The Centre has notified the Transition Facilitation (Quality Control) Order, 2026, giving manufacturers a five-year window to comply with quality control norms while initial licences remain valid for two years.
The framework covers 10 sectors, including toys, footwear, furniture, PPE, air conditioners and electrical appliances, with the aim of preventing supply chain disruptions and easing compliance costs.
A DPIIT-led committee will evaluate manufacturers under the new regime, as the government seeks to strengthen quality standards without disrupting production and domestic manufacturing.
India's Latest Manufacturing Reform Targets Compliance Costs and Supply Chains
The Centre has introduced a five-year transition framework easing quality control compliance for manufacturers across 10 sectors, aiming to reduce supply chain disruptions while giving businesses more time to adapt to stricter standards
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Summary
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The Centre has introduced a temporary framework to ease compliance requirements for manufacturers, aiming to prevent supply chain disruptions while giving domestic industries more time to adapt to India's quality control regime.
On Thursday, June 25, the government notified the Transition Facilitation (Quality Control) Order, 2026, which provides temporary relief from certain quality control requirements for manufacturers across multiple sectors.
The framework will remain in force for five years and is intended to ensure that production and supply chains are not disrupted during the transition to stricter quality standards.
Under the new order, companies granted an initial manufacturing licence will be allowed to operate under that approval for two years before they are required to seek renewal.
The move is expected to reduce the immediate compliance burden on manufacturers while allowing regulators to gradually implement quality standards.
Ten Sectors to Benefit
The transition framework covers 10 industry segments, including manufacturers of toys, personal protective equipment (PPE), air conditioners, footwear, furniture, washing machines, water heaters and select electrical appliances.
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According to a Moneycontrol report, the relaxation is aimed at preventing production delays, protecting downstream industries and providing greater flexibility to businesses that continue to source raw materials and components from overseas, particularly China.
Industry participants have argued that abrupt implementation of quality control norms had increased costs and disrupted production schedules, especially for manufacturers dependent on imported inputs.
Special Committee to Assess Applications
To oversee the implementation of the new framework, the Department for Promotion of Industry and Internal Trade (DPIIT) will constitute a special evaluation committee.
The panel will include representatives from the Department of Commerce, Department of Consumer Affairs, Directorate General of Foreign Trade (DGFT) and the Bureau of Indian Standards (BIS).
The committee will evaluate manufacturers based on several parameters, including their technical capabilities, compliance record, internal quality assurance systems and supply chain management practices.
It will also assess applicants' commitment to strengthening domestic manufacturing capabilities and building more resilient supply chains within India.
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Why the Policy Was Introduced
The policy follows recommendations made by a high-level government committee headed by NITI Aayog member Rajiv Gauba, which reviewed the impact of India's expanding quality control framework.
The panel reportedly recommended the cancellation, suspension or deferment of quality control orders covering more than 200 products, citing concerns that the existing compliance regime had significantly increased costs for domestic manufacturers.
According to the committee, the rapid expansion of quality control orders had disrupted established supply chains across several industries, making it difficult for businesses to source components and maintain production without incurring higher costs.
The new transition framework seeks to strike a balance between maintaining product quality standards and ensuring that manufacturers have sufficient time to comply without affecting production, investment or supply chain stability.