Recently, the Government of India has decided to remove Quality Control Orders (QCOs) on certain products. This has gained mixed reactions from the industry. For some, it offers a sigh of relief, and for others, it raises concerns about quality standards. But beyond this, the question is- what should be the extent of quality regulation for a fast-growing economy like India to balance its manufacturing needs and trade competitiveness?
What are QCOs, and why were these issued?
QCOs are regulations mandating that the Bureau of Indian Standards (BIS) issue certificates for certain products that meet quality and safety standards before they are sold in the market. These certificates are granted only after the applicant’s facilities are inspected, and BIS is satisfied with the quality.
The aim was multifold- curbing sub-standard imports, reducing safety risks, pushing domestic manufacturers to attain global quality standards and strengthening India’s competitiveness in global markets, as quality is a significant non-tariff barrier in international trade dynamics. So far, over 790 products are covered under QCOs, of which 720 were issued between 2016 and 2025.
What has happened, and why the rollback?
On the recommendation of a High-level committee chaired by Shri Rajiv Gauba, Member, NITI Aayog, the Government of India revoked QCOs covering around 69 products, mainly in the textile, chemical, and plastic sectors.
Reasons: Though the intent of QCOs was to ensure the quality of Indian products, it ended up fostering protectionism for Indian industries. These acted as significant non-tariff barriers, hampering India’s export competitiveness, instead promoting it.
Besides, most of the QCOs are on raw materials and intermediates instead of finished products. Several key industries, including chemicals and electronics, remain heavily dependent on imports of critical inputs. The implementation of QCOs reduced input availability and increased costs by 15-20%, hurting the competitiveness of Indian industries, especially MSMEs, which are highly import-dependent for inputs.
Moreover, QCOs led to increased market concentration in favor of larger firms as smaller firms face higher compliance.
As India aspires to integrate deeper into global supply chains, over-regulation in the early product lifecycle can deter investments. Removing QCOs, thus, could be a practical approach in standardising the Indian products.
In short, the removal of QCOs led to
Benefits:
a. Reduced compliances reduce costs, especially for MSMEs
b. Smooth, quick availability of critical inputs and raw materials at lower costs boosts production in certain sectors, including electronics, chemicals, and auto ancillaries.
Concerns:
a. The domestic market may get flooded by cheap and low-quality Chinese imports, hurting production.
Does the revoking of QCOs weaken India’s quality standards?
India’s quality regime is currently at a nascent stage. A drive to standardised quality is effective only when India has a widely distributed, robust infrastructure, including testing labs, and when the domestic industry is better prepared to handle import dependencies, and when costs do not outweigh the benefits. Early compulsions only lead to higher compliance costs, delayed production, and higher prices.
The ideal strategy would be to build capacity first, strengthen the overall infrastructure and then gradually expand QCOs. The European Union, for example, introduced standards through widespread public consultations. Industries voluntarily operate under self-declaration of conformity (DoC) with no compulsion from any third party. Japan and South Korea mandate certification for only high-risk product categories. India’s pace towards compulsion has been quick, but the rollback suggests that the country is now looking to adopt International best practices. Thus, the rollback must not be interpreted as a failure of the system but as a strategic move to build a durable quality regime, because our long-term goal of high-quality, safe products remains intact.
Way Forward
India cannot afford low-quality or unsafe products. To manage risks, the government can mandate QCOs for high-risk, high-import-dependent products; remove them for low-risk, low-import-dependent products; and introduce self-declaration for others. This will reduce policy uncertainty.
Besides, the government may look to expand testing capacity by incentivising private labs through viability gap funding and fast-tracking accreditation timelines. MSMEs can be offered subsidised testing, single-window digital certifications and cluster-based testing facilities. Moreover, India may consider strengthening Mutual Recognition Agreements (MRA) through trade deals. These can instantly reduce import delays and testing bottlenecks.
In all, the big picture is that India’s quality journey is on track. The rollback is a policy correction and not an abandonment of quality goals. Our quality regime is maturing and needs the right approach- build capacity, incentivise and mandate certifications. In its aspiration to become a global manufacturing hub, the approach should be to reinforce competitiveness rather than impose compliance burdens. The message is clear- India aims to raise its standards without choking domestic industry.
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