Editorial 2 : On Quality Control Orders, a Welcome Regulatory Reset
Context
India has withdrawn mandatory Quality Control Orders (QCOs) on several industrial raw materials, marking a shift towards risk-based regulation to support manufacturing competitiveness and ease of doing business, in line with recommendations by NITI Aayog.
Introduction
Quality Control Orders were introduced to ensure product quality and protect consumers from substandard goods. However, their rapid expansion to low-risk industrial raw materials increased compliance costs without proportionate safety benefits. The recent rollback reflects a growing recognition that effective regulation must balance quality assurance with manufacturing efficiency and global competitiveness.
Expansion of Quality Control Orders
- QCOs expanded rapidly from around 70 a decade ago to nearly 790 by early 2025
- Initially focused on safety-critical and consumer-facing products
- Gradually extended to industrial raw materials such as:
- Polymers and chemical intermediates
- Aluminium and copper products
- Certain steel grades
- Fibre intermediates used in textiles
Problems with the Earlier QCO Regime
- Mismatch with Global Practices
- In the EU and the US, mandatory certification is largely limited to finished goods and high-risk products
- Raw materials are governed through voluntary standards and contractual testing
- India’s blanket certification approach was not globally aligned
- Higher Costs and Supply Constraints
- Foreign suppliers from Japan, South Korea, and the EU resisted factory inspections for low-volume shipments
- Indian manufacturers faced higher input prices and limited sourcing options
- Disproportionate Impact on MSMEs
- Complex paperwork and long certification timelines
- Limited BIS testing capacity increased delays
- Reduced ability to integrate into global value chains
- Erosion of Export Competitiveness
- Export-oriented sectors such as textiles, engineering goods, and electronics assembly were affected
- India’s competitiveness weakened vis-à-vis China, Vietnam, and Bangladesh
Recent Rollback of QCOs
- Notification issued on 13 November 2025
- Compulsory BIS certification withdrawn for:
- 14 chemical and petrochemical products
- 6 products under the Ministry of Mines
- These products are widely used industrial intermediates across manufacturing value chains
Significance of the Regulatory Reset
- Shift to Risk-Based Regulation
- Focus on regulating products with genuine safety and consumer risks
- Low-risk raw materials left to market mechanisms
- Support to Manufacturing and PLI Sectors
- Benefits sectors under PLI schemes such as electronics, specialty steel, and technical textiles
- Reliable access to global inputs improves scale and export potential
- Ease of Doing Business
- Reduced compliance burden
- Faster production cycles
- Improved investor confidence
Quality Concerns and Safeguards
- Rollback does not dilute quality ambitions
- Mandatory certification continues for:
- Construction steel
- Electrical equipment
- Pressure vessels and safety-critical products
- A sharper regulatory focus improves credibility of quality enforcement
Way Forward
- Adopt a tiered quality regulation framework:
- Mandatory standards for high-risk products
- Voluntary standards for low-risk industrial inputs
- Strengthen BIS testing infrastructure and reduce certification timelines
- Conduct impact assessments and stakeholder consultations before issuing new QCOs
- Align Indian standards with international benchmarks
Conclusion
The withdrawal of Quality Control Orders on industrial raw materials marks a pragmatic and necessary regulatory reset. By recognising that excessive regulation can raise costs without improving safety, India has taken a crucial step towards strengthening its manufacturing ecosystem. A risk-based, globally aligned quality framework will help India enhance competitiveness, support MSMEs, and integrate more effectively into global value chains.