and abroad, should feel confident that when they buy a product carrying this label, it truly reflects Indian value addition, skills, and quality.”

Products manufactured under the production-linked incentive scheme are also counted as manufactured under the Swadeshi initiative.

Made-in-India labelling

The audit will help identify whether products carrying the Swadeshi tag genuinely comply with quality benchmarks and value-addition norms or are simply assembled from imported components and repackaged for sale. The random checks, to be carried out across markets, would act as an enforcement tool complementing the audit mechanism being drawn up by the DPIIT.

The Made in India Label Scheme mandates a logo and a QR code carrying information such as the location of manufacturing, validity of the label, and product-specific details, making it easier for consumers to verify the origin and authenticity of goods.

The QR codes can be scanned to view information such as the manufacturer or packer’s address, the commodity’s common or generic name, its size and dimensions, and customer care details.

It also includes a review and redressal mechanism, quality conformity checks, legal consultations, and an awareness strategy to build consumer trust.

The government has allocated ₹995 crore over three years for the scheme to support QR-coded labels, quality monitoring, marketing, and compliance, helping enterprises, including micro, small and medium enterprises (MSMEs), gain credibility and compete globally.

Swadeshi push

The government has already been promoting Swadeshi and encouraging manufacturers to build domestic capabilities under the Make in India and Atmanirbhar Bharat initiatives. In his 12th Independence Day speech, Prime Minister Narendra Modi urged citizens to make a decisive shift towards swadeshi (local) products, framing it as a shield against global supply chain disruptions, tariff wars, and shifting geopolitical alliances.

“If the sacrifices of crores of people can lead to an independent India, then the decisiveness, self-reliance, and choice of swadeshi products can lead to a prosperous India,” the prime minister had said, urging traders to prominently display and market locally made products.

Manufacturing incentives also helped foreign direct investment (FDI) flows into India rebound in FY25 to $81.04 billion, marking a 14% jump from $71.27 billion in FY24. Prior to that, FDI inflows had fallen from the peak of $84.83 billion in FY22.

The growth in FY25 was partly contributed by manufacturing, which drew $19.04 billion, up from $16.12 billion in the previous fiscal, as the government’s draw investments bore fruit. The inflows have been driven by global majors like Apple, Foxconn and other electronics companies that have expanded their assembly and export operations from India.

To be sure, companies like Apple are indirect beneficiaries of PLI as they get their devices assembled through contract manufacturers such as Foxconn. And some categories of products manufactured only for export are exempt from the government’s made-in-India scrutiny.

Higher investments also boosted exports of electronics, engineering goods, pharmaceuticals, and textiles, even as US President Donald Trump’s 50% tariffs now threaten exports to the world’s largest economy.

In FY25, prior to the US tariffs, exports of electronic goods touched a record high of $38.56 billion, up from $29.11 billion in FY24, largely on the back of mobile phone manufacturing and assembly by companies like Apple. Engineering goods remained the single largest contributor, with shipments rising to $116.54 billion from $109.22 billion in FY24. Drugs and pharmaceuticals accounted for $30.38 billion, compared with $27.82 billion in FY2; while textiles exports grew to $36.55 billion in FY25 from $34.40 billion in FY24. India’s total merchandise exports in FY25 stood at $433.56 billion from $433.09 billion in FY24.