Context

1. Made in India Label Scheme
2. Logistics: India’s growth engine

Made in India Label Scheme

Context and Background

• COVID-19 impact (2020): Supply chain disruptions pushed India towards self-reliance → Atmanirbhar Bharat Abhiyan.
• Make in India (2014): Focused on investment, innovation, infrastructure, and manufacturing hub creation.
• Vocal for Local (2020 onwards): Strengthened consumer and government focus on promoting Indian products.
• Made in India Label (2025): A branding + certification initiative to unify India’s manufacturing identity under a global-quality benchmark.

Relevance : GS 3(Indian Economy)

Core Features of the Scheme

• Voluntary certification for manufacturers/producers.
• QR-coded labels + logo → Provides:
  • Origin of product.
  • Place of manufacturing.
  • Validity of certification.
  • Product-specific details.
• Administered by DPIIT with advisory role of:
  • Quality Council of India (QCI).
  • India Brand Equity Foundation (IBEF).
• Funding: ₹995 crores for first 3 years; expected to be self-sustaining later.

Objectives

• Provide authentic identity to Indian-origin products.
• Differentiate Indian products in global markets.
• Boost consumer confidence through traceability and quality assurance.
• Strengthen domestic industries and export competitiveness.
• Build a global brand India image similar to Made in Germany or Made in Japan.

Eligibility and Certification Process

• Eligibility:
  • Products wholly or substantially manufactured/assembled in India.
  • Compliance with industry-specific quality & regulatory standards.
• Process:
  • Online application on official portal.
  • Submission of documents + product details.
  • Verification and approval.
  • Certification granted with permission to use label.

Key Provisions

• Minimum Value Addition: 50% (industry-wise exceptions possible).
• Pilot Sectors: Identified based on standards, local trade value addition, and consultations.
• Phase-wise Expansion: Gradual inclusion of more industries/products.
• Enterprise Onboarding: On MII portal with simplified experience.
• Quality Audits: Random Quality Conformity Assessments for credibility.

Integration with National Development Vision

• Linked to SMART Nation vision:
  • Sustainability
  • Manufacturing Capability
  • Atmanirbharta
  • Rating (global competitiveness)
  • Technology
• Global Quality Infrastructure Index 2023: India ranked 10th → Indicates strong metrology, standardisation, and accreditation backbone.

Sectoral Case Studies

• Steel (2023): Two integrated steel producers adopted Made in India branding → improved global positioning, credibility, and customer trust.
• Textiles (2024): QCI–KVIC MoU for integrating branding and quality standards in MSMEs → globalising Khadi and village industries.
• Electronics (2024): Legal Metrology (Packaged Commodities) Rules amended → QR-based declarations on electronic goods → supports transparency and consumer trust.

Roadmap for Success

• Pilot sector → framework definitions & pain points addressed.
• Phase-wise rollout across industries.
• Legal, technical, and marketing infrastructure developed.
• Financial outlay of ₹995 crore covers:
  • Programme team.
  • Technology costs.
  • Marketing & IEC campaigns.
  • Legal consultation.
  • Redressal mechanisms.
• Future aim: Self-sustaining ecosystem for branding Indian products globally.

Strategic Importance

• Economic:
  • Supports MSMEs and large-scale manufacturers.
  • Enhances export competitiveness.
  • Reduces import dependence by encouraging domestic consumption.
• Consumer:
  • Builds trust and pride in Indian products.
  • Provides transparency and authenticity checks.
• Diplomatic/Global:
  • Enhances India’s credibility as a manufacturing hub.
  • Competes with established country-of-origin labels (Made in Italy, Made in Japan).
• Social:
  • Strengthens employment in domestic sectors (agriculture, fisheries, textiles, electronics, steel).
  • Aligns with Atmanirbhar Bharat for socio-economic independence.

Challenges Ahead

• Ensuring uniform adoption across diverse industries.
• Preventing misuse or counterfeit labels.
• Balancing stringent quality benchmarks with MSME ease of compliance.
• Creating international acceptance of the label amidst global competition.
• Avoiding overlap with existing certification schemes (ISI, Hallmark, BIS standards).

Conclusion

• The Made in India Label Scheme is both an economic strategy and a soft power tool.
• It integrates Atmanirbhar Bharat (self-reliance) with Make in India (manufacturing hub vision).
• Provides India with a national brand identity in manufacturing, much like successful global peers.
• Success will depend on quality enforcement, consumer trust, MSME inclusion, and international recognition.

Logistics: India’s growth engine

Understanding Logistics

• Definition: Logistics refers to the management of the flow of goods, services, and information from the point of origin to the point of consumption.
• Components: Transportation, warehousing, inventory management, packaging, distribution, last-mile delivery, and digital tracking.
• Role in Economy:
  • Connects producers → consumers (domestic & global).
  • Reduces costs, improves efficiency, and ensures timely delivery.
  • Backbone of trade, industry, e-commerce, agriculture, and services.

