GTRI has urged the Department for Promotion of Industry and Internal Trade (DPIIT) to issue detailed operational guidelines for the quality certification mechanism newly notified by the government, saying the success of the reform will depend on transparent implementation.
The Global Trade Research Initiative (GTRI), a trade policy think tank, has urged the Department for Promotion of Industry and Internal Trade (DPIIT) to issue detailed operational guidelines for the newly notified quality certification mechanism by the government, saying the success of the reform will depend on transparent implementation and time-bound approvals, PTI reported.These recommendations come days after DPIIT notified the Transition Facilitation (Quality Control) Order 2026, creating an alternative compliance pathway under 10 selected Quality Control Orders (QCOs) covering products such as toys, footwear, furniture, air conditioners, compressors, personal protective equipment, hinges, household electrical appliances and household electrical safety products.
Advocate for transparent and time-bound approvals
Ajay Srivastava, founder of GTRI, said DPIIT should issue detailed guidelines covering eligibility criteria, documentation requirements, assessment methodology and timelines for companies seeking approvals under the new framework.“DPIIT should issue detailed operational guidelines specifying eligibility criteria, documentation requirements, assessment methodology and timelines for processing applications,” Srivastava told PTI, adding that decisions should be based on transparent and measurable criteria to ensure consistency and reduce uncertainty for the industry.
He also suggested that the committee adopt a fully digital application and tracking system with specific timelines for the level of service, preferably adjudicating applications within 60-90 days.“Establishing a mechanism to appeal or review rejected applications would enhance confidence in the system,” Srivastava said.
Alternative route to BIS certification
Applications submitted under the new mechanism will be examined by an implementation committee headed by DPIIT, with representatives from Bureau of Indian Standards (BIS), Ministry of Commerce, Ministry of Consumer Affairs, Directorate General of Foreign Trade (DGFT) and other ministries.The reform seeks to address long-standing concerns about delays in obtaining mandatory BIS certification, which industries said had made complying with quality control orders increasingly difficult.However, GTRI noted that only companies incorporated under the Companies Act 2013 are eligible to apply under the new mechanism.According to the think tank, this means that only foreign manufacturers who have an Indian representative company registered under the Companies Act can use the scheme, which may discourage many foreign companies.
“QCO Plus” may replace one bottleneck with another
Srivastava said the new mechanism could replace one regulatory hurdle with another if implementation is not simplified.“This reform is expected to reduce one of the biggest operational problems facing India’s quality control system by reducing reliance on BIS factory inspections. But critics are likely to claim that this reform merely replaces one regulatory hurdle with another,” he said.He added that instead of waiting for factory inspections from the Bank for International Settlements, manufacturers will now need approval from an inter-ministerial committee that exercises broad discretionary powers.Since the committee’s assessment extends beyond technical conformity to issues such as localization, supply chain development and industrial policy, the new framework effectively transforms India’s quality control system into a ‘QCO Plus’ system, Srivastava said.GTRI also recommended that DPIIT periodically publish anonymized data on applications received, approvals granted, average processing time and reasons for rejection to improve transparency.
Implementation will determine success
Another expert said that the effectiveness of the reform would ultimately depend on the implementation framework.“Whether it will ultimately streamline India’s quality compliance regime or merely replace mandatory factory inspections with an equally demanding administrative inspection process is likely to depend on how DPIIT structures its upcoming implementation guidelines and how efficiently the inter-ministerial committee processes applications,” said Shaunak Rungta, director, Jaipur-based Vardhan Group.“The introduction of a committee-based approval process linked to localization and investment commitments suggests that market access under the new regime may remain as much an issue of industrial policy as of technical compatibility,” he added.