Daily News Analysis

Made in India Label Scheme

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The Made in India Label Scheme has recently been supported by a proposed allocation of INR 995 crores over the next three years, a move that highlights the Indian government’s commitment to promoting domestic manufacturing and enhancing the brand reputation of Indian-made products.

About the Made in India Label Scheme

The Made in India Label Scheme is a voluntary certification initiative aimed at supporting manufacturers by boosting the visibility and credibility of products that are manufactured in India. This scheme is designed to ensure that products made in India have an identity based on origin and quality, giving them a competitive edge in both domestic and international markets.

Key Features of the Scheme:

  1. Brand Recognition: It aims to strengthen the reputation of products manufactured in India, emphasizing their authenticity and quality.
  2. Voluntary Certification: Manufacturers can voluntarily apply for this certification, helping them demonstrate that their products meet certain quality standards and are truly made in India.
  3. Product Origin: The label guarantees the authenticity of the products and helps consumers easily identify items that are crafted with locally sourced raw materials.
  4. QR Code and Logo: The label comes with a QR code and a logo that provide additional details such as location of manufacturing, label validity, and product-specific information. This helps consumers verify the product’s origin and quality.

Objectives of the Scheme

The Made in India Label has several key objectives aimed at improving both the domestic market reach and the global competitiveness of Indian products:

  1. Identity Creation: The label helps products build a distinct identity based on their origin and quality, facilitating better recognition in the marketplace.
  2. Branding and Quality Recognition: It fosters a mechanism to qualify and brand Indian-origin products, ensuring they are perceived as authentic and high-quality by consumers.
  3. Domestic and International Recognition: The label helps in recognizing Indian-made products in both domestic and international markets, allowing them to stand out in a competitive landscape.
  4. Competitive Advantage: By displaying this label, products can gain an edge in the market by indicating their authenticity, differentiation, and quality, helping them compete against other international brands.

Eligibility Criteria for the Label

To qualify for the Made in India Label, the following criteria must be met:

  1. Manufacturing or Assembly in India: The product must be manufactured or assembled wholly or substantially in India. This includes using a significant amount of local raw materials or components in the production process.
  2. Regulatory Compliance: Each product must meet specific quality standards and manufacturing criteria established by relevant regulatory bodies before it can be granted permission to use the label.
  3. Voluntary Participation: The certification is voluntary, allowing manufacturers the option to seek certification as a way to gain trust and recognition in the market.

Stakeholders Involved

  • Department for Promotion of Industry and Internal Trade (DPIIT): The initiative is led by the DPIIT, which is responsible for promoting industrial growth and trade within India.
  • Quality Council of India (QCI): The QCI is actively involved in ensuring the standards of the scheme and maintaining the quality of certified products.
  • India Brand Equity Foundation (IBEF): The IBEF works alongside the DPIIT, advising and promoting Indian products internationally to enhance the brand’s presence in the global market.

Impact and Future Prospects

  1. Increased Export Potential: By creating a recognizable label that guarantees quality and authenticity, Indian products can gain a stronger foothold in global markets, leading to increased exports.
  2. Empowering Local Manufacturers: It supports local manufacturers by enhancing their credibility, helping them compete with international brands both domestically and abroad.
  3. Economic Growth: As the domestic manufacturing sector becomes more competitive, the scheme could lead to greater economic growth and job creation, especially in the manufacturing and assembly sectors.
  4. Consumer Confidence: The label's transparency, backed by certification standards, helps build trust among consumers, ensuring they can easily identify high-quality, locally manufactured products.
  5. Sustainability: The scheme may also encourage more sustainable manufacturing practices by promoting the use of locally sourced raw materials and emphasizing eco-friendly production methods.

Conclusion

The Made in India Label Scheme is an important step towards fostering a strong, competitive, and globally recognized Indian manufacturing sector. By ensuring that products made in India are identifiable, high-quality, and traceable, the government aims to promote self-reliance (Atmanirbhar Bharat) and boost the global presence of Indian products.

 

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