India plans an enabling provision for domestic industry to skirt QCOs, also extend deadlines

India's quality rules, which riled local manufacturers and raised concerns of shortages, may be about to see some easing, two people aware of the development said.

The Centre may provide more time for local manufacturers to level up and exempt some sections from quality control orders (QCOs) by introducing an enabling provision, the people cited above said on the condition of anonymity.

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The plan is to exempt small, medium, and micro enterprises (SMEs) with annual sales below ₹2 crore from the ambit of QCOs, one of the two people cited above said. Under the quality rules aimed to curb imports of sub-standard goods and raise the quality of Indian products, manufacturers and importers of an array of items must first obtain certification from the Bureau of Indian Standards (BIS).

“Manufacturing is the backbone of economic growth. The proposed changes aim to boost this sector by attracting major players to establish manufacturing units in the country, thereby driving employment generation and fostering economic development," the person said on the condition of anonymity.

The development assumes importance since India has issued over 81 QCOs covering more than 330 products, with plans to expand it to over 2,500 products. Apart from raising concerns about product shortages, the QCOs have also faced pushback from local producers seeking time to adjust and foreign nations seeing it as a barrier to imports.

About 1,014 standards for different products are under review by the Bureau of Indian Standards (BIS), consumer affairs ministry data showed.

R&D imports to be exempt

As part of the plan, the Department for Promotion of Industry and Internal Trade (DPIIT) may allow manufacturers to import certain goods for research and development (R&D) purposes without requiring QCO compliance, the two people said.

Queries emailed to the spokespersons of the commerce ministry and BIS on Tuesday remained unanswered.

“The QCO is designed to improve product quality, not restrict production. We must strike a balance," the second person said.

Also read | More goods to come under quality control orders in Make-in-India step

A QCO directs manufacturers to ensure that specific products meet established quality and safety standards. It mandates compliance with Indian standards for manufacturing, production and imports, aiming to protect consumers and promote high-quality domestic goods in line with international norms.

“The proposed changes aim to address concerns about potential shortages of essential goods and streamline the process for manufacturers to access inputs that might not yet be available locally or require advanced R&D to develop," the second person added.

May face shortages

Mint on reported 7 December that luxury shoe boutiques across India may face shortages in the coming weeks due to the quality rules. The Indian Express reported on 6 December that Indian manufacturers depending on imported copper are staring at shortages thanks to the QCOs.

The changes may also allow businesses reliant on imported goods to import fixed quantities without QCO compliance, the two people said.

Experts said the shift could help the manufacturing sector, particularly SMEs, thrive without the pressure of meeting all QCO standards immediately, while also contributing to India’s larger self-reliance objectives.

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The proposal to relax QCO norms for SMEs and permit limited imports for R&D is a progressive and much-needed step toward fostering innovation while balancing regulatory compliance, said Vinod Kumar, president of the India SME Forum. "QCOs, issued by the Bureau of Indian Standards (BIS), aim to standardize product quality; however, compliance requires upgrading machinery, adopting new technologies, and meeting rigorous testing protocols, posing financial and operational difficulties for MSMEs. While large enterprises can absorb these costs due to economies of scale, smaller businesses face potential closures or market exit. We need a fully rounded solution to handle these challenges... Easing these norms acknowledges the unique constraints of smaller enterprises while reinforcing the country’s commitment to quality standards," Kumar added.