Will India's New Quality Control Reform Ease Imports or Create Fresh Hurdles?

India has introduced a new framework aimed at easing long-standing bottlenecks in its product quality certification regime, offering manufacturers an alternative route to comply with mandatory quality standards.

While the government says the move will reduce certification delays and improve supply chain efficiency, trade experts argue it could replace one regulatory hurdle with another.

The Transition Facilitation (Quality Control) Order, 2026, notified by the Department for Promotion of Industry and Internal Trade (DPIIT), creates a temporary alternative compliance pathway for products covered under 10 selected Quality Control Orders (QCOs).

The reform seeks to reduce dependence on time-consuming factory inspections conducted by the Bureau of Indian Standards (BIS), which industry has long cited as a major bottleneck.

Why Was the Reform Needed?

Over the past few years, India has significantly expanded the number of products covered under mandatory Quality Control Orders as part of its push to improve manufacturing standards and consumer safety.

Most of these products require BIS Scheme-I certification, commonly known as the ISI Mark. Under this system, manufacturers must undergo factory inspections, production audits and product testing before receiving approval.

While the framework was designed to ensure quality, industry groups have argued that BIS lacks sufficient capacity to inspect the growing number of overseas manufacturing facilities.

This has led to lengthy certification delays, limited the number of approved suppliers and disrupted imports and production across several industries.

The Transition Facilitation Order introduces an alternative compliance route for selected products that were previously required to follow only the Scheme-I certification process.

Manufacturers can now source eligible products from suppliers registered under BIS Scheme-II, a registration-based certification system that relies primarily on laboratory testing instead of mandatory factory inspections.

However, suppliers must first obtain Scheme-II registration and then receive approval from a newly constituted DPIIT-led Implementation Committee before their products can be supplied under the new framework.

The temporary mechanism currently applies to 10 product categories, including toys, personal protective equipment (PPE), air conditioners, compressors, footwear, furniture, hinges, domestic water heaters, washing machines and household electrical appliances.

A New Committee Takes Centre Stage

Instead of relying solely on BIS inspections, applications under the new framework will now be evaluated by an inter-ministerial Implementation Committee chaired by DPIIT.

The committee will include representatives from BIS, the Department of Commerce, the Department of Consumer Affairs, the Directorate General of Foreign Trade (DGFT) and other government departments.

Its assessment will go beyond product quality. Applicants will also be evaluated on factors such as manufacturing capability, technology adoption, research and development, compliance history, quality assurance systems and their contribution to strengthening domestic supply chains.

Not Open to Every Manufacturer

Although the reform aims to facilitate compliance, it is not available to all manufacturers.Only companies incorporated under the Companies Act, 2013 are eligible to apply. This means many foreign manufacturers without an Indian corporate presence may not be able to use the new pathway, potentially limiting its reach.

Beyond Product Quality

According to Ajay Srivastava, former Indian Trade Service officer and founder of the Global Trade Research Initiative (GTRI), the reform represents a broader shift in India's quality control regime.

Traditionally, QCOs focused primarily on ensuring that products complied with prescribed technical standards.

Under the new framework, access to the alternative certification route will also depend on broader industrial policy objectives such as localisation, supply chain development and technology capability.

Srivastava argues that this effectively transforms the system into what he describes as a "QCO Plus" framework, where regulatory approval extends beyond product conformity into industrial policy considerations.

The reform is expected to reduce one of the biggest operational challenges in India's quality control regime by easing dependence on factory inspections.

However, experts caution that it may simply replace one bottleneck with another if approvals become dependent on discretionary committee decisions.

According to GTRI, the success of the framework will ultimately depend on whether the Implementation Committee functions in a transparent, consistent and time-bound manner.

The think tank has recommended publishing clear eligibility criteria, introducing a fully digital application system, deciding applications within 60-90 days, creating an appeal mechanism and regularly disclosing approval statistics to improve transparency.