Think tank GTRI calls for review of quality control orders

Economic think tank GTRI on Sunday called for review of quality control orders (QCOs) to ensure that these norms protect consumers without becoming import restrictions or licensing barriers.

Mandatory quality certification under these orders raises costs, hurts MSMEs and makes goods more expensive, the Global Trade Research Initiative (GTRI) said.

It added that if other countries adopt similar orders, Indian exporters could be forced to obtain separate country-specific certifications even when their products already meet recognised international standards, and bear huge travelling and per-diem costs for visiting officers, licensing, renewal and testing fees.

This would raise export costs, delay shipments and create new barriers to trade, GTRI Founder Ajay Srivastava said.

"A top-level review is needed to ensure that QCOs protect consumers without becoming import restrictions or licensing barriers. Without wider reform, the system risks weakening MSMEs, raising prices and discouraging the manufacturing investment that Make in India seeks to attract," he said.

Commerce and Industry Minister Piyush Goyal recently stated in Tokyo that India would develop a framework to ease or waive mandatory quality certification for high-technology industries.

The announcement followed concerns raised by Japanese companies about India's Quality Control Order system..

"The proposed relief for high-technology industries is welcome. But India needs a broader review of its QCO regime, which is raising costs for manufacturers, disrupting supply chains and discouraging investment," he said.

QCOs are government rules that make BIS certification compulsory for some products. If a product falls under a QCO, it must meet the Indian Standard and get the BIS mark before it can be sold or imported in India.

The GTRI said that as per a Japan External Trade Organization (JETRO) survey for fiscal 2025, 71.9 per cent of Japanese manufacturers in India said BIS certification had affected, or was expected to affect, their operations.