Auto and chemical sectors lead in quality certifications, CII manufacturing sector study says

India's automotive and chemical sectors are leading in quality protocols and global certifications, while the capital goods and consumer goods sectors align with international benchmarks to boost exports, a study by industry body CII said.

The study said that ambiguities in national standards and inadequate testing infrastructure impede quality consistency across industries.

The study noted a rise in quality awareness, particularly in the auto and chemicals sectors, where meeting global safety and environmental standards is increasingly emphasized. It added that the focus on maintaining quality controls on products "has led to widespread adoption of certifications and quality protocols across various sectors, from capital goods to FMCG (fast-moving consumer goods)."

Increase in quality consciousness

The survey found that more than three-fourths of the companies CII surveyed indicated a rise in quality consciousness over the last decade, while about 22% showed moderate improvement.

The CII study said the auto sector was one of the most sensitive to regulatory changes in quality control regulations to align with global trends in vehicle safety, emissions standards, and consumer expectations. Similarly, the chemicals sector's move towards maintaining quality controls was driven by environmental regulations and the need for sustainability certifications in an increasingly eco-conscious market.

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Companies making capital goods were focusing on quality controls to ensure the durability of their machines in the long run, while consumer goods companies were taking similar measures to stay competitive and meet consumer expectations, the study said.

In contrast, the mining sector recorded a mixed response. The study said some companies faced challenges in consistently implementing a culture of quality due to the fragmentation of operations and the nature of extraction-based industries.

“Quality is not just a benchmark; it is the backbone of a sustainable and resilient manufacturing ecosystem," said Deepak Shetty, chairman of the Council on Manufacturing Excellence, CII and CEO & managing director of JCB India Ltd.

Critical differentiator

Chandrajit Banerjee, director general of CII, said, “In today’s global marketplace, where standards and expectations are continually rising, the emphasis on quality is critical for India’s manufacturing sector. Quality represents much more than product reliability or customer satisfaction; it is a strategic differentiator that has the power to shape India’s competitive positioning worldwide.”

Indian manufacturers are increasingly concerned about maintaining quality controls to comply with regulatory standards and enhance their brands so they can withstand competitive pressures, the study said.

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The adoption of advanced technologies like the Internet of Things (IoT), artificial intelligence (AI), and blockchain has revolutionized quality management across the manufacturing value chain, according to the report.

However, the study added that technology adoption, availability of skilled labour, and supplier quality management are some challenges India's manufacturing has continued to face. 

Raising customer trust

"Small and medium enterprises (SMEs), in particular, often lack the resources to invest in modern machinery or to integrate digital tools into their operations. Budget constraints and outdated standards further limit the capacity of smaller firms to maintain quality consistently," the study said. This comes in light of a massive boost to the micro, small, and medium enterprises in the FY26 budget announced two weeks ago.

"Industries are recognizing that strong quality management attracts customer trust, reinforces brand reputation, and enhances competitive positioning," the report said.

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The study said Indian manufacturers should build robust long-term plans to ensure compliance with quality controls worldwide. "A robust Quality Management Plan (QMP) is vital for Indian manufacturers to ensure compliance, reduce defects, and build customer trust in both domestic and global markets," the study said.

The study also called for uniform quality control regulations. "Many sectors face ambiguity regarding the existence and enforcement of national standards, highlighting the need for clearer and more uniform regulations. Challenges in skilled labour, limited testing infrastructure, and misalignment of domestic and global standards impact quality across industries," the study said.