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Quality Control Orders (QCO) regime
What it is
Quality Control Orders make conformity to an Indian Standard and BIS certification mandatory for a listed product, applying equally to domestic manufacture and imports. Hundreds of QCOs now cover steel, chemicals, polymers, textiles, footwear, toys, electronics and machinery
Foreign manufacturers must obtain a BIS licence for the specific factory, which takes months
Impact on industries
- Functions as a non-tariff barrier - it restricts imports from suppliers unwilling to undergo BIS licensing, without breaching tariff commitments
- Raises the quality floor and shifts share from unorganised producers to compliant manufacturers who already meet standards
- Downstream users face input shortages and higher prices where a QCO covers an intermediate India does not produce in sufficient quantity or grade
- Testing cost is fixed rather than proportionate so it weighs on MSMEs, and QCOs are often deferred after industry representation
Industries affected
Steel-TMT/structurals
Speciality Chem-Fine Chemicals, Intermediates & CSM-Large (Large-Cap)
Speciality Chem-Fine Chemicals, Intermediates & CSM-Mid & Small
Textile-Man-made Fibre & Polymer Producers
Footwear, Leather & Luggage
Consumer Electronics & Devices
Furniture & Furnishings
Sports, Fitness & Leisure Goods
Watches & Accessories