Relevance : GS 3(Infrastructure)

India’s Logistics Landscape

• Contribution: Employs 22+ million people; crucial for job creation.
• Valuation: USD 215 billion in 2021, growing at 10.7% CAGR till 2026.
• Infrastructure Status: Granted in 2017 → enables cheaper, long-term funding like roads/railways.
• GDP Link: Logistics costs in India are ~13–14% of GDP (vs 8–10% in developed countries). Reducing to <10% by 2030 is a policy goal.
• Recent Growth Drivers: Post-COVID recovery, GST, e-commerce boom, and government reforms.

Key Government Initiatives

(a) Policy & Planning

• National Logistics Policy (2022):
  • Aim: Seamless logistics ecosystem, reduce costs, improve global competitiveness.
  • Tools: Unified Logistics Interface Platform (ULIP), Logistics Data Bank (LDB).
• PM GatiShakti National Master Plan (2021):
  • Integrated multi-modal infrastructure (rail, road, ports, airways, digital).
  • 57 central ministries + all states on a 1,700 data-layer platform.
• LEADS Report (annual): Tracks state-level logistics performance → guides policy.

(b) Infrastructure Projects

• Dedicated Freight Corridors (DFCs):
  • EDFC (Ludhiana–Sonnagar, 1337 km) + WDFC (JNPT–Dadri, 1506 km).
  • 96.4% operational by March 2025.
  • Benefits: Reduced congestion, lower costs, energy-efficient freight.
• Multi-Modal Logistics Parks (MMLPs):
  • 35 locations approved (e.g., Chennai, Bengaluru, Nagpur, Indore).
  • 5 to be operational by 2027.
  • Integrates warehousing, storage, and transport hubs.
• Maritime Amrit Kaal Vision 2047:
  • Long-term roadmap for ports, green shipping, hydrogen hubs, coastal tourism, shipbuilding.
  • ₹10 lakh crore investments committed at GMIS 2023.
• Inland Waterways:
  • Record 145.5 MT cargo in 2024–25.
  • Operational waterways increased from 24 → 29.

(c) Digital Reforms

• ULIP: Digital platform integrating multiple logistics-related databases.
  • Crossed 100 crore API transactions (2025).
  • Enables real-time tracking, shipment ETAs, and inventory planning.
• LDB: Tracks EXIM cargo (75 million containers traced by Oct 2024).
• E-Way Bill (2018 onwards): Digital permit for goods >₹50,000. Eliminates paperwork, increases compliance, reduces delays.
• GST (2017): Removed interstate check-posts → improved transit time by 33%, cut costs, improved logistics efficiency.

(d) Skill Development

• Gati Shakti Vishwavidyalaya (GSV):
  • First university dedicated to logistics & transport education.
  • Partnerships with 40+ industries/institutions.
  • Goal: Train skilled manpower for India’s growing logistics needs.

Sustainability in Logistics

• Freight GHG Calculator: Tracks emissions for different modes.
• Rail Green Points: Helps customers measure carbon savings using rail vs road.
• Goal: Increase rail freight share from 35–36% → 45% by 2030.
• Digital platforms (ULIP, LDB): Help businesses choose greener transport modes.
• Coal Logistics Plan: Pushes shift to rail-based movement.

India’s Global Position

• World Bank’s Logistics Performance Index (LPI) 2023:
  • India ranked 38th/139 (up 6 places from 2018).
  • Goal: Enter top 25 by 2030.
• Comparison:
  • India: 13–14% logistics cost of GDP.
  • China: ~8–9%.
  • Germany/Japan: ~7–8% with highly efficient multimodal networks.

Employment & Economic Impact

• Employment: 22 million currently; expected to generate millions more jobs via infrastructure projects, MMLPs, and DFCs.
• Exports: Reduced costs → more competitive global trade.
• Domestic Impact: Improves availability of goods, reduces consumer prices, strengthens MSMEs and agriculture value chains.

Challenges

• High logistics costs (13–14% of GDP).
• Infrastructure gaps in Tier-2/Tier-3 cities.
• Over-reliance on road transport (~60%) → congestion + emissions.
• Complex regulatory environment across states despite GST.
• Skill gaps in logistics workforce.
• Need for stronger digital adoption in smaller enterprises.

Way Forward

• Expand multimodal integration (rail, water, air).
• Strengthen inland waterways (low cost + eco-friendly).
• Invest in green logistics (EV trucks, hydrogen hubs, rail freight).
• Encourage private investment in MMLPs, warehouses, cold chains.
• Improve last-mile connectivity in rural & semi-urban regions.
• Promote skill development via GSV and logistics skilling programs.
• Focus on reducing costs to <10% of GDP by 2030.

Conclusion

• Logistics is India’s backbone for trade, industry, and economic growth.
• It transforms “movement of goods” into “movement of opportunities.”
• With NLP, GatiShakti, DFCs, MMLPs, and digitalization, India is on track to become a top 25 logistics performer by 2030.
• A strong logistics ecosystem is key for achieving $5 trillion economy (2027) and Viksit Bharat 2047 vision.