Quality control orders and India's manufacturing growth
Mandatory standards are meant to protect buyers. Are they also taxing manufacturers?
Published 24 September 2026. Written by Pratidin from the reports linked at the end; every fact checked by a separate review before publishing. How we work
An op-ed in The Hindu argues that India's Quality Control Orders (QCOs), which make Bureau of Indian Standards certification mandatory before a product can be made, imported or sold, need a fresh reassessment because many of them now apply to industrial inputs rather than finished consumer goods, raising costs for manufacturers.
The number of QCOs rose sharply after 2020. A September 2025 study by the Centre for Social and Economic Progress (CSEP) found they had suppressed imports of intermediate goods needed for domestic production without any significant improvement in exports, and NITI Aayog observed that about 70% of recent QCOs targeted raw materials and intermediates.
The government has already begun rolling some back. On 12-13 November 2025, the Department of Chemicals and Petrochemicals withdrew QCOs on 14 products, including polyester fibre and yarn and plastics such as polyethylene, polypropylene and PVC, and the Ministry of Mines on six; the steel ministry withdrew over 50 of its QCOs; and in January 2026 the Heavy Industries Ministry withdrew the omnibus QCO on machinery and electrical equipment safety. Many QCOs on upstream inputs remain in force, and experts caution that removing them must be paired with monitoring for dumping of substandard goods.
Prelims facts
- Quality Control Orders are issued under the Bureau of Indian Standards Act, 2016.
- They make BIS certification mandatory before a product can be made, imported or sold.
- QCOs on inputs such as chemicals, polymers and fibres affect downstream users, many of them MSMEs.
Quick recall
- Under which law are Quality Control Orders issued?
- The Bureau of Indian Standards Act, 2016.
- What does a QCO do?
- Makes BIS certification mandatory before a product can be made, imported or sold.
- What share of recent QCOs target raw materials and intermediates, according to NITI Aayog?
- About 70%.
- What did the CSEP study of September 2025 find?
- QCOs suppressed imports of intermediate goods without significantly improving exports.
- What QCOs were withdrawn in November 2025?
- QCOs on 14 chemical and petrochemical products, including polyester fibre and yarn and some plastics, and six under the Ministry of Mines.
- Which QCO did the Heavy Industries Ministry withdraw in January 2026?
- The omnibus QCO on machinery and electrical equipment safety.
- Why are QCOs on inputs harmful to MSMEs?
- They raise input costs and cause shortages when foreign suppliers wait for certification.
- What risk do experts flag when QCOs are withdrawn?
- Dumping of substandard or cheap imports, which needs monitoring.
Prelims practice question
Quality Control Orders in India are issued under which law?
- Consumer Protection Act, 2019
- Bureau of Indian Standards Act, 2016
- Legal Metrology Act, 2009
- Foreign Trade (Development and Regulation) Act, 1992
Show answer
Answer: (b) Bureau of Indian Standards Act, 2016. QCOs are notified by ministries under the BIS Act, 2016, making standards mandatory.
Use this in UPSC Mains: previous-year questions
Recurring theme: Industrial policy, MSMEs and the cost of trade barriers for manufacturing
- How to use this
Shows India's own use of non-tariff barriers and their costs, a self-inflicted challenge in a protectionist world.
- Quality Control Orders under the BIS Act, 2016 make BIS certification mandatory before a product can be made, imported or sold; their number rose sharply after 2020.
- A September 2025 CSEP study found QCOs suppressed imports of intermediate goods without any significant improvement in exports.
- Note that QCOs are seen as protectionism that invites retaliation and conflicts with FTA commitments.
- How to use this
Gives a current policy whose compliance costs fall on MSMEs and the corrective rollbacks the government has begun.
- NITI Aayog observed that about 70% of recent QCOs targeted raw materials and intermediates, raising input costs for downstream users, many of them MSMEs.
- On 12 to 13 November 2025, the chemicals department withdrew QCOs on 14 products, including polyester fibre, yarn, polyethylene, polypropylene and PVC; the steel ministry withdrew over 50.
- In January 2026 the Heavy Industries Ministry withdrew the omnibus QCO on machinery and electrical equipment safety.
- How to use this
Lets you argue that some recent industrial policy tools, like input QCOs, have raised costs for manufacturers rather than spurring growth.
- An op-ed in The Hindu argues QCOs need reassessment because many now cover industrial inputs rather than finished consumer goods, raising manufacturers' costs.
- The CSEP study (September 2025) found QCOs suppressed intermediate imports needed for domestic production without significantly improving exports.
- Experts caution that rolling back QCOs must be paired with monitoring for dumping of substandard goods.
Mains practice question
Quality Control Orders can protect consumers but may also act as non-tariff barriers that hurt domestic manufacturing. Examine. (150 words)
Model answer
Quality Control Orders (QCOs) under the BIS Act, 2016 make certification mandatory for notified products. Their number has grown rapidly since 2020.
Benefits
- Keep substandard and unsafe goods out, especially cheap imports.
- Push domestic producers to raise quality.
Problems
- Input costs: QCOs on raw materials such as polymers, fibres and chemicals raise costs for downstream MSMEs.
- Supply shortages: foreign suppliers wait months for BIS certification, leading to shortages.
- Trade barrier: seen as protectionism, inviting retaliation and conflicting with FTA commitments.
- Capacity: limited testing labs and inspection staff cause delays.
Way forward
- Prioritise QCOs on finished goods tied to safety.
- Carry out regulatory impact assessments before notifying input QCOs.
- Expand accredited labs and accept mutual recognition with trusted partners.
Standards should raise quality without raising the cost of making things in India.
The basics
Why this matters
Quality Control Orders make certification by the Bureau of Indian Standards compulsory for notified products. Meant to keep unsafe goods out, many now cover raw materials and intermediate goods, raising costs for Indian factories. Their reassessment is a test of how India balances quality, protection and competitiveness.
How a QCO works
A ministry notifies a product; from a set date it cannot be made, imported or sold without a BIS licence and the Standard Mark.
- 1NotificationA ministry issues a QCO under the BIS Act, 2016.
- 2LicensingDomestic and foreign makers seek BIS certification.
- 3EnforcementUncertified goods cannot be made, imported or sold.
- 4ReviewMinistries may defer or withdraw the order.
Why inputs are different
A standard on a consumer product protects buyers. A standard on an input, such as polyester yarn or PVC, affects every factory that uses it. If foreign suppliers wait for certification, domestic prices rise, hurting the MSME sector most.
- Protect buyers' safety
- Common worldwide
- Raise costs downstream
- Act as non-tariff barriers
- Rare in major economies
How we got here
QCOs grew fast, then began to be pared back.
- 2016BIS Act enacted
- After 2020Sharp rise in QCOs
- Sep 2025CSEP study finds input QCOs hurt production
- Nov 2025QCOs on chemicals, polymers and fibres withdrawn
- Jan 2026Machinery safety QCO withdrawn
What is unsolved
Many upstream QCOs remain. As they are withdrawn, India must guard against dumping through targeted tools such as Anti-dumping duty, while keeping genuine safety standards run by the Bureau of Indian Standards. QCOs are a classic example of Non-tariff barriers.
You now know
- QCOs make BIS certification mandatory and are issued under the BIS Act, 2016.
- About 70% of recent QCOs target inputs, according to NITI Aayog.
- Rollbacks came in November 2025 and January 2026.
- Anti-dumping duties are a more targeted tool against unfair imports.
Go deeper
In one line: Quality Control Orders make product standards mandatory, but applied to industrial inputs they have raised costs for Indian manufacturers without boosting exports.
Why it matters for UPSC
GS3 asks about industrial policy and ease of doing business. QCOs show how a consumer-safety tool can turn into a hidden trade barrier.
The core idea
Standards are like a gate at the border: they should keep out unsafe goods. But when the gate is placed in front of raw materials, such as polymers and yarn, every downstream factory that needs those inputs pays more or waits longer. Studies by CSEP and observations by NITI Aayog found this is what happened, and the government has started rolling some QCOs back. The challenge now is to keep genuine safety standards while guarding against dumping.
Numbers and dates to remember
- BIS Act, 2016: legal basis.
- About 70% of recent QCOs target inputs (NITI Aayog).
- November 2025 and January 2026: rollbacks.
Where to go next
- Bureau of Indian Standards: India's standards body
- Non-tariff barriers: Standards as protection
- Anti-dumping duty: The other tool against cheap imports
- MSME sector: Who bears the cost
In one line: QCOs on inputs became a hidden tariff; reform means keeping safety standards for consumers while freeing inputs.
Evidence
A 2025 CSEP study found input QCOs reduced imports of intermediates without significantly raising exports. Foreign suppliers faced long certification waits, creating shortages.
Who pays
Downstream users, especially the MSME sector, pay higher prices, while a few domestic producers of the input gain protection.
Better tools
- Anti-dumping duty targets imports priced unfairly low after investigation.
- Mutual recognition of foreign certifications.
- Risk-based standards limited to safety-critical goods.
Institutional role
The Bureau of Indian Standards should focus on credible testing capacity; QCOs work better when labs and timelines are adequate. As Non-tariff barriers, QCOs can also invite retaliation from trade partners.
Where to go next
- Bureau of Indian Standards: India's standards body
- Non-tariff barriers: Standards as protection
- Anti-dumping duty: The other tool against cheap imports
- MSME sector: Who bears the cost
Bureau of Indian Standards
India's standards body
In one line: BIS is India's national standards body, set up under the BIS Act, 2016 (earlier the 1986 Act), under the Ministry of Consumer Affairs.
Functions
Formulating Indian Standards, product certification (the ISI mark), hallmarking of gold, and laboratory testing.
Voluntary and mandatory
Most standards are voluntary; they become mandatory when a ministry issues a Quality Control Order.
Challenges
Limited testing capacity and slow certification of foreign plants.
Where to go next
- Non-tariff barriers: Standards as protection
- Anti-dumping duty: The other tool against cheap imports
Non-tariff barriers
Standards as protection
In one line: Non-tariff barriers restrict trade through rules and procedures rather than taxes.
Examples
Standards and mandatory certification, sanitary and phytosanitary rules, licensing, quotas and customs delays.
Legitimate or protectionist?
WTO rules allow standards to protect health, safety and the environment, but they must not be more trade-restrictive than necessary.
India's case
Input QCOs are often cited by trade partners as non-tariff barriers.
Where to go next
- Bureau of Indian Standards: India's standards body
- Anti-dumping duty: The other tool against cheap imports
Anti-dumping duty
The other tool against cheap imports
In one line: An anti-dumping duty is an extra tariff on imports sold below their normal value, after an investigation shows injury to domestic industry.
Process in India
The Directorate General of Trade Remedies investigates and recommends; the Finance Ministry imposes the duty.
WTO basis
Allowed under the WTO Anti-Dumping Agreement, usually for five years, with review.
Why it is better than broad QCOs
It targets specific unfair imports rather than blocking all suppliers of an input.
Where to go next
- Bureau of Indian Standards: India's standards body
- Non-tariff barriers: Standards as protection
MSME sector
Who bears the cost
In one line: Micro, small and medium enterprises are classified by investment and turnover and employ a large share of India's workforce.
Classification (revised in 2025)
Micro: investment up to ₹2.5 crore and turnover up to ₹10 crore; small: up to ₹25 crore and ₹100 crore; medium: up to ₹125 crore and ₹500 crore.
Why they matter
They account for a large share of manufacturing output and exports.
Pressures
Access to credit, delayed payments, compliance costs and input prices, including those raised by QCOs.
Where to go next
- Bureau of Indian Standards: India's standards body
- Non-tariff barriers: Standards as protection
Take the 24 September 2026 quiz: 30 Prelims-style questions with answers