Recently, India’s High-Level Committee on Non-Financial Regulatory Reforms publicly proposed a comprehensive reform of the country’s current Quality Control Order (QCO) framework. According to statistics, the number of products covered by QCOs has increased from fewer than 70 in 2016 to nearly 790 in 2025. This has led to a continuous rise in compliance burdens, supply chain disruptions, increased costs, and other challenges—especially for micro, small, and medium-sized enterprises (MSMEs) and industries reliant on imported raw materials. Therefore, the committee recommends a nationwide reform of the system, focusing on public safety while relaxing unnecessary controls on raw materials and intermediate products.
Key recommendations are as follows:
Synthetic Fibers and Yarns
- Revoke QCOs for PTA (Purified Terephthalic Acid), MEG (Monoethylene Glycol), PSF (Polyester Staple Fiber), VSF (Viscose Staple Fiber), FDY (Fully Drawn Yarn), POY (Partially Oriented Yarn), IDY (Industrial Polyester Yarn), and PSY (Polyester Spun Yarn). These are upstream raw materials with low safety risks, and mandatory BIS certification increases costs and reduces export competitiveness.
Plastics and Polymers
- Remove mandatory BIS certification for PE (including LDPE/LLDPE/HDPE), PP (Polypropylene), PVC (Polyvinyl Chloride), ABS (Acrylonitrile Butadiene Styrene), EVA (Ethylene-Vinyl Acetate), PU (Polyurethane), and Polycarbonate. Current QCOs limit the supply of specialty-grade materials, drive up resin prices, and reduce overall supply chain efficiency.
Base Metals
- Revoke QCOs for upstream metals such as copper, aluminum, tin, lead, nickel powders, and refined/intermediate grades. These products serve as industrial raw materials, and downstream product standards are sufficient to ensure quality.
Steel
- Retain QCOs for construction steel and pressure vessel steel, which are critical to public safety.
- Suspend QCOs for engineering/alloy/automotive steel, electrical steel, wire rods, steel wire ropes, and other raw/intermediate materials. Due to import dependency, suspended categories shall be reviewed by an inter-ministerial panel.
- Eliminate the Steel Import Monitoring System and remove the No Objection Certificate requirement for steel products not covered by QCOs to reduce import barriers.
Footwear and Electronic Components
- Revoke QCOs for materials such as engineered copper wire, solder wire, and adhesive tapes. For these non-consumer-facing products, certification limits supplier choices and increases costs.
Upcoming/Proposed QCOs
- Postpone all new QCOs, especially those targeting raw materials, machinery, and capital goods.
- Require new QCO proposals to undergo risk assessment by an inter-ministerial panel.
Impact of the Reform
- Reduced Regulatory Burden: Removing unnecessary QCO requirements will simplify compliance processes for Indian businesses, particularly MSMEs.
- Improved Supply Chain Efficiency: Flexible access to critical raw materials and reduced dependence on limited suppliers.
- Enhanced Global Competitiveness: Lower costs and reduced import barriers will help Indian manufacturers gain stronger price competitiveness in international markets.
- Shift Toward Smart, Risk-Based Regulation: This reform marks a transition from quantity-driven regulation to a more quality- and safety-driven model, concentrating resources on truly high-risk public safety areas.
Furthermore, for chemicals whose QCOs are not revoked, manufacturers will still need to apply for a license from the Bureau of Indian Standards (BIS) after the order takes effect and use the standard mark on their products. Such control orders do not apply to chemicals intended solely for export. All relevant manufacturers must comply with these new regulations, and any violations will be subject to legal penalties under the Bureau of Indian Standards Act, 2016.
Further Information
