A high-level government panel has urged the cancellation, suspension, and deferment of Quality Control Orders (QCOs) covering more than 200 products, warning that the expanding scope of mandatory standards has increased compliance costs for manufacturers, disrupted supply chains, and hurt India’s competitiveness. The committee, chaired by NITI Aayog member Rajiv Gauba, includes representatives from the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of MSME, NITI Aayog, and industry bodies such as FICCI, CII, and Assocham, according to Business Standard.
Panel Flags Impact on Manufacturing and Export Competitiveness
The DPIIT panel’s report, submitted last month, recommends scrapping 27 existing QCOs that cover key industrial inputs including plastics, base metals, footwear, polymers, and electronic components. It also suggests suspending 112 QCOs and deferring others related to raw materials and capital goods vital to downstream industries.
Officials familiar with the discussions said the recommendations aim to ease pressure on manufacturers—particularly MSMEs, which struggle to meet complex testing and certification requirements due to cost and capacity constraints. The panel noted that restrictions on critical inputs such as polyester fibre, yarn, and high-grade steel have forced several plants to operate below capacity, raising production costs and weakening export competitiveness.
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Industry and Trade Partners Raise Concerns
Industry associations and global trade partners have also warned that India’s growing use of QCOs could act as a non-tariff barrier. Both the United States and the European Union have flagged these measures during trade discussions, urging India to align with global practices.
Originally intended to ensure product quality and consumer safety, QCOs have expanded significantly in recent years—from 70 products in 2016 to over 790 today, according to government data. The committee recommended that line ministries such as Textiles, Steel, Mines, and Chemicals and Fertilisers reassess their mandates and refer cases of deferment to an inter-ministerial review group for further evaluation.
Analysts believe the proposed rollback, if implemented, could provide relief to smaller manufacturers and improve India’s ease of doing business while maintaining a balance between quality enforcement and industrial growth.