Rollback of quality control orders is good, but don’t make haste, Pg13

Key Highlights:

• The government has withdrawn over 20 Quality Control Orders (QCOs) covering textiles, plastics, and metal inputs after implementing nearly 700 QCOs since 2017.
• The Bureau of Indian Standards (BIS) Act of 2017 granted ministries broad discretion to impose mandatory Indian standards, leading to a proliferation of QCOs.
• A committee led by Rajiv Gauba recommended action on 208 QCOs related to raw materials, intermediates, and capital goods in October 2025.
• The rollback aims to correct unintended consequences such as supply chain disruptions and increased prices, but carries the risk of a surge in dumped raw materials.

Detailed Insights:

• Before 2014, India primarily used tariffs and anti-dumping duties to manage imports, but the 2017 BIS Act shifted the focus to mandatory quality standards.
• Approximately 25% of QCOs targeted raw materials and intermediates, with steel QCOs covering over 1,300 grades, impacting MSMEs due to double-certification requirements.
• QCOs in the plastics and textiles industries led to reduced imports, higher domestic prices, and difficulties for Indian exporters in obtaining necessary materials.
• Implementation failures, such as the steel ministry's No-Objection Certificate (NOC) regime and inconsistent BIS foreign-factory audits, exacerbated the problems.
• The government should prioritize QCOs for safety-critical products, streamline BIS processes, and closely monitor imports to prevent predatory pricing.
• A phased, predictable, and transparent approach to regulatory changes is essential for building a quality ecosystem that supports both large and small manufacturers.

Key Concepts Involved:

• Quality Control Orders (QCOs): Mandatory standards imposed by the Indian government to ensure product quality and safety.
• Bureau of Indian Standards (BIS): The national standards body of India responsible for formulating and implementing quality standards.
• MSMEs: Micro, Small, and Medium Enterprises, which often face challenges in complying with stringent regulatory requirements.