Context:

• India has withdrawn Quality Control Orders (QCOs) on a wide range of industrial raw materials and intermediates, marking a significant regulatory reset in manufacturing governance.
• The move reflects a shift away from excessive mandatory certification towards a risk-based, pragmatic quality regime, aligned with global best practices.
• The decision (notified on November 13) follows the concerns raised by industry, MSMEs, and NITI Aayog.

Quality Control Orders (QCOs):

• QCOs mandate compulsory BIS certification for specified products, intended to prevent substandard imports and protect consumers.
• Over time, QCOs expanded from about 70 products a decade ago to about 790 products (as per NITI Aayog), including low-risk industrial inputs.

Key Features of the Rollback:

• Removal of compulsory BIS certification for 14 chemical products (chemicals and petrochemicals department) and 6 products (ministry of chemicals).
• It covers widely used industrial intermediates such as polymers, fibre intermediates, aluminium and copper products, and certain steel grades.
• These inputs pose no direct consumer safety risk.

Problems with the Earlier QCO Regime:

• One-size-fits-all regulation: Mandatory certification applied even to low-risk, widely traded inputs. Certification became a blunt instrument, not a targeted safety tool.
• High compliance costs: Foreign suppliers (Japan, Korea, EU) often refused factory inspections for low-volume exports. Resulted in input shortages, higher prices, reduced sourcing options.
• MSME and export competitiveness hit:
  • MSMEs struggled with paperwork, delays, and limited testing capacity.
  • Export sectors (textiles, electronics, engineering goods) lost price competitiveness vis-à-vis Vietnam, China, Bangladesh.
• Global practice ignored: In the EU and US, conformity requirements apply mainly to finished goods, safety-critical items. Intermediate inputs are governed largely by voluntary standards and contracts.

Significance of the Rollback:

• Regulatory maturity: Signals India’s shift from over-regulation to smart regulation. Acknowledges complex modern supply chains, especially under PLI schemes.
• Boost to manufacturing strategy: Easier access to globally competitive inputs. Supports India’s goal of becoming a manufacturing hub. Positive signal to investors and trading partners.

Challenges and Way Ahead:

• Risk of quality dilution if oversight weakens: Mandatory certification only where consumer or public safety is directly involved (e.g., pressure vessels, electrical equipment).
• Capacity constraints: Improve regulatory capacity, expand testing facilities, reduce certification timelines, and pre-notification impact assessments.
• Focus on enforcement, not expansion: Sharper enforcement improves credibility more than regulatory overreach.
• Weak voluntary standards: Promote contractual quality assurance and international standards for intermediates.

Conclusion:

• The rollback of QCOs marks a decisive shift from compliance-heavy regulation to outcome-oriented governance.
• Regulations that raise costs without enhancing safety undermine India’s manufacturing ambitions. Regulation should protect consumers, not choke competitiveness.
• A proportionate, globally aligned, and capacity-driven quality regime will better position India in the industries that will define the next decade